Singapore gold jewelers pivot to sustain demand as soaring prices push buyers towards bars, coins

Kim Poh Hong Goldsmith, a third-generation jeweler, said in mid-October that demand for its 22-karat gold jewelry fell by roughly 30-40% in the prior two months as higher prices made the traditionally-favored-in-Asia product harder to sell.

"We used to place orders with wholesalers every few weeks. We've stopped ordering for now," owner Susan Tan told Business Insider.

More recently, retailers across the city-state have reported that even festive demand has failed to pick up this year as consumers grow more cautious about prices.

Many are opting to cash in on the rally by selling or trading in old jewelry, they say.

Gold bracelets displayed in a glass showcase at a jewelry shop in Singapore, Arpil 19, 2006. Photo by AFP

Gold surged 64% last year on geopolitical tensions, the U.S. Federal Reserve’s rate-easing cycle, sustained buying by central banks and inflows into exchange-traded funds, Reuters reported.

It broke multiple records, most recently reaching US$4,549.71 per ounce on Dec. 26, 2025. Analysts expect prices to remain high this year.

In Singapore, rising bullion prices sharply boosted the demand for gold bars and coins, which surged by 47% year-on-year to 1.8 tonnes in the third quarter of 2025, according to World Gold Council figures cited by The Business Times.

However, jewelry consumption in the city-state slipped 8% to 1.4 tonnes at the same time.

That drop was seen across the world, even in the two largest gold-consuming countries, India and China, where gold jewelry purchases by volume dropped 31% and 18%, respectively.

"The record gold price environment was the primary reason for the decline, simply due to affordability," the council said.

Ho Nai Chuen, managing director of On Cheong Jewellery and president of the Singapore Jewellers Association, said investment-grade gold bars qualify as Investment Precious Metals and are therefore exempt from Goods and Services Tax.

"That prompted some of the consumers to pick gold bars rather than buying gold jewelry, so that they can preserve the value of the currency," he told Channel News Asia.

As prices increasingly hold back purchases, retailers now have to balance between keeping products affordable and maintaining design appeal.

Chong Cui Xin, merchandising manager at G&J Goldsmiths & Jewellery, said customers are gravitating toward lighter pieces.

"During these few months, we tried to bring in necklaces, bracelets (that are) less than 3g, which are more budget friendly for the consumers," she said. "(We are also) bringing in more hollow designs (...) to cater to the needs of the consumer."

Similarly, Joanne Sim, designer and co-founder of Eli J Fine Jewelry, said the brand has had to rethink its pricing strategy as around 20-30% of buyers now opt for lower-priced 14-karat gold, up from roughly 10% before the gold rally.

For customers looking for white gold, Eli J offers platinum as an alternative, given its lower spot price.

For ready-to-wear pieces, the store uses 14-karat gold and slimmer gold bands for selected designs while continuing to reserve 18-karat gold for heirloom-quality pieces that customers still favor.

"At the end of the day, I think that those who want to buy fine jewelry or create a bespoke jewelry piece understand that gold is lasting, and that gold is forever," Sim said.