"Jewelry": Silver Demand Drops 50% During Summer

Deb: The First Half of the Year Saw Good Demand

The Secretary of the Jewelry and Silver Trade and Goldsmiths' Association, Salim Deb, revealed that the current summer season witnessed below-average movement in the jewelry and silver markets, affected by the circumstances and events in the region, which reflected on demand levels and commercial activity in the sector.

In a statement to (Alrai), Deb explained that the silver market during the summer season declined by about 50% compared to last season, particularly the demand for investment in bars.

He clarified that the first half of the current year witnessed relatively good movement in silver investment, driven by the significant increases in global silver prices, which reached about $113 per ounce.

He confirmed that the price increase enhanced investor interest, especially in bars and large weights, including kilogram bars, as the markets during that period saw noticeable demand for them as one of the investment tools in the metal.

However, the picture changed during the second half of the year, with the ounce price dropping sharply to levels close to $62 per ounce, according to Deb.

Deb pointed out that the significant price drop directly affected investor behavior, as a large part of them refrained from entering new purchase operations, preferring to wait until prices stabilize and the market direction becomes clear in the coming phase.

He noted that the state of anticipation was not limited to bar investors but extended to the commercial movement in the jewelry and silver market in general, coinciding with the decline witnessed by the markets during the summer season.

According to Deb, the price of a kilogram of silver in the local market is currently about 1540 dinars, while the ounce price globally is around $62.

Deb attributed part of the decline in the silver sector to a set of factors linked to the global industry, primarily the rise in production, energy, and oil costs, along with delays in supply chains, which increased the burdens on industries related to metals and jewelry.

He explained that these factors reflected on global production and trade levels and, in turn, affected investment and demand movements for precious metals, including silver, as investors tended to be cautious and reassess their purchase decisions in light of global price movements.

He indicated that the return of activity to better levels is largely linked to the stability of silver prices and global markets, along with improved regional conditions and the return of confidence among consumers and investors.

Deb urged those wishing to buy silver to go to licensed commercial stores, with the necessity of obtaining an official stamped invoice that includes details of the crafted item, weight, price per gram, in addition to the goldsmith's fees and the total price, to protect their rights.

He also emphasized the importance of products being accompanied by a customs declaration and stamped by the Standards and Metrology Institution, to protect consumers from fraud or potential financial penalties.