💍Gold prices have shattered records repeatedly over the past two years, sending shockwaves through jewelry markets worldwide. In Egypt, where gold carries deep cultural and financial significance, the industry faces a pivotal moment that could permanently reshape how Egyptians buy, wear, and value their jewelry.

The numbers: In 2024, gold prices in Egypt rose over 108%, with the average price per ounce reaching EGP 109.5k. By last year, the average had climbed to EGP 167.8k, representing another 50%+ increase y-o-y. The rally has only accelerated in 2026 thanks to global tensions — prices per ounce have risen by 22% since December 2025, with 21-karat gold trading above EGP 252.7k per ounce as of publication. Globally, gold is trading at around USD5.3k per ounce — up approximately 17% YTD, 90% y-o-y.

For Egyptian jewelry brands navigating a market in flux, the challenge isn’t simply about adjusting price tags, but about redefining value itself.

Azza Fahmy Jewellery is deliberately choosing not to react to every market fluctuation, CEO Fatma Ghaly tells us. “We focus on value, craftsmanship, and storytelling, not simply on metal weight,” Ghaly says. “Our pieces are handcrafted and research-driven, so that is reflected in the price along with materials cost as much as gold or silver costs… Adjustments are made gradually to protect the long-term value of the work and the integrity of the collections, rather than reacting to every fluctuation.”

While heritage brands can draw on decades of reputation and retail presence, independent jewelers face the same market pressures with far fewer resources. Their survival depends on an even more intimate relationship with materials, process, and clientele. Farah Abdelhamid, an independent Egyptian jeweler known for handcrafted silver pieces, says her production has always been “slow and considered,” but the price spikes have forced new discipline in regards to inventory and production cycles: “[I buy] metal at specific times and rates to avoid changing my prices every month,” she explains.

Like Ghaly, Abdelhamid resists the idea that rising costs should dictate design, and her pricing model reflects this philosophy: “My pricing has never been based on metal weight alone, so fluctuations don’t translate mechanically into price changes.” She’s found that transparency about this process builds trust rather than deterring buyers.

Interestingly, rising prices may actually be driving some buyers to purchase rather than wait. “People feel it’s a [window] to buy when the price is fluctuating. It’s a psychological behavior related to fear of prices increasing more and more,” Ghaly tells us. This observation aligns with data from the World Gold Council, which reported that despite record-high gold prices in 2024, the annual value of global gold jewelry consumption reached USD 144 bn — a 9% increase from the previous year, even as physical volumes declined 11%.

The Egyptian market has shown resilience as well. According to the World Gold Council’s 1Q 2024 jewelry report, Egypt saw a 3% y-o-y increase in demand during a quarter when other Middle Eastern markets like the UAE and KSA declined by 10-12%. Both Ghaly and Abdelhamid note that their customers are more intentional with their purchases, looking for jewelry “that feels meaningful, not just defined by price,” according to Ghaly. “They take more time to decide, but when they do, it’s because the piece resonates with them,” says Abdelhamid. She sees hesitation not as lost sales, but as part of a thoughtful process — “a [chance] for discussion, rather than a deterrent.”

Why? The Egyptian consumer’s relationship with gold differs significantly from international buyers, shaping how price fluctuations affect purchasing behavior. “Gold has always carried cultural and emotional weight [in Egypt],” Ghaly says. “It’s worn for adornment, but it’s also seen as a form of security.” Egypt has a buy-and-hold culture that transcends price swings, with households typically buying gold whether prices are rising or falling, but the motivation changes, Evolve Investment Holding CEO Sameh El Torgoman told EnterpriseAM last December. “When prices rise due to inflation fears or FX stress, people rush into gold even as prices go up. The mindset is: ‘Better to move my money now before it loses value.’”

Looking ahead to the next 5-10 years of sustained high precious metal prices, Ghaly anticipates permanent shifts in how Egyptians approach gold. “I think we will see an increase in purchasing overall, but that’s also diversified across different metals,” she predicts.

For makers like Abdelhamid, the surge in gold prices has had an unexpected effect: it’s elevated silver. “The rise in gold prices and in silver together allow for the audience to reframe silver not as a compromise but as a meaningful, expressive metal in its own right,” she says. Silver has seen even more dramatic price increases in comparison to gold, surging past USD 114 per ounce this week after skyrocketing 150% in 2025.

Perhaps most significantly, Ghaly sees Egypt following a trajectory already underway in international markets: the rise of branded jewelry. Egypt’s luxury fashion and jewelry market was valued at approximately USD 3.5 bn in 2024, according to Ken Research house, driven by increasing disposable incomes, a growing middle class, and rising appetite for luxury goods. Regional analysis identifies Azza Fahmy as one of the key players in the Middle East jewelry market alongside regional giants like L’azurde and Malabar Gold & Diamonds, noting that competition with the market has intensified “not only on price and craftsmanship but also on innovation, digital engagement, and ethical sourcing.”

Egypt’s jewelry industry has ambitious goals beyond domestic consumption. Gold and jewelry exports surged 157% in the first 10 months of 2025, reaching USD 6.8 bn compared to USD 2.6 bn in the same period the previous year. Ehab Wassef, head of the Gold and Precious Metals Division of the FEI, projects exports will exceed USD 7 bn by year’s end — the highest in the history of Egypt’s gold and jewelry industry — positioning Egypt as a regional hub for gold and jewelry production, which involves shifting exports toward finished jewelry products rather than just raw materials.

The new gold standard: As precious metals continue their upward trajectory — Goldman Sachs recently raised its December 2026 gold forecast to what now seems like a conservative USD 5.4k per ounce — Egypt’s jewelry industry faces a fundamental question about value. For brands like Azza Fahmy, the answer lies in doubling down on what distinguishes handcrafted, culturally-rooted jewelry from commodified metal. For Abdelhamid, it lies in what she refuses to compromise: materials, intricate production stages, and the integrity of the designs. “Value has never been defined by material alone, but by craftsmanship,” says Ghaly. “That’s what gives the jewelry a lasting presence beyond its weight.”