\n<\/p>\n
Analysts expect prices to stay elevated in the year ahead.<\/p>\n
The spot price for gold is currently trading around US$4,330 to US$4,400 per ounce, nearly double the price at about US$2,600 per ounce at the start of last year.\u00a0<\/p>\n
The highest price for gold per ounce reached about US$4,550 last month.<\/p>\n
For retailers, the challenge is striking a balance between affordability and appeal, in a market where gold is increasingly viewed as an investment first and jewellery second.\u00a0<\/p>\n
Mr Ho Nai Chuen, president of the Singapore Jewellers Association, said investment-grade gold bars are Investment Precious Metals that are exempt from Goods and Services Tax (GST).\u00a0<\/p>\n
Mr Ho, who is also managing director at On Cheong Jewellery, one of Singapore’s oldest surviving Chinese jewellers, said this has influenced consumer behaviour.\u00a0<\/p>\n
\u201cThat prompted some of the consumers to pick gold bars rather than buying gold jewellery, so that they can preserve the value of the currency,\u201d he added.\u00a0<\/p>\n
Retailers noted that even festive demand has been softer than in previous years, as consumers grow more price-sensitive.\u00a0<\/p>\n
With gold prices climbing, some customers are opting for pieces that are lighter in weight. Among them are retirees and elderly buyers, some of whom have been priced out of buying new pieces altogether.\u00a0<\/p>\n
As a result, more customers are selling or trading in old jewellery to capitalise on higher prices, said retailers.\u00a0<\/p>\n<\/div>\n