Egypt's Gold Market Shifts Towards Investment as 21-Karat Dominance Fades

For decades, 21-karat gold dominated Egypt's jewellery market due to its high purity and durability, making it suitable for intricate designs. However, a structural shift is underway as consumers increasingly opt for 24-karat gold bars over traditional jewellery.

The change began in 2022, when the Egyptian pound weakened against the US dollar, causing gold prices to rise. Consumers began prioritizing products with low making charges and clear resale values, leading to a surge in demand for 24-karat bars. This transformation has split the market into two segments: traditional jewellery, still led by 21-karat gold, and growing investment demand centered on 24-karat bars.

The shift is evident in World Gold Council data, which shows that while jewellery demand increased from 31.4 tonnes in 2021 to 32.3 tonnes in 2022, bar and coin purchases surged from 2.4 tonnes to 19.2 tonnes during the same period. By 2025, investment gold regained the lead, recording 23.6 tonnes compared to jewellery demand of 21.5 tonnes.

The market's direction is further supported by the expansion of locally produced small bars, including quarter-gram, half-gram, one-gram, and ten-gram products. These smaller denominations have attracted substantial demand across jewellery stores, as consumers seek to minimize making charges and maximize resale value.