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【Istanbul, Tu】Gold Price Nears $3,900, Hitting Record Highs; Turkish Jewelry Industry Estimates 30% Drop in Sales

Oct 3, 2025

Editor’s Note

**Editor’s Note:** This article examines how record-high gold prices are reshaping Turkey’s jewelry market, with sales estimated to have dropped by 30% as consumers turn to more affordable alternatives like artificial diamonds and colored gemstones.

Gold Price Surge Impacts Turkish Jewelry Market

International gold prices have repeatedly hit record highs recently, with spot gold approaching the $3,900 mark. Cumulative gains for 2025 have already exceeded 40%, and some experts predict further increases. This has caused concern among Turkish jewelry industry players, as high gold prices deter consumers and artificial diamonds and colored gemstones compete for market share. Industry insiders conservatively estimate a 30% drop in sales.
At the four-day Istanbul Jewelry Exhibition, which opened on October 1, exhibitors hesitated to quote prices due to daily gold price fluctuations, fearing they would scare off consumers.

“This makes sales more difficult. Business is down, we have to make a living, and expenses keep rising. Transactions are not as easy as before. We’ve been hit hard. I wouldn’t say business is down 50%, but it has decreased by 25% to 30%,” said Kok, founder of a Turkish jewelry brand.

Heavy gold jewelry is becoming unaffordable, and global economic instability is dragging down overseas sales. Turkey’s jewelry exports reached $7.5 billion last year, and exceeded $5 billion by July 2025, appearing stable. However, industry insiders reveal a more complex reality.

“Looking at the numbers alone, one might mistakenly think exports are growing. But we are concerned about the decline in industry employment and actual investment. Data shows that between 2024 and 2025, the industry has not truly grown; instead, actual production capacity has decreased,” said Kosk, Vice President of the Turkish Jewelry Exporters’ Association.

Gold prices have been rising for some time. Against the Turkish lira, gold prices have surged over 100% from 2024 to 2025. With prices so steep, consumers are tightening their wallets and looking to other jewelry options.

“Consumers prefer items that look more glamorous but are lighter in weight,” said Kok, founder of a Turkish jewelry brand.

As gold becomes too expensive to sell, jewelry companies are shifting to diamonds and colored gemstones, but face competition from lab-grown alternatives.

“Lab-grown diamonds are much cheaper than natural diamonds. This poses a threat to the diamond and jewelry industry and affects consumer confidence in jewelry,” said Ozdemir, co-founder of the Jewelry Technology Research Center.

Currently, lab-grown diamonds hold a 50% market share in the US, UK, and Australia, and this share is growing. While acceptance in Middle Eastern countries is currently low, the temptation of lower prices and comparable quality may be hard to resist in the future. Under the dual pressure of high gold prices and artificial gemstones, the Turkish jewelry industry is facing its biggest challenge in decades.

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⏰ Published on: October 03, 2025