BAKU, Azerbaijan, October 28. The price of an ounce of gold has recently crossed the $2,750 finish line, hitting a new high watermark. Gold is often seen as a safe harbor for safeguarding wealth when the economic waters get choppy, and in the face of global financial storms, it continues to shine as a tempting investment choice.
Rovshan Amirjanov, Deputy Chairman of the "Azerbaijan Jewelers Association" public union and Chairman of the Technical Committee for Precious Metals and Stones, noted in an interview with Trend that the price of a gram of 999.9-purity gold currently stands at $88.
The expert pointed out that the market's appetite is mainly for gold coins and bars that shine like a penny in a piggy bank, boasting high purity.
"Investors primarily view these high-quality gold products as investment tools, favoring them for long-term protection and investment. These coins and bars are purchased more frequently due to their stability and value retention, particularly in the context of global economic uncertainty and fluctuations in financial markets," he said.
Amirjanov noted that investors are showing a greater preference for gold due to the confluence of geopolitical concerns and economic uncertainties.
"Gold is now seen not only as a profitable investment instrument but also as a mechanism for long-term economic security and protection. The rising prices clearly illustrate the extent to which global economic crises and inflation are troubling investors. There are various reasons for gold's high value. Upcoming presidential elections in the United States, ongoing instability in financial markets, and inflationary pressures in the global economy are key factors. With rising political risks leading up to the elections, investors traditionally increase their purchases of precious metals. Additionally, interest rate cuts by central banks also boost demand for these assets," he explained.
According to Amirjanov, these global trends have a direct bearing on Azerbaijan's gold market.
"The price increases occurring on the global exchange are driving up demand for gold and other precious metals in our country. Consequently, prices for imported gold products are also rising in line with global market rates. Observations show that the local gold market continues to grow daily in parallel with international exchange prices, affecting both consumers and investors, which further enhances the strategic importance of gold in the market."
He added that the dynamics of the global economy significantly influence Azerbaijan's gold market.
"The strategic and economic significance of gold indicates that interest in this metal will persist in Azerbaijan. While global prices have reached record levels, the Azerbaijani gold market is adapting to this price surge," he said.
Amirjanov also discussed the countries from which Azerbaijan imports gold, noting strong players such as Türkiye, the UAE, Italy, Russia, and China.
"Moreover, in recent years, the diversification of Azerbaijan's trade relations and the expansion of opportunities to access new markets have led to an increase in the number of countries involved in the import of precious metals. Alongside growth in local production, competition has intensified, further enhancing the sector's dynamics and development potential," he said.
He highlighted that the export of Azerbaijani jewelry continues to expand each year, noting its competitiveness in international markets.
"Azerbaijani jewelry is in high demand, particularly in countries like Türkiye, the UAE, Kazakhstan, Uzbekistan, Kyrgyzstan, and Russia. The steady growth in export volumes is leading to international recognition for the local jewelry industry and increasing the strategic importance of this sector in Azerbaijan's export portfolio. Azerbaijani jewelry producers combine modern technologies with traditional craftsmanship, creating products that are sought after and highly valued abroad."
With rising demand in international markets, a steady increase in gold exports from Azerbaijan is anticipated.
"Production and export figures are expected to surpass previous periods. The sustainable development of the gold industry, in line with the diversification of Azerbaijan's economy, suggests that the strategic significance of this sector within the country's overall export portfolio will continue to strengthen," he added.
Amirjanov also reported increased production and sales by AzerGold.
"The state company has successfully continued its operations in gold mining and sales through the first three quarters of 2024.
During this period, 48,700 ounces of gold were mined, representing a 27 percent increase compared to the same timeframe last year. The state company also produced around 69,200 ounces of silver. According to sales figures, in the first nine months of 2024, AzerGold sold about 40,200 ounces of gold and 54,700 ounces of silver on both local and international markets," he concluded.