Amid a sharp surge in gold prices, consumers in Georgia are increasingly struggling to purchase jewelry, according to Nino Chikhelidze, founder of the online store Nielo. While higher gold prices typically drive demand, this year the market is seeing a different trend, with consumer activity remaining relatively subdued despite price increases.
Chikhelidze explains that buyer behavior has shifted significantly. The market is now dominated by two main groups: those seeking high-end, expensive jewelry, and those searching for items at minimal cost, often unable to afford even the cheapest pieces. “The average consumer has almost disappeared,” she noted, highlighting the widening gap in purchasing power.
The pandemic has also changed market dynamics, reducing predictability and stability in jewelry sales. “Earlier, it was easier to anticipate trends and plan ahead, but post-pandemic, the market is evolving, and this year has presented a particularly different reality,” Chikhelidze said.
The rise in gold prices has also affected business margins, making it harder for jewelers to sell products profitably. “For example, an item that cost 200 GEL to produce and sold for 250–300 GEL may now cost 400 GEL, but even selling it for 450 GEL is challenging because consumers cannot meet the expenses,” she added.
