Gold and Silver Prices in Armenia Drop Sharply: Daily Decline Reaches AMD 5,089 and AMD 184.5

Gold and silver prices have declined both on global markets and in the national currencies of several countries, including Armenia. As of February 3, the price of gold in Armenian drams fell to AMD 60,709, while silver dropped to AMD 1,257.5. The daily decrease amounted to AMD 5,089 for gold and AMD 184.5 for silver.

The simultaneous decline in quotations of the two key precious metals reflects a shift in investor sentiment and a reallocation of capital within the global financial system.

In Armenia, the decrease in gold and silver prices was further amplified by the currency factor. The conversion of global quotations into Armenian drams made the decline more noticeable for private investors.

Against the backdrop of high interest rates on AMD-denominated bank deposits, precious metals have temporarily lost their appeal as an alternative to fixed-income instruments. This has led to reduced activity in the physical gold and silver market and a shift by investors toward a more cautious, wait-and-see approach.

Will the Price Decline Affect Jewelry Prices?

Despite the significant daily drop in gold and silver prices, a sharp reduction in jewelry prices in Armenia is unlikely. Retail prices are formed based on the cost of the metal, labor, and trade margins, and are revised with a delay. As a result, short-term fluctuations in metal prices do not have a direct impact on the retail cost of jewelry.