Gold Division Says Impact of Higher Manufacturing Fees on Jewelry Prices Will Remain Limited
Egypt’s Gold and Jewelry Division said the planned increase in manufacturing fees on gold jewelry is expected to have a limited impact on final retail prices, despite the decision to raise workmanship costs by 10% starting next July.
According to industry officials, the adjustment will increase manufacturing fees by an average of EGP 10 per gram, as workshops and manufacturers seek to cope with rising production expenses, labor costs, and operational pressures affecting the gold manufacturing sector.
Market representatives explained that the increase primarily targets workmanship and production charges rather than the raw gold value itself, meaning the direct impact on overall jewelry prices is expected to remain relatively moderate compared to fluctuations driven by global gold prices and exchange rate movements.
The division noted that manufacturing fees vary depending on design complexity, craftsmanship, brand positioning, and product category, with premium and handcrafted jewelry typically carrying higher workmanship costs than standard products.
Industry experts said rising operational costs across the jewelry manufacturing sector — including wages, energy, imported materials, and transportation expenses — have pushed workshops and manufacturers to gradually revise pricing structures during recent months.
Despite the increase, traders expect consumer demand to remain relatively stable, particularly as gold continues to be viewed by many Egyptians as both an investment instrument and a store of value amid economic uncertainty and inflationary pressures.
Market observers added that movements in global gold prices continue to play the dominant role in determining local market prices, while workmanship increases generally have a more limited effect concentrated mainly within finished jewelry products rather than gold bullion or investment bars.
Egypt’s gold market has witnessed strong activity over recent years as consumers increasingly turned toward gold purchases for savings and investment purposes, while jewelry retailers continue adapting to changing market conditions and shifting consumer purchasing power.
Analysts expect the jewelry sector to continue balancing between maintaining competitive pricing and covering rising production costs as global precious metal markets remain volatile throughout 2026.