Gold jewelry sales plunge over 50% in Thailand – ‘Unprecedented Drop,’ says Gold Traders Association President. Small gold shops—relying mainly on handcrafted jewelry sales—are being hit the hardest. Their income primarily comes from jewelry-making labor fees, which are falling along with reduced demand for new jewelry. Moreover, the persistently high price of gold is prompting consumers to sell their gold for profit instead of buying new pieces. This adds pressure to shop revenues that depend on labor fees. If gold prices remain volatile, consumers may delay purchases and opt for investments in gold bars or derivatives, leading to continued sales declines for traditional gold shops. Another source of pressure is the drop in revenue from gold pawning services, due to reduced interest rates offered by government and private pawnshops. These institutions now offer more attractive rates than gold shops, diverting customers away from traditional pawn services at gold stores. Additionally, tighter regulations—such as anti-money laundering (AML) laws and gold transaction reporting requirements—are increasing compliance costs, especially for smaller businesses with limited resources. Despite these challenges, the Gold Traders Association raised the standard labor fee from 500 to 800 baht per baht-weight as of March 1, 2025. Although this offers some revenue support, the rising volatility in gold prices continues to discourage jewelry purchases. Thailand’s small gold shops are closing as consumers stop buying. Soaring prices and weak spending hit hard. Beyond the pricing issues and weak purchasing power, the crisis is severely impacting goldsmiths. Mr. Boonlert Siriphattharawanit, Senior Advisor to the Thai Goldsmiths Association, noted that goldsmiths are seeing significantly reduced workloads. Currently, there are an estimated 50,000–60,000 goldsmiths in Thailand, both shop-based and freelance. With jewelry sales down by more than 50%, 20,000–30,000 of them are now effectively unemployed. Still, he believes goldsmiths could pivot to related fields such as jewelry and accessory design. However, he admits that once they leave the trade, returning could be difficult. “Becoming a skilled goldsmith takes years—some people train for over a decade. Shop owners are trying to retain their skilled craftsmen, fearing a future shortage when demand returns,” Mr. Boonlert said. According to the Gem and Jewelry Institute of Thailand, goldsmith wages vary from below 100 baht to over 300 baht per piece, depending on the complexity, weight, and design of the jewelry. The golden trade turns grim as artisans face mass unemployment amid Thailand’s worst gold jewelry slump.