The goldsmith market in Syria is experiencing a significant decline in recent years due to economic crises that have impacted all sectors and the deterioration of the value of the Syrian pound, which has put gold traders and artisans in front of challenges to confront these crises.

Goldsmith artisans are suffering from stagnation in buying and selling gold. Despite the significant drop in gold prices following the fall of the Assad regime on December 8, 2024, this did not improve the situation for buying and selling, according to some artisans in Damascus.

The value of an 18-carat gold gram today, Wednesday, March 19, reached 765,000 pounds for sale, while the purchase price was 755,000 pounds. As for 21-carat gold, it sold for 890,000 pounds, with a buying price of 880,000 pounds, according to the Goldsmith Association in Damascus.

The exchange rate of the dollar is approximately 10,000 Syrian pounds in the black market, according to the S-P Today website, which specializes in currency prices.

In April 2024, the price of a gram of gold exceeded one million pounds for the first time, recording 1,019,000 Syrian pounds for 21-carat gold and 874,000 Syrian pounds for 18-carat gold, according to the S-P Today website.

Confusion in buying and selling

Goldsmith Shadi, owner of Katya Jewelry shops in Damascus, told Enab Baladi that buying and selling conditions have often seen stagnation, as his business has decreased, with sales falling by 40% over the past two months.

Shadi attributed the decline in purchases to the decrease in individual income, stating, “We are in a situation where people are looking for food, and certainly buying gold in this dire situation is out of their thinking.”

On the other hand, the owner of Pearl Jewelry in the Qassa’ area of Damascus believes that many customers have turned to buying gold pieces as the exchange rate of the Syrian pound against the US dollar has decreased. When the dollar reached 8,500 pounds, several goldsmiths witnessed a movement in purchases, taking advantage of the opportunity presented by the drop in the price of gold.

Ahmed, one of the customers encountered by Enab Baladi in a goldsmith shop in the Qassa’ area, explained that he resorts to converting dollars into gold to avoid losing value in dollars.

He mentioned that he feels exploited when converting dollars into Syrian pounds, as street money exchangers operate in the black market and offer less than the fixed Central Bank rate of 13,200 pounds.

Fluctuation in exchange rates

The Syrian pound has shown some improvement against foreign currencies, as before the regime’s fall, the dollar exchange rate settled for months around 15,000 pounds in the black market, while today it is recorded at 10,000 pounds.

This noticeable decline in exchange rates, combined with the restriction imposed on Syrians to convert currency only in the black market due to the Central Bank’s refusal to conduct exchanges and its policy of liquidity restraint, has led many gold traders to refrain from selling gold and to only buy, avoiding potential losses.

Meanwhile, some traders see this as an opportunity to earn more profits; they compensate for exchange losses by increasing the crafting fees for gold pieces. For example, if a customer wants to buy a gold ring, the artisans add crafting fees ranging from 500,000 to 700,000 pounds approximately. Some traders charge even higher rates.

The crafting fees for gold pieces depend on their type, with goldsmiths charging higher fees for Italian gold compared to other types.

Declining living standards

Saad Fallouh, a civil engineering graduate working in an engineering office, expressed the challenges he faces in establishing a family that now seems like a dream for him. The costs of engagement and buying rings, along with the difficulty of securing house rent, are challenges that stand in his way and prevent him from taking this step.

“The saving solution for us was to sell my entire jewelry to rescue our family from poverty,” said Amina Kholani, who spoke about the difficult economic conditions she faced with her husband. She was forced to sell her gold possessions to help her husband improve their living conditions and pay for physical therapy costs after he suffered an injury that left him unable to walk.

The deteriorating economic situation and the conditions endured by Syrians amid war, displacement, and seeking asylum have altered their priorities, leading them to focus on providing basic needs.

The United Nations Development Program (UNDP) released a report on February 20, stating that 9 out of every 10 people in Syria live in poverty, and one in every four is unemployed.

According to a report published by the World Bank, poverty affected 69%, or about 14.5 million Syrians in 2022, meaning one in every four Syrians, adding further economic pressures on families.

Lack of security

Empty facades of many gold shops in Damascus have become a familiar sight for citizens as many goldsmiths have opted to leave their storefronts empty for fear of being attacked and robbed.

Last February, the province of Damascus was rocked by the murder of gold shop owner Firas al-Bahra in the al-Afif neighborhood in the al-Jisr al-Abyad area.

According to Major Muhannad Jarqoum, head of the al-Salihiya police department in Damascus, investigations indicated that the crime occurred for motives of murder rather than theft, as no property was stolen from the shop.

It is suspected that the motivations for the crime were either revenge against the goldsmith or the accused committed the crime at the request of someone. Essentially, it seems the accused was a “hired killer.”

Since the beginning of 2025, the number of criminal and murder cases against unknown individuals in various Syrian provinces has approached 40, as reported by the Syrian Ministry of Interior on its social media channels.

Several regions in Syria have witnessed various crimes driven by theft, family disputes, revenge, drug trafficking, and others recorded against unknown perpetrators.

Empty facade of a gold shop in Damascus – March 13, 2025 (Enab Baladi/Christina al-Shammas)

Consequences of the economic crisis

The gold market in Syria has witnessed severe fluctuations due to ongoing economic disruptions. Since 2011, the Syrian economy has faced sharp contractions, leading to an increasing budget deficit and a decline in government revenues, which has impacted market stability, including the gold market.

This has resulted in a significant decrease in per capita gross national product from 25% in 2011 to 7.5% in 2020. This deficit has hindered the government’s ability to meet individuals’ needs, according to a study by researcher Mohammed Ali Abdullah regarding the “potential economic and social effects of the Syrian crisis.”

According to an assessment by the Omran Center for Strategic Studies titled: “The General Budget in Syria for 2019: A Tool for Concealing Economic Reality,” there are many factors that have contributed to the collapse of the Syrian pound’s exchange rate, including:

• Collapse of the gross national product.
• Reduction of public revenues.
• Increase in public debt.
• Allocation of resources to military spending.
• Depletion of foreign currency reserves.