30% Price Shock: Gold Hits $4,350; Mauritians Face Massive Jewellery Hikes

Mauritian consumers are facing a surge in the price of jewellery, with costs reportedly increasing by approximately 30% this year following a dramatic spike in the global gold price.

The precious metal has rocketed past $4,350 per ounce on the international market in October 2025—a rise of more than 50% in a year—fuelled by worldwide inflation and geopolitical tensions. This has had direct repercussions for jewellery prices in Mauritius.

Budget Strain Forces Purchase Changes

Jewellers report that the price hike is impacting consumer behaviour, with a noticeable drop in sales observed in recent months.

However, gold remains highly valued, central to Mauritian culture and family traditions such as weddings and engagements.

To manage escalating costs, Mauritians are adapting their purchases to fit their budget and priorities.

Many are now opting for lighter pieces containing fewer grams of gold, turning to 18-carat jewellery—which is less costly than pure gold—to maintain tradition without compromising their finances.

Sadhna Sokhal, director of Legem jewellery and president of the Jewellery Advisory Council, confirmed the trend, noting, “We have observed significant peaks [in the price of gold] recently… an increase in the price of the raw material translates into a rise in the price of jewellery.”

Ashraf Bordie, director of Bordie jewellery and president of the Manufacturing Jewellers Association, echoed this, acknowledging that while the overall demand is affected, families still buy essential items like wedding rings due to the metal’s deep-rooted cultural significance. Jewellers are responding by adapting collections to offer finer and lighter models.

Comparison of Jewellery Prices in One Year

These are a few of the prices charged in jewellery shops in Mauritius.

Prices vary according to the model.

On average, you should expect a general increase of 30% on jewellery prices compared to last year.

Further Price Rises Predicted

Further increases in retail prices are expected following a change in Value Added Tax (VAT) rules in October 2025.

The mandatory VAT registration threshold was lowered from an annual turnover of Rs 6 million to Rs 3 million, bringing more jewellers into the system.

Ms Sokhal warned that this measure, alongside the ongoing gold price increase and added administrative burdens, is “likely that the prices of jewels will increase even more.”

Consumers could begin to feel the effects within two to three months, according to industry sources.

Timeline of Gold Price Surge (Price per ounce):

• October 2023: Approximately $2,000
• April 2024: Surpassed $2,400 for the first time
• March 2025: Exceeded $3,500
• October 2025: Reached a historical record of $4,350

Source: Defi Media