Gold jewellery exports from Turkey, the world's No 2 exporter, fell by just over a quarter in the first four months of 2006, the Turkish Association of Jewellers (TAJ) said on Friday.
Exports fell 26.3 percent to 26.158 tonnes in January-April, down from 35.493 tonnes in the same period last year. Gold jewellery exports also fell in dollar terms, with gold jewellery bringing in $295.1 million in January-April versus $301.9 million. High and volatile bullion prices were hurting merchants' sales.
"The price rises are curbing gold jewellery demand. People are tending to buy coins and bars instead of jewellery," Cetin Binatli, a board member of Turkey's biggest jewellery maker Goldas, told Reuters.
Spot gold prices have soared 40 percent since the start of the year, hitting their highest since January 1980 at $730 an ounce on Friday.
Binatli said demand from manufacturers was still high as they were busy producing for the tourist season. Sales of gold jewellery to Turkey's top three export destinations - the United States, the United Arab Emirates and Italy - fell by 33, 34 and 21 percent respectively during the first four months of the year.
Overall jewellery exports, including silver and pearls, rose nearly 8 percent in value terms and nearly doubled in volume to 384.97 tonnes from 197.77 tonnes.