Soaring gold prices hit consumption, imports in Nepal

Kathmandu, Aug. 17: Nepal has witnessed a steep decline in gold imports and local consumption over the last fiscal year, as record-breaking global prices of the precious metal have stunned the domestic market.

According to the annual trade statistics released by the Department of Customs, the country imported just 1,622 kilograms of gold between mid-July 2024 and mid-July 2025 — a significant 45 per cent drop compared to the previous fiscal year.

In the fiscal year 2023/24, Nepal had imported 2,909 kilograms of gold. The total value of gold imports also fell by 23.15 per cent, from Rs. 25.95 billion in 2023/24 to Rs. 19.94 billion in the last fiscal year 2024/25.

The decline in imports also impacted government revenues. The government collected Rs. 2.25 billion in revenue from gold imports in 2024/25, down from Rs. 4.02 billion in the previous fiscal year.

The demand for gold in the local market has reduced significantly in the last fiscal year due to increase in its price, said gold trader Tej Ratna Shakya.

Due to sluggish economic activities, the income of people has decreased which has resulted in the reduction of their purchasing power, and this has affected the gold business badly, Shakya said.

 “Gold imports have declined by about 50 per cent in the last fiscal year compared to the previous one. This significant drop reflects how badly the gold business has been affected,” he told The Rising Nepal.

“This has also had a direct impact on government revenue.”

According to Shakya, the Nepal Rastra Bank (NRB) permits commercial banks to import up to 20 kilograms of gold daily, amounting to a potential annual import of 7,200 kilograms. However, the actual import fell far short of this allowance, he said.

He said that an average price of gold has surged by Rs. 50,000 per tola in last year. The price of gold has almost been reached Rs. 200,000 per tola in the local market.

Earlier, on August 8, gold price reached record high at Rs. 199,400 per tola. 

In April, 2025, gold price reached almost of USD 3,500 per ounce in the international market.

He said that the price of gold has been skyrocketing in the international market due to the political unrest in the global communities and new steps taken by President of United States of America Donald Trump. 

The demand for gold has been declining continuously in the local market due to price hikes, he said.

The gold import had dropped to 2,909 kgs in 2023/24 from 3,507 kgs in 2022/23.

Silver imports surge as consumers seek alternatives

While gold imports have taken a hit, silver imports saw a significant rise during the same period. 

According to the Customs, about 50,000 kgs of silver worth Rs. 7.02 billion was imported in the fiscal year 2024/25. 

The import of silver increased by 57 per cent in terms of quantity and 114 per cent in terms of value in the last fiscal year as compared to previous 

fiscal year.

In fiscal year 2023/24, around 31,889 kgs of silver worth Rs. 3.28 billion had been imported.

“The demand for silver increased as consumers turned to more affordable alternatives amid the soaring gold prices,” Shakya explained. However, he added that silver prices have also been on the rise, although not as dramatically as gold.

The price of silver reached Rs. 2,350 per tola in local market.

He said that the significant increment of gold price in the local market has affected the market at present and would severely affect even in the upcoming major festivals.

"Teej, Dashain and Tihar are the main seasons for gold trading. Due to the price increase, gold trading is sure to be affected in the upcoming festivals. It will cause problems for traders and consumers as well," he said. 

“Normally, a large number of people buy gold from their savings after meeting all their other needs, including food and clothing. However low income has made it difficult for the consumers even to meet their daily requirements. In this situation, they are unable to buy gold,” he said.