Kamaaina Metals and Jewelry is closing its doors in Pearl City on Christmas Eve after nearly 40 years in business.

Owner Ray Rapalee said the jewelry store has struggled in recent years as the price of gold plunged more than $800 to $1,060 an ounce from its peak of nearly $1,900 in 2011. Meanwhile, construction of the state’s first mass transit system — six to seven months behind schedule — on Kamehameha Highway has affected the number of customers coming to the shop during one of the busiest times of the year, he said.

“We’re old and the rail certainly isn’t helping,” said Rapalee, the store’s third owner, who has held it for 14 years. “We’re now in the biggest season of the year — the two weeks before Christmas — and people can’t make a left turn off Kamehameha Highway onto Kaahumanu Street to come find us.”

The company’s profits have dramatically declined in recent years.

Gross revenue dropped to about $1.3 million this year — almost the same as total expenses — from $3.7 million in 2011, while net income fell to $11,680 year to date from $175,000. Meanwhile, rent remained steady at more than $100,000 a year, not including electricity and other operating costs.

The store generated $307,466 year to date from the sale of gold, coins and precious metals, while refinery sales — the melting of gold — totaled more than $800,000.

“I’m 72 years old. I don’t need the stress of trying to generate $1.3 million and getting to keep $1,000 a month,” he said. “The economy isn’t getting better. You’ve still got people coming in every day trying to sell their jewelry to pay rent and to pay their phone bill. How bad does the economy have to be for you to sell your wedding ring in order to eat?”

Rapalee put the business on the market two years ago but was unable to find a buyer. When prospects saw the overhead costs, “they didn’t even attempt to make an offer whatsoever.”

“Hawaii’s bad for business,” he said. “With the cost of electricity and the cost of the rent, no one — not one — went beyond that point.”

The store at 98-1254 Kaahumanu St. in the Times Supermarket complex is run by Rapalee, wife Sherrie and their son, David. A year ago they had three employees besides the family, but one by one they left the company.

“We certainly appreciate the support of the people that have been coming through our doors for the last 14 years,” Rapalee said. “We are definitely sad that an institution that has been a part of Hawaii for 40 years has to close its doors. It’s a very sad time.”