KUWAIT CITY, July 21: It is no longer realistic that gold is regarded the safe haven of investors, considering Kuwait recently witnessed an illegal profit in the gold trade, which is plagued by suspicions of money laundering, foreclosure or sale by installments in a manner that competes with banks in interest rate- despite efforts of the security and monitoring authorities at the Ministries of Interior and Commerce to control sale, purchase and money transfer processes, reports Al-Rai daily.
Subsequent to reports about such operations in the gold market in Kuwait, which used to be recognized for the years of honesty, credibility and professionalism, Al-Rai toured the gold markets in several regions.
A respondent identified as Abbas Ali said “We hear that some shops sell gold in installments, and most of their customers are women, and the interest rate is between 5 to 10 percent. Most of the shops are in Jahra, Jleeb Al-Shuyoukh and Fahaheel, as we hear.”
For his part, trader Nasser Yahya said the women of Kuwait earlier traded and invested in the “Antares” (Al-Nerah) which used to cost KD1 in the seventies, but only one piece is now sold for KD85. He said investment in gold still prevails to the point that one kilogram of some types is worth KD12,300. He reiterated the gold trade may not be free of money laundering operations, which can be conducted in any other trade but only a few people who rebel against the law do so.