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Thursday , October 1 2020

Kuwait witnessed great demand for gold despite increased prices

‘Further recovery seen in volatile Gulf’

A shop in the gold and jewellery market displays various kinds of ornaments

KUWAIT CITY, Jan 5: Despite the high prices of gold in the global market, Kuwait’s gold and jewelry market witnessed a great demand coinciding with the end of 2019 and the beginning of 2020, compared to the same period last year, reports Al-Anba daily. The viewpoints of the gold and jewelry traders varied in this regard.

In separate interviews with the daily, majority of them said the market is witnessing a boom on the holiday of the New Year’s Day and an increase in the demand for buying gold with the aim of presenting them as gifts on this occasion. They noticed a boom in the sale of manufactured gold coins and light alloys weighing between 5 and 10 grams. Traders are expecting a further recovery in the market, supported by an improved economy, stable oil prices, and the fact that gold represents a safe haven for money, especially with expectations that gold prices will rise in the future due to the tense political events in the region. Some said the prices increased by 18 percent in 2019, an increase that was not seen since 2010. They indicated that the current competition among the gold traders in the local market is more on the quality of crafts than the prices. They also affirmed that Kuwait is currently one of the major exporters of gold jewelry in the region.

Jewelry dealer Nasser Abdul Mohsen Al-Sayegh said the gold and jewelry market in Kuwait witnessed a great demand from citizens and residents to purchase at the end of 2019 and the beginning of the year 2020, despite the high prices of gold in global markets. He attributed this demand to the celebration of the end of the Gregorian year and the giving of gifts during this period by purchasing gold coins, namely the lira and light alloys that weigh 5 and 10 grams, or gold jewelry.

Al-Sayegh said there was higher demand for 21-carat gold and diamonds inlaid with precious stones, noting that the demand for buying during the year 2019 was better than the year 2018. He added, “It is noticeable that many citizens went to buy bullion besides gold jewelry, with the aim of investing in this yellow metal because it is considered as a safe haven for investors.” Al-Sayegh explained that it is common to buy lira gold gifts on the occasion of Christmas and other such occasions.

Citizens present gifts in the form of coins equivalent to 5 liras and equivalent to 2.5 liras on wedding occasions. Meanwhile, CEO of Alloys Group and an advisor to the Kuwaiti Federation of Gold and Jewelers Rajab Hamid said gold prices increased by 18 percent in the year 2019 after a long gap since 2010.

He explained that the second half of the year 2019 witnessed high gold prices, which resulted in a decrease in the sales of gold jewelry and an increase in the sales of gold bullions purchased for the purpose of investment. Despite this, citizens prefer to buy the yellow metal. The competition currently between traders in the local market is on the quality of artifacts and not on price.

There is an increase in the weight of gold jewelry stamped by the Ministry of Commerce and Industry during the last quarter of 2019. Hamid said he is expecting an increase in the demand for buying gold during the year 2020 despite the high gold prices, because gold is no longer a luxury item but rather an investment, adding that Kuwait is one of the major exporters of gold jewelry in the region

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