Gold purchases hit 1.23 billion dinars

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KUWAIT CITY, Feb 3: In 2023, Kuwaiti citizens and residents collectively invested 1.23 billion dinars in gold, acquiring approximately 19.6 tons of gold jewelry, bullion, and coins. The World Gold Council’s data reveals a 3.7% increase in gold purchases, with volumes reaching 19.6 tons compared to 18.9 tons in 2022. Notably, the average price per kilo surged to 19.2 thousand dinars during the year.

Several factors contributed to the significant rise in gold acquisitions such as:

Geopolitical Events: Escalating global and regional geopolitical tensions prompted individuals to use gold as a hedge against future uncertainties, preserving the value of their savings.

Gold Price Increases: The considerable uptick in gold prices throughout 2023 motivated citizens and residents to invest in the precious metal, aiming to maximize the value of their savings. Bullion sales saw a noticeable increase.

Inflation Rates

High inflation rates worldwide led individuals to turn to gold as a hedging mechanism, safeguarding the value of their savings.

Interest Rates

The global trend of central banks, including the US Federal Reserve, easing monetary policies increased the attractiveness of gold for achieving higher profitability.

Breaking down the data for 2023 — Gold Jewelry Purchases: Decreased by 2%, totaling 14.4 tons compared to 14.7 tons in 2022. Q3 2023 witnessed a decline, while the last quarter remained stable at 3.8 tons.

Gold Bullion Purchases — Increased by 23.8%, reaching 5.2 tons compared to 4.2 tons in 2022. Bullion purchases saw consistent growth across all quarters, with a total of 1,000 kilograms added in 2023.

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