Sat, June 15, 2024

Egyptians Put Aside Jewelry and Buy Coins and Gold Bars

Egyptians put aside jewelry and buy coins and gold bars

The impact of the Covid-19 pandemic on the global economy is changing the behavior of many investors. It is especially visible in the interest of precious metals. Besides, other changes are taking place. For example, the citizens of Egypt have stopped buying gold jewelry and are opting for bullion and coins. 

According to Al-monitor, a Middle Eastern information agency, the demand for gold is growing notably in Egypt. The citizens of the country have changed their consumption trends. They have reduced traditional gold jewelry purchases and opted for bars and coins, which allow them to make quick profits. 

Ahmed Abdelaal, an owner of a jewelry company, said that the demand for gold bars and coins from individuals is growing. It is a new phenomenon in Egypt. According to Abdelaal, gold is one of the investment assets that function as a haven. Gold is even better than real estate since it can be sold much easier and fast. There has been a lack of supply of the precious metal due to confinement measures and air traffic suspension. As a result, second-hand gold flooded the local market, and prices have skyrocketed due to growing demand. More and more people are turning to gold bars and coins as an investment.

Demand for Jewelry Decreased by 70% in Egypt

The Covid-19 pandemic has caused a consumer rush towards the precious metal – not just in Egypt, but around the world. 

The country’s merchants are now betting more on ounces of gold instead of jewels.

According to the latest data released by the World Gold Council, demand for jewelry has fallen 70% in Egypt in the second quarter of the year, to 1.7 tonnes, from 6.9 tonnes in the first quarter.

During the first half of the year, the global demand for jewelry fell by almost half compared to the same period of the previous year, due to the global crisis caused by the pandemic.

Egyptian citizens share the taste for owning gold with countries like India or China. Traditionally, it was in the form of jewelry. The new economic situation has displaced jewelry in favor of coins and bars, which are easier to sell.

Regarding jewelry sales, another change in trend that merchants have detected is that traditional 21-karat jewelry sells less than lower-purity silver, such as 18-karat (75.01%).

Some citizens of the country are making quick profits from gold, buying and selling bullion as the price rises. This has allowed some of them to obtain a 10% profit in just two weeks.

However, gold is an ideal investment for the long term, not speculation.

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