Egypt's central bank hosts Iraqi delegation to boost cooperation on fintech, supervision    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    EGP edges lower against USD in early Monday trade    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt joins Geneva negotiations on Global Plastics Treaty, calls for urgent agreement    Egypt, Japan discuss economic ties, preparations for TICAD conference    Egypt's PM tells Palestinian PM that Rafah crossing is working 24/7 for aid    Real Estate Developers urge flexible land pricing, streamlined licensing, and dollar-based transactions    Madinet Masr in talks for three land plots in Riyadh as part of Saudi expansion    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Local gold market suffers from low demand
Published in Almasry Alyoum on 14 - 04 - 2011

With Egypt's gold prices witnessing a sharp increase since the beginning of this year, the demand for gold has dropped considerably.
“The price of gold has soared in line with the price rise of petroleum due to political conditions in Arab countries, especially Libya,” says Abdel Salam Mohamed, Zamalek branch manager of Al-Mawardy, a popular jewelry store with a number of branches in Cairo. He added that the removal of the ban on gold exports has also contributed to the price hike.
The Minister of Trade and Industry Samir Sayyad issued a decree banning the export of gold from 27 February in an effort to prevent corrupt officials and businessmen from smuggling their wealth out of the country.
However, on 10 April, the government lifted the ban early due to increased political stability and the reopening of the stock market, which came after more than seven-week suspension. Originally, the ban was supposed to remain in effect until 30 June.
With exports permitted, the price of 21-carat gold rose from LE227 to LE247, 18-carat from LE194 to LE211 and 24-carat from LE252 to LE281 on 11 April.
Mohamed explains that local gold prices continue to increase due to the heavy investment in gold indexes. “After the unstable political condition in Arab countries, which led to considerable increase in petroleum price, people started to invest their money in gold indexes,” said Mohamed. Consequentially, the uprising that swept Arab nations is considered an aggravating factor in the sharp fall in the demand for gold.
“I always tend to transfer money to gold because its price is continuously rising,” says Tahany Ismail, a housewife who used to buy gold as an investment because it provides her a sense of security in case she faces cuts in family earnings.
Ismail believes that this is the best way to make a small amount of money grow to significant sum over time. However, she has refrained from buying gold during the recent period because prices are high, she says.
The shabka (wedding ring) cost has also been affected by rising prices. “Most clients come to ask about wedding ring prices because they are constrained by a tight budget due to financial circumstances,” says Sherif Antoun, a jeweler.
“A bride could buy a 24-carat shabka at a reasonable price ten years ago. But now two simple gold wedding rings cost a lot,” says Hussein Abdel Hamid, a 28-year-old employee in computer company. “I hope that after the revolution, prices will decrease because marriage expenses and dowries are already a burden on young people who want to get married.”
Antoun says that another factor contributing to the low demand in gold is that wealthy women prefer a diamond wedding ring instead of gold shabka.
Nevertheless, despite the recent high prices of gold resulting from a lift of the export ban, Mohamed sees that renewing international trade in gold with Egypt will have a positive impact on Egypt's economy in the long run.
Egypt's gold market was paralyzed over the last couple of months, as most of the materials used in manufacturing chic gold ornaments are imported from abroad.
“The gold prices will not be stable until the current situation in Arab countries stabilizes,” said Mohamed. “Hopefully, it won't witness a further rise.”


Clic here to read the story from its source.