9 Tons Of Gold Bullion And Coins Are Bought Over Five Months As A Safe Investment In Kuwait

It is reported that Kuwaitis and residents have purchased 9 tons of gold coins and gold works over the past six months, which is the same amount as what they purchased in the first half of 2021, but the customers prefer bullion and coins as safe investments over works that are treated as decoration.

Kuwait's purchases of gold during the first half of 2022 accounted for 23.3%, or 2.1 tons, according to a local Arabic daily, while the works made up 76.7% of the total gold purchases.

The combination of global geopolitical factors and economic variables, along with high inflation rates and successive increases in interest rates by the US Federal Reserve, have made the dollar more attractive and increased the tendency to save as a result. In Kuwait, this led to an increase in the purchase of bullion and gold coins, which reached its peak from April to June 2022, a period during which the purchase of gold coins and bullion increased by 37.5%. Although the first half of this year showed a decline in gold jewellery purchases, the same factors played a role. After a decline in purchases in the first quarter, they soared again in the second.

Kuwait purchased 2.1 tons of gold bullion and coins in the first six months of this year, up 11% from the same period in 2021, with a volume of 200 kilograms.

Comparatively, bullion and coin purchases increased by 100 kilos from April to June 2022, recording 1.1 tons as opposed to 1 tons during January-March 2022.

As a result, bullion purchases in the first quarter of this year decreased by 9%, equivalent to 100 kilos, from 1.1 tons in the same period of 2021 to 1 ton in the second quarter of 2022, whereas purchases by citizens and residents increased by 37.5%. During the second quarter of 2020, bullion and gold coins increased by 300 kilograms to 1.1 tons, compared to 800 kilograms in the second quarter of 2021.

Between January and June 2022, Kuwait's purchases of handicrafts decreased by 3%, equivalent to about 200 kilograms, reaching 6.9 tons, down from 7.1 tons during the same period in 2021.

Gold jewelry purchases decreased by 300 kilograms to 3.1 tons in the first quarter of 2022, compared to 3.4 tons during the same period of 2021. Kuwait imported about 3.8 tons of artefacts in the second quarter of 2022, up from 3.7 tons in the same period of 2021.

The daily calculates that Kuwait purchased 181.6 tons of gold between 2010 and June 2022, including 33.6 tons of bullion and gold coins, and 148 tons of handicrafts.

Kuwait has imported about 1.5 tons of gold per month since the beginning of 2022, or about 50 kilograms per day, while the monthly average for the total volume of gold since 2010 is about 1.2 tons.

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