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Kuwaitis and residents in Kuwait buy gold worth 1.23 billion dinars in 2023

Kuwaiti citizens and residents bought about 19.6 tons of gold jewelry, bullion, and coins in 2023, with a value amounting to about 1.23 billion dollars (376.3 million dinars, at an exchange rate of 306 fils to the dollar), with an average price per kilo reaching 19.2 thousand dinars during the same year.

Data from the World Gold Council showed that purchases of gold by citizens and residents increased by 3.7%, with a volume of 700 kilograms, to reach 19.6 tons during 2023 compared to 18.9 tons during 2022, in light of a noticeable increase in purchases of gold bullion, which is usually classified as the first savings and hedging tools before gold jewelry which is classified as “ornament and treasury”, reports Al-Anba daily.

While the data shows that there is an increase in the volume of gold purchases during the whole of 2023, the most prominent purchase incentives are represented by a number of economic and geopolitical variables that can be listed as follows:

  • Geopolitical events: The escalation of geopolitical events in the region and their global repercussions prompts individuals to increase their holdings of the yellow metal to hedge against the future, and to preserve the value of their savings in anticipation of any developments.
  • The rise in gold prices: The price increases achieved by the yellow metal during 2023 were a great incentive for citizens and residents to acquire the yellow metal, as they aimed to maximize the value of their savings, which is clearly evident in the noticeable increase in bullion sales.
  • Inflation rates: The high inflation rates that many countries of the world are experiencing have made their citizens resort to acquiring gold as one of the hedging mechanisms through which they preserve the value of their savings.
  • Interest rates: The trend of the US Federal Reserve and central banks around the world to ease the severity of the monetary tightening policy would increase the attractiveness of gold to achieve higher rates of profitability.

In detail, the total purchases of gold jewelry by citizens and residents during 2023 decreased by about 2%, amounting to 300 kilograms, after their purchases at the end of the year recorded a level of 14.4 tons, compared to 14.7 tons during 2022.

During the same year, the period from January until the end of March 2023 recorded a decline in gold purchases by 100 kilograms after reaching the level of 3 tons, compared to 3.1 tons in the same period in 2022.

In the second quarter of 2023, gold purchases by Kuwaiti citizens and residents increased by 400 kilograms after reaching 4.2 tons, compared to 3.8 tons at the end of the second quarter of 2022.

The third quarter of 2023 witnessed a decline in gold purchases by citizens and residents by 600 kilograms, after their purchases in the period from July until the end of September amounted to 3.4 tons, compared to 4 tons in the same period in 2022. This comes while the fourth quarter of 2023 witnessed no change from the similar period. From 2022, both stabilized at the level of 3.8 tons of artifacts.

In contrast to gold jewelry bullion purchases by Kuwaitis and residents increased by about 23.8 percent or about 1,000 kilograms in 2023, bringing their total purchases to about 5.2 tons, compared to 4.2 tons in 2022.

The data showed that the period from January until the end of March 2023 witnessed an increase in bullion purchases by 100 kilograms to reach 1.1 tons, compared to one ton in 2022.

During the period from April until the end of June 2023, it increased again by 200 kilograms to reach 1.3 tons, compared to 1.1 tons for the same period in 2022.

In the third quarter of 2023, bullion rose again by 300 kilograms to reach 1.5 tons, compared to 1.2 during the period from July to September 2022.

During the last quarter of 2023, purchases of bullion by citizens and residents increased by about 400 kilograms, reaching 1.3 tons, compared to 900 kilograms during the period from October until the end of December 2022.

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