By Ghadeer Ghloum

KUWAIT: Throughout history, it has been proven that gold has a special value. To take a closer look at Kuwait’s gold market in terms of investing, trustworthiness, people’s preferences and challenges, Kuwait Times interviewed Abu Mahdi, owner of a gold shop in Mubarakiya, and Abu Hashem, manager of a gold store in Hawally, to learn more about gold sales post-COVID and the new hallmark.

Trust in gold Abu Hashem said gold witnessed huge demand during and after the COVID pandemic, because people realized that gold prices had increase drastically, from KD 12 per gram to KD 17 per gram. So, there is a difference of KD 5-6 per gram, which is not a small amount. People started trusting gold and realized they must keep some gold to secure their future. As a consequence, sales rose during this period until today, although gold was cheaper before the pandemic.

Abu Hashem

Abu Mahdi said being a gold seller since 2010, he sees people in Kuwait have always trusted gold, because losses and cheating in gold is very limited, especially in Kuwait, as the ministry of commerce is taking very good care of this issue. It checks gold pieces very well and it goes through a trustworthy process. Hallmark challenges Regarding the new hallmark, Abu Mahdi and Abu Hashem had different reactions. Abu Hashem complained that after the new stamp appeared, it brought up many problems, because people started doubting the products they have in their stores, worrying whether the gold pieces are fake or not.

Abu Hashem said he has been selling gold stamped more than 20 years ago and has not faced any mistrust as he did after the new stamp, as people always have questions regarding the new hallmark. However, he said at the end of the day, he has his own clients who trust him on the genuineness of the gold pieces more than the new stamp, which keeps his work going regardless of obstacles. On the other hand, Abu Mahdi said the new seal barely affected his business, because the Kuwait market is a trustworthy market and cheating is almost nonexistent due to the excessive care and responsibility by the ministry of commerce. Another thing that prevented Abu Mahdi from struggling with the new hallmark is that like Abu Hashem, Abu Mahdi’s costumers trust him.

KUWAIT: A jeweler displays gold bracelets and necklaces at his shop in downtown Kuwait City on March 04, 2023.— Photos by Yasser Al-Zayyat

He also said that in case of fraud, buyers can always go to the ministry and find a solution to their problem with the gold seller. Abu Mahdi elaborated the new hallmark is very good and even better than the old one, because the old one used to take space from the gold piece and could ruin part of its beauty, whereas the new seal is simple and is done by laser, which can be placed on small pieces of gold without ruining their shape or design. Changing the new stamp is mainly to improve it and avoid problems that appeared due to some criminals who copied the old stamp to sell people fake gold.

What makes gold special? Abu Hashem said what makes gold more special when it comes to investing is that it is known as a safe haven compared to other types of investments. “Stocks might lose their value and you will be left with only a few papers that can barely do anything for your benefit. However, gold is tangible; you can hold it with your hands and keep it wherever you find suitable, which keeps it under your control. That is why businessmen make sure to keep their money in gold, because when their companies lose, they sell their businesses and buy gold instead, especially since its price increases more and more by time,” he said.

Additionally, Abu Mahdi said gold is one of the most popular precious metals ever and people love it for its beauty and flexibility, as it can be used as a wearable accessory that reflects wealth. Besides, is has a stable price that is agreed upon globally and keeps increasing by time. “So it is normal that people like to boost their financial income and secure their future, so they head towards gold,” he said. What kind of gold people buy? Both Abu Hashem and Abu Mahdi said some people buy gold for investment, while others buy it for wearing it or for giving it as gifts. Abu Mahdi advised people must save their money by buying gold and not keeping it in their bank accounts or as cash, even if the amount is not big, because money loses its value over time, while gold gains value.