By Majd Othman

KUWAIT: Investing in gold is the best way for people to be financially safe, as it helps them face any crisis in the future. Kuwait Times has visited gold shops and asked about the demand for gold among local customers for saving purposes. "People always buy gold despite the price changes, as it is the best way to secure themselves. Even if the prices are high, they buy and sell it later when prices get higher," Romany Ayyad, an employee at a gold shop, told Kuwait Times.

"Due to global financial concerns, people are spending less on gold jewelry, while earlier they were spending big amounts for gifts and personal use. Today customers are spending more on gold coins and bars," he said. "After recent political and economic crises, demand for gold increased almost 15 percent among expats, especially after the value of currencies dropped in some Arab countries," Ayyad said.

Mohammad Sameer, a gold shop owner, said people feel safer when they buy gold. The number of buyers has increased by more than 25 to 30 percent, especially among citizens. "Demand is more for 21 karat gold, coins and gold bars," he said. "Around 70 to 80 percent of customers are focusing on buying and selling gold or spending more on coins and gold bars," said Zakariya Ali, an employee at a gold shop, affirming that most demand is for 21 karat gold, especially among expats.

While gold shops confirmed the increase in demand, some customers have been affected by the rise in gold prices. Amal Al-Otaibi, a customer, told Kuwait Times that she regrets not buying gold for saving purposes after prices rose in the last few years and today are higher than before. "Most of my friends sold gold for high profits. The price of gold today is KD 17 per gram, while before it was only KD 3!" she rued. Otaibi said the current gold price does not encourage her to buy for saving purposes.

Another customer, Noura Al-Najjar, said: "I started to buy gold in the last couple of years. I don't mind buying now for saving, especially with the current financial worries. Instead of spending money on other things, it's better to save money in gold. Prices are rising, which encourages me to buy. Buying and selling gold is the safest investment and achieves good profits."

"The current gold price does not match the quality of the pieces of jewelry," said Safaa Al-Suhaili, another customer. "Prices for workmanship have increased too much, which affected demand for people who want to buy and save." Suhaili said that she doesn't see a necessity to buy gold, stressing that it is a cultural matter for some people, and a rising trend among some nationalities. "Due to current high prices, I will not buy gold for saving," she added.

Salah Al-Jemaz

Despite the changes in gold prices, Financial Expert and Advisor Salah Al-Jemaz told Kuwait Times about the reasons why people should invest their money in pure gold. "Pure gold fights inflation. When currencies fall, precious metals rise. Money needs a store, and gold is the best store for money. Its value never decreases. Pure gold is always on a continuous rise. As long as gold is a rare item, its price will always keep rising. Gold is like an insurance policy for all situations," he said.

"What distinguishes gold from other metals is its rarity, which increases its value, especially since it has no expiry date and can't be copied or faked, like pearls or cash. This is the reason why banks all over the world stock pure gold, and people should do the same," Jemaz added.