Sales of gold and jewelry in Kuwait jumps 65%

Gold price technical analysis 30 - May, 2013

Revived sales of precious metals and precious stones in Kuwait remarkably in 2011, registered a significant increase in demand for bullion and gold and silver increased by 65% ​​compared to 2010, domestic consumption rose from 20 tons in 2010 to 33 tons in 2011.

He estimated the size of the gold and silver artifacts and alloys in 2011 by more than 460 million against 280 million dinars in 2010. It is also interesting that there are more than 4 thousand stores in Kuwait, working in the trade of gold and silver jewelry.

According to official figures obtained by the Arab Times, the external works of gold amounted to 7.2 tonnes and 3.5 tonnes silver jewelry, and 8 tons gold bullion, silver bullion and 8.5 tons and 5.8 tons of precious metals. Recorded a statistical increase in investment gold bullion by% 133, which amounted to 8 tons in 2011 compared to 3 tons in 2010.

Seen by experts and observers in the market for jewelry and precious metals that the political situation in the region and the Arab spring had a noticeable effect to pay people to buy and store gold and investment yellow metal and the flight of a lot of money in search of safe haven.

They pointed out that people choose to buy gold bullion in times of economic uncertainty, they are more efficient in the price when you are having other investment vehicles because of financial circumstances, and the increasing numbers of people every year choose to buy gold bullion because of being one of the most power of investment tools.

They said that it is necessary before buying gold bullion taking the various factors that affect the gold market into account, by monitoring the price of this precious metal, and look at those working to unload their portfolios current of gold, the fact that this contributes to the decline in prices due to increased supply demand.

They stressed that gold prices, despite rising to significant levels, are still acceptable to many, and there is still demand for the yellow metal, an indicator of public confidence in it, and that talk about the possibility of decline in gold prices after the arrival of the record is uncertain in light of the difficult economic conditions present.

Did not hide some observers fear that the rise in gold prices and access to these levels, the standard may be alerted when a crisis, arguing that more than working to buy gold in large quantities are speculators who have specific strategies, are thus quickly working to sell what they bought in anticipation of falling prices, but They will pay the price of individuals and small investors.

Arab spring

The director of precious metals in the Ministry of Trade and Industry Eng. Anzi said Muslim «Arab spring contributed significantly increase the purchase of gold on the grounds that investment yellow metal is the most secure. The lack of stability of the various sectors operating in the global market, whether stocks or real estate or financial institutions, contributed to many resort to gold in search of safe haven ».

He pointed out that conditions and political circumstances in the region have created a kind of fear to many, whether from citizens or residents, who in turn worked to buy gold and store it in anticipation of the future, especially as the price of gold, up which made gold the best door for investment.

On the future of prices, Anzi said «can not determine the direction of gold prices and the prognosis, but in the current circumstances there is no reason to descent in light of the instability that hit world markets and the European crisis and the problems of Arab spring».

He said the demand for gold in Kuwait in 2011 scored big gains, with total sales of jewelry and gold from 20 tons in 2010 to 33 tons in 2011, indicating that the increased demand is not limited to residents who suffer their countries disorders, but also citizens who have worked to buy the metal.

He explained that everyone is able to invest in gold bullion there are different sizes to suit all income levels, calling wanting to buy bullion to the need to get an invoice showing the name of the shop and check the specifications and the Ministry of Commerce through the Department of precious metals to make sure the seals on the alloys.

Asked about the sources of gold bullion, said that Switzerland is the first in the world in the production of gold bullion, and that the UAE is a key player in re-export of gold bullion.

Safe haven

General Manager of one of the companies that deal in bullion, and who requested anonymity, said the demand for buying gold bullion is not limited to only, but many are working to buy jewelery and gold jewelery in order to save for their children and wives in the future. He said it was buying bullion from individuals in Kuwait are Taiwilo-term investors, because the speculative purchasing large quantities need to ensure a profit, but to buy from small ingots weighing 5 or 10 grams, it will not sell it, but after years to gain the expected benefits. He added that the current price of gold rises logically can not be considered unjustified, they are not the result of speculation, as some think, but he went about real yellow metal which is considered a safe haven for many.

Demand for diamonds

For his part, said General Manager Faisal Abdullah Al Faris Jewelry & Sons Engineer Mahmoud Mostafa: The demand for diamonds has increased dramatically over the past period and returned to 2006 levels, and it is expected to witness significant growth in the coming period.

He pointed out that there is a high demand in Kuwait on the sale and purchase Hger diamonds, despite the high value compared to other stones, gold and silver, indicating that the diamond prices recorded notable gains in the last period as a result of increased demand.

He added that there is a schedule of weekly shows that diamond prices depend on the diamond bourse, and is consulted to determine the price, explaining that the diamond evaluation is done through four key criteria, the purity, color and cutting and finally weight, known in English by 4C.He explained that he meant the amount of purity and the number and degree of impurities in a piece of diamond. The purity starts with 13 which is its major impurities. And depends on the quantity and nature of impurities present in it, and diamonds ranging in color from colorless through pale yellow and yellow to gray batsman and black.

He continued that the pieces of the most important determinants of the value of the diamond Hger, Precision, which is where the diamonds affect the beauty and elegance, and therefore in its value. There are several forms of the pieces I would prefer the Full cut, which have a surface 58. There are also different forms of objects, including the baguette and the Marquis and the box and tear, heart, Princess and others.

He advised Mustafa who wish to purchase diamonds need to buy it from places known and reliable. Also willing to buy half carat and more they have to careful on the existence of a certificate approved by the institutes, as well as work on the revision of the Ministry of Commerce, adding that the best sources of diamonds are from Africa, Russia and South America. The most famous places of the pieces are Belgium, China and India.