Gold Remains a Safe Haven for Egyptians Amid Market Fluctuations

Despite repeated fluctuations in gold prices, demand for gold in Egypt remains strong, as many citizens continue to view it as both a symbol of wealth and a safe way to protect their savings.

Ehab Wassef, head of the Gold Division at the Federation of Egyptian Industries, said Egypt’s gold market has witnessed a noticeable increase in activity in recent weeks. He attributed the rise in gold prices to several factors, including global economic conditions, political instability, and the growing demand for gold by institutions and central banks.

“At the moment, there are many reasons for the increase in the price of gold,” Wassef said. “The main reasons are the effects of the world economy, political instability around the world, and an increase in institutional and central bank gold purchases.”

Wassef explained that gold prices in Egypt are usually affected by international gold prices, as well as currency exchange rates, which directly influence local pricing. He added that more Egyptians now view gold not only as a luxury product, but also as a long-term investment and a way to preserve wealth.

For local gold traders, the continued demand reflects a wider change in how people think about saving. Sherif Mohamed, a seller at Al-Futtaim Jewelry and Bullion, said many customers now prefer gold because they believe it keeps its value better than cash during periods of inflation.

“People are now realizing that saving in real value, gold, is more beneficial since cash loses value each day because of inflation,” Mohamed said.

According to Mohamed, purchasing behavior differs between customers. Men, he said, often prefer gold bars for long-term investment, while women usually buy jewelry that can be worn and also kept as an investment. He added that sales often increase during the summer because of holidays, weddings, and social occasions.

Ehab Abdel Aziz, manager of Mahmoud Hiba Gold Jewelry Store, said gold prices had recently increased by about 60 Egyptian pounds in one day. He said 21-karat gold was selling for around EGP 6,660 per gram, while the buying price was around EGP 6,620 per gram.

Abdel Aziz explained that when prices rise, many people rush to buy gold because they expect further increases. When prices fall, others see it as a good opportunity to buy. However, he said demand for newly manufactured jewelry has declined because of higher manufacturing costs, pushing many consumers toward used gold, scrap gold, or bullion.

He added that customer behavior has changed significantly compared to previous years. In the past, many people bought gold mainly for personal use or social occasions. Today, more customers are buying it as an investment, especially as economic pressure encourages people to look for assets that can hold value over time.

Abdel Aziz noted that local gold prices generally move in line with international gold prices, although there can sometimes be a price gap between local and global markets because of currency exchange rates and market conditions.

Between its traditional role in Egyptian society and its growing importance as an investment tool, gold continues to hold a special place in the local market. For many Egyptians, it remains more than a decorative item. It is a way to save, protect wealth, and face uncertain economic conditions with a sense of security.