Egypt just wrapped up its third Nebu Expo for Gold & Jewelry against the backdrop of surging gold prices and heightened demand, even as the country grapples with a shortage of U.S. dollars, currency devaluation, and rampant inflation.
Ehab Wassef, head of the gold industry division at the Federation of Egyptian Industries, highlighted the global spike in gold prices, surpassing $2,000 per ounce, subsequently impacting prices within Egypt. “Recent reports from the World Gold Council indicate that Egyptians purchased approximately 46.3 tons of gold in the first nine months of 2023,” Wassef stated, underlining a significant surge in interest among Egyptian citizens and businesses for both investment and savings purposes.
The expo featured over 150 companies showcasing various gold products, including coins, bars, diverse jewelry selections, and associated machinery and tools.
Tarek Al-Tarouty, CEO of New Egypt Gold, emphasized gold’s reliability as “a safe haven” and “a globally recognized currency” amid economic uncertainties. He attributed the current fervor for buying gold in Egypt, particularly in bars and coins, to the escalating exchange rate of the dollar against the Egyptian pound.
The purchase price for 24-carat gold reached 3,211 Egyptian pounds (approximately $103) per gram as of Tuesday, compared to 1,686 pounds during the same period last year. Similarly, the price of 21-carat gold surged to 2,810 pounds per gram from 1,475 pounds in late November of the previous year.
Egypt’s local currency experienced a significant devaluation over the past year, losing nearly half its value. The dollar soared to an all-time high in November, hitting 50 Egyptian pounds in the parallel market, while the official exchange rate stood at 30.9 pounds per dollar, a stark contrast to about 24.5 pounds in late November 2022 and 18.3 pounds in late March 2022.
Fady Milad Raouf, owner of Minous Gold, attributed the escalating gold prices in Egypt to the soaring dollar exchange rate. “If the dollar exchange rate stabilizes, the gold prices will follow suit,” Raouf remarked.
Despite the market impact of rising gold prices, Raouf saw the Nebu Expo as an opportunity to unveil new products and engage with merchants. “Most gold buyers are currently focused on savings, particularly in gold bars and coins. However, some are now inclined towards crafted gold, seeking both ornamental value and investment,” Raouf explained.
