Gold prices doubled over five years: World Gold Council

Shaimaa Al-Aees
4 Min Read

John Reade, Chief Market Strategist for Europe and Asia at the World Gold Council, has announced that gold prices have seen a remarkable surge, doubling over the past five years since 2019. He emphasized that this trend is independent of the dollar’s value.

During the “Gold As An Asset Class and Financial Instrument” press conference on Monday, Reade highlighted that the price per ounce globally has risen by an estimated $250. This increase is attributed to the fallout from various global crises, ranging from the COVID-19 pandemic to the ongoing Russian-Ukrainian conflict.

Reade underscored gold’s resilience as a commodity, contrasting it with more volatile goods like wheat and oil. He revealed that approximately 220 tonnes of gold were extracted in the last year, spurred by heightened demand and trading activity among central banks and gold investment entities.

The strategist also noted the significant growth in the Egyptian gold market in 2023, stating: “Gold serves as a beacon of stability amidst market fluctuations and is a valuable investment asset.”

He further explained that emerging markets, particularly India and China, have seen a surge in gold production and trade, now accounting for half of the global gold market share—a stark shift from the US dominance in the 1980s.

Reade anticipates substantial increases in gold prices soon, citing the consistent purchasing by central banks as a driving factor.

He pointed out the particularly strong demand for gold in China and Turkey, which is intensifying amid global political shifts.

“We urge investors to incorporate gold into their financial and investment portfolios and to seek diversification. The Council is dedicated to enhancing investor education about gold’s significance. Gold not only diversifies but also stabilizes financial portfolios. Furthermore, any reduction in U.S. interest rates is likely to have a favourable impact on gold prices,” Reade advised.

He also mentioned the dynamic role of gold as an investment vehicle within the Egyptian market, as evidenced by its robust presence in the financial portfolios of institutions.

Andrew Naylor, Regional CEO for the Middle East and Head of Public Policy at the World Gold Council, reported a sixtyfold increase in gold trade within the Turkish market in 2023.

Naylor remarked on Egypt’s storied connection with gold, noting a substantial rise in the country’s capital market, in tandem with India’s market growth, reflecting a strong intermarket relationship.

He observed that gold trading in Egypt has made significant strides, becoming a traditional savings medium for numerous Egyptian households.

Sameh Eltorgoman, Founder and CEO of Evolve Investment Holding, expressed his company’s ambition to collaborate with the World Gold Council to enhance Egypt’s gold market infrastructure and foster integration with international markets.

Eltorgoman asserted that Egypt possesses all the necessary elements—from consumer interest and metal availability to investment demand—to emerge as a key player in the African gold market.

He shared Evolve’s vision, in partnership with the World Gold Council, to aid in the advancement of Egypt’s gold markets and their incorporation into the global marketplace.

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