Egypt is witnessing a significant surge in digital gold investment, driven largely by younger investors, as changing consumer behaviour and growing financial awareness reshape the domestic gold market, according to Saied Embaby, CEO of iSagha, the online gold and jewellery trading platform.
Citing data from the Financial Regulatory Authority (FRA), Embaby said individuals under the age of 40 account for more than 80% of investors in Egypt’s gold funds, highlighting a notable shift in the investment preferences of younger generations.
He noted that the net assets of gold investment funds reached a record EGP 9.28bn by the end of March 2026, spread across nearly 289,000 investment accounts, reflecting strong growth in both investor participation and demand for gold-linked financial products.
According to Embaby, individual investors represent around 72% of all gold fund accounts, compared with 28% held by institutional investors. He attributed this trend to rising financial literacy, increasing adoption of digital investment channels, and growing confidence in gold as one of the safest tools for saving and preserving wealth.
The iSagha CEO added that strong demand for gold funds has been supported by their recent performance. Precious metals funds delivered the highest returns among all investment fund categories in the Egyptian market during the first quarter of 2026, generating gains exceeding 20%.
“These returns have significantly enhanced the attractiveness of gold funds, particularly among younger investors seeking flexible, secure, and accessible investment opportunities,” Embaby said.
He added that market observations indicate a marked transformation in Egyptian consumer behaviour over the past five years. While gold was traditionally purchased primarily for adornment, it is increasingly being acquired as a savings and investment instrument, especially amid economic uncertainty and rising prices.
According to Embaby, higher gold prices have encouraged many consumers to favour gold bars and sovereigns over jewellery due to their lower manufacturing costs, greater liquidity, and stronger value-retention characteristics.
This shift has also altered demand patterns within the market. Embaby noted that 24-carat gold, commonly used in bars and investment products, has become the most sought-after category, surpassing 21-carat gold, which has historically dominated jewellery purchases in Egypt.
He stressed that both local and global gold markets are undergoing a structural transformation as confidence in the precious metal continues to strengthen as a vehicle for savings, hedging, and wealth preservation.
Embaby pointed to rising investment demand from both central banks and private investors as evidence of gold’s growing importance. Data from the World Gold Council showed that central banks resumed strong net gold purchases in April, acquiring a total of 17 tonnes and reinforcing the long-term outlook for the precious metal.
He said these purchases offset the temporary impact of limited selling activity recorded in March, adding that the overall trend remains supportive of gold prices as countries continue to diversify their reserve assets amid persistent inflationary pressures, economic uncertainty, and geopolitical risks.
According to Embaby, the National Bank of Poland was the largest central bank gold buyer in April, adding approximately 14 tonnes to its reserves and bringing total purchases since the start of 2026 to around 45 tonnes. Meanwhile, the People’s Bank of China increased its holdings by nearly eight tonnes, while the Czech National Bank extended its gold-buying programme for the 38th consecutive month.
Commenting on recent discussions surrounding proposed amendments to Egypt’s Value Added Tax (VAT) Law affecting the gold and silver sector, Embaby stressed that both precious metals remain fully exempt from VAT and that no new taxes have been imposed on their underlying value.
He explained that the existing tax applies only to manufacturing charges and production-related services and does not affect the value of the gold or silver itself.
Embaby also reassured consumers that the proposed amendments would not result in exceptional or unjustified increases in gold prices. He urged the public to verify information from reliable sources and avoid being influenced by rumours or inaccurate reports regarding developments in Egypt’s gold and silver markets.
