Gold prices have doubled over the last five years: World Gold Council

WGC chief market strategist highlights growth in the Egyptian gold market, citing that the price per ounce globally has risen by an estimated $250

CAIRO: John Reade, chief market strategist for Europe and Asia at the World Gold Council,  has announced that over the last 5 years, gold prices have witnessed unprecedented growth. During the “Gold as an Asset Class and Financial Instrument” press conference on April 22, 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.

While drawing comparisons with other volatile goods, Reade emphasized the resilience of gold as a commodity. He revealed that approximately 220 metric tons of gold were extracted in the last year, spurred by heightened demand and trading activity among central banks and gold investment entities.

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

While citing the rise in demand in US and Turkish markets, which has ignited amidst global political shifts, Reade says, “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. Furthermore, any reduction in U.S. interest rates is likely to have a favorable impact on gold prices.”

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.

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.

Courtesy: Daily News Egypt