Gold rush: Why Egyptians are paying sky-high prices for gold

Since the beginning of 2023, gold prices have surged by over 50 percent amid uncertainty in the market regarding the real causes behind these unprecedented rates.

On Wednesday, the per-gram purchase prices of 24-karat, 21-karat, and 18-karat gold amounted to EGP 3,006, EGP 2,630, and EGP 2,254, respectively. On 1 January 2023, prices of 24-karat, 21-karat, and 18-karat gold stood at EGP 1,914, EGP 1,675, and 1,436 respectively, per gram.

On the other hand, global gold prices are relatively stable. Bloomberg’s data show that the price of an ounce has stabilised at $2,016. The per-gram price averages $71.1.

Comparingly, gold prices in Egypt are nearly EGP 1,000 higher than global prices. Ahram Online approached experts to explore the key causes of the surge in gold prices and solutions to mitigate the effect on the gold industry.

A matter of supply and demand

"Gold is considered a safe haven for many Egyptians. The recent surge in prices has resulted in an increase in demand, while the supply is limited. The increase in gold prices has nothing to with the exchange rate," Hani Milad, head of the Gold Division at the Cairo Chamber of Commerce explained to Ahram Online.

Milad expects prices to stabilise in the near future to keep pace with global levels.