Egyptians turn to gold ingots to protect savings

There has been a high turnout of Egyptians buying gold since the breakout of the 25 January revolution, according to the Cairo Chamber of Commerce precious metals division.

In a statement to Al-Masry Al-Youm on Monday, the division's head, Nady Naguib, attributed the trend to customers' desire to protect the value of their savings during Egypt's current state of instability.

Naguib added that the amounts of gold bullion being bought range between a gram and a kilogram. He said gold prices keep fluctuating as world rates increase with the financial crises in the US and Europe.

Naguib said instability and the recession in international stock markets push investors and corporations toward gold as a safe investment.

On the local market level, the price for 21-karat gold has ranged between LE274 and LE277 per gram in the past few days, amid speculation of further price hikes due to rising world rates.

Naguib added that Egyptian consumers with financial surplus turn to gold ingots as there are no extra expenses, such as sales taxes, imprints or workmanship.

He said gold bullion prices represent 10 to 15 percent of gold sales.

Translated from the Arabic Edition

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