Kuwait’s gold rush: A billion-dollar surge in purchases

PHOTO

KUWAIT CITY: Kuwaitis and expats have invested approximately one billion dollars in gold purchases within the first nine months of this year. This surge in investment is driven by a significant acquisition of approximately 14.5 tons of the precious metal, with an average price per ounce standing at $1,941.95 during this period. The increase is notable in the purchase of bullion and currencies, with gold witnessing a rise of about 300 kilograms from July to the end of September 2023.

Data from the World Gold Council reveals that Kuwait’s overall gold purchases during the first three quarters of the year experienced a modest uptick of about 300 kilograms, starting from January until the end of September 2023. The total volume of gold, including jewelry, bullion, and coins, reached 14.5 tons, surpassing the 14.2 tons recorded during the same period in 2022.

A closer look reveals a substantial increase of 600 kilograms in the volume of actual gold sales in Kuwait, primarily in bullion, while jewelry sales saw a decline of about 300 kilograms. This resulted in a net increase of 300 kilograms. Despite a slight decrease in jewelry purchases during the initial nine months of this year, there was a noticeable uptick in bullion and coin acquisitions over the same period.

Jewelry purchases accounted for approximately 10.6 tons from January to the end of September 2023, marking a 300-kilogram decrease compared to the 10.9 tons sold during the corresponding period in 2022. Meanwhile, the surge in bullion and gold coin purchases contributed to an 18.2% increase in overall gold acquisitions in Kuwait during the first three quarters of 2023, totaling 600 kilograms of bullion. This brought the total bullion size for the period from January to September 2023 to about 3.9 tons, up from 3.3 tons during the same period in 2022.

Examining quarterly trends, the data indicates that the period from April to June 2023 saw the highest total volume of gold purchases in Kuwait, reaching 5.5 tons, followed by July to September with 4.9 tons, and then January to March at 4.1 tons.

Breaking down the data further, the crafts sector recorded the largest volume of purchases in the second quarter of 2023 at 4.2 tons, followed by 3.4 tons in the third quarter, and 3 tons in the first quarter.

In terms of bullion, the first quarter of the year witnessed purchases of 1.1 tons, followed by 1.3 tons in the second quarter, and 1.5 tons in the third quarter.

Quarterly comparisons on an annual basis reveal stability in the first quarter of 2023, with 4.1 tons of jewelry and bullion, mirroring the same volume of purchases during the same period in 2022. The second quarter of 2023 saw an increase to 5.5 tons of jewelry, compared to 4.9 tons in 2022, while the third quarter of 2023 recorded 4.9 tons of jewelry and bullion, slightly lower than the 5.2 tons for the same period in 2022.