(MENAFN- Daily News Egypt)
The price of a gram of gold increased to EGP 35 - EGP 50 as a result of the rise in gold investment in 2019, and the demand for bullion.
Hassan Embabi, CEO of the platform "Isagha" specialised in gold selling online, said that the platform's latest report showed a rise in demand for bullion from January to October by 60%.
He added that there is a trend for consumers to invest their money in bullion due to their low workmanship, ranging between EGP 15 and EGP 20 in 2018, and rising in 2019 to range between EGP 35 and EGP 50.
He pointed out that the rise is not linked to the rise in gold prices, but rather the tendency of some companies to introduce coated high-quality products, and raise the value of its workmanship, which led to a trend to raise the price of the alloy workmanship within the market.
He added that the increase in demand from citizens was due to companies' propaganda campaigns that led citizens to buy bullions and pounds and pulled the market towards the idea of investment. This increased the demand of investors and depositing into Suez canal certificates in buying bullions and pounds.
He explained that the diversity of products on the market is in the interest of consumers, and gives them different investment opportunities according to purchasing power, and meets their needs.
He added that the rise of alloys workmanship weights less than 31.10 grams per ounce to a level exceeding EGP 35 is not a real investment for customers, given the presence of popular jewelleries such as bracelets whose workmanship does not exceed EGP 25, and benefits consumer in terms of saving and wearing.
He pointed out that the percentage of recovery of workmanship value by consumers declined from EGP 17 to range between EGP 9 and EGP 11.
According to him, the products offered vary in terms of weights. Alloys with low weights range from 31.10 to 100 grams and large weight include a quarter kilogram and a half kilogram.
Hani Baqi, chairperson of Margaret Gold Company, said that the demand for bullion has pushed the market to introduce new products, whether through the establishment of new companies or the allocation of lines for the production of bullion and pounds at different weights.
He added that the successive upward movement of gold prices in recent years has attracted the attention of consumers to invest in gold as a safe haven, as a result of the ease of buying simple volumes or selling at any time, other than investing in other savings vessels such as real estate.
Baqi stated that the high demand for investment in gold is due to the decline in workmanship, but Upper Egypt and other regions are still far from investing in bullion and interest in jewelleries of calibre 21.
He pointed out that the rise in gold prices enhances the gains of individuals in investment, and reduces the losses of price differences of bullion workmanship.
According to him, workmanship of sizes less than 31.10 grams exceeds EGP 30, while for of larger sizes, it ranges between EGP 20 and EGP 25.
The rise in workmanship is due to high prices as a result of the recent economic reforms carried out by the state and the gold market, as a result of the rise in wages and salaries of workers and packaging supplies and others, Baqi added.
He illustrated that gold companies pay attention to the appetite of consumers to invest in bullion, and put low weights within the reach of the purchasing power of citizens, ranging between one gram and 31.10 grams.
He pointed out that the competition between companies for the introduction of bullion and pounds enhances the capacity of the local gold market, and is in the interest of consumers to obtain a variety of products of different quality.
The competitiveness has prompted companies to introduce local bullion with a local brand, and with high quality packaging systems, emulating imported bullion, which confirms the development of the gold industry locally, Baqi elaborated.
He expected a rise in demand for bullion during the coming period as a result of the rise in gold prices globally to a level between $1600 and $1700 an ounce.
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