The Middle East: save gold and it will reward you
According to gold prices statistics from Kitco, the largest platform for precious metals experts, gold positions in the market are strong.
But what about the region where national economies depend on oil industry, which has been an issue of serious concern lately?
Gold and cash reserves increase by half
Current situation in the Middle East cannot be described as stable. Such oil countries as Saudi Arabia, the United Arab Emirates and Kuwait have been pressured by low oil prices. It devastates foreign exchange reserves and weakens regional stock markets.
The Emirates Investment Bank conducted a survey among the 100 richest men from the countries of the Persian Gulf to know their opinion on the current situation.
What are the results of the survey?
Despite receiving 58% optimistic feedback about economic development in the UAE, only 8% of Bahrain, Kuwait and Saudi Arabia residents have positive expectations. Approximately 70% of survey participants from Oman believe that the country's economy is declining.
More than a half of participants stated that they were reducing their business expenditures and reconsidering investment strategies. What is a safe capital investment according to the residents of Arab countries?
Nearly a quarter of the inhabitants, 10% more than in 2015, save money and use bank deposits. Gold and other precious metals are also in demand among rich people; almost a twofold increase from 5% to 9% since 2015 is a vivid proof of this fact.
What is the overall outlook?
The interest of Arab countries towards shares, real estate and private investments has certainly dropped. Almost one third of survey participants have reduced their activities in the stock exchange or have planned such a reduction for a while. However, the increase in gold investment almost by half compared to the last year clearly indicates the strengthening of precious metal market.
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