Demand for gold bars and coins in Egypt records 300% in Q2 2023

CAIRO - 3 August 2023: Bar and coin investment in the Middle East reached a 10-year high of 32 tons, according to the Gold Demand Trends Q2 2023 report published by the World Gold Council (WGC) on Tuesday. The demand for gold bars and coins in Egypt increased by more than 300 percent on a yearly basis to over 10 tons in Q2 2023.

The report showed that growth was universal across the MENA region, but Egypt was of the largest contributors by far along with Iran.

The WGC showed that the first half of 2023 total investment demand of 19 tons is close to 2022’s annual total. This is attributed to the steep year-on-year rise in inflation, and “successive controlled devaluations of the local currency have shone a spotlight on gold’s properties as a safe haven,” the report stated.

Earlier this year, the Egyptian Cabinet approved a draft resolution to exempt gold imports in semi-manufactured forms from customs. The decision exempts gold artifacts intended for monetary circulation, ornaments, and jewelry, brought with Egyptian travelers coming from abroad from the customs tax and other fees for a period of six months.

“A relaxation of restrictions on hand-carried gold has eased supply conditions in the local market, and this is reflected in lower premiums on gold investment products. Demand remains robust in the face of a challenging economic backdrop and potential further currency depreciation,” the WGC report stated.