Gold and jewelry expert Ahmed Al-Baqshi revealed significant economic forecasts indicating a potential surge in gold prices, possibly reaching 50%, over the next two years. These forecasts come amidst continued uncertainty in the global economy, reinforcing the precious metal's position as a key hedge against inflation and market volatility.
Gold as a safe haven throughout history
To understand these expectations, it's essential to consider the broader context and historical background of gold's movements. Throughout history, gold has been considered a "safe haven" to which investors, individuals, and governments turn during economic and geopolitical crises. Historical data indicates that gold retains its purchasing power over the long term, unlike paper currencies, whose value can erode due to inflation. This historical role lends credibility to current expectations of a continued upward trend, especially given the trend among many central banks worldwide to increase their gold reserves.
Saudi market transformations and consumer behavior
In an interview with Al-Youm newspaper, Al-Baqshi explained that the gold market in Saudi Arabia is experiencing an unprecedented period of maturity. Despite prices reaching record highs, this has positively impacted consumer confidence. He noted that the public has witnessed firsthand that gold is an asset that appreciates over time, as those who purchased gold in recent years have achieved substantial returns, reinforcing the belief in the viability of investing in it.
Changing buying patterns: from decoration to investment
The expert observed a notable shift in buyer demographics; gold, traditionally reserved for women for adornment and jewelry, has now seen a significant influx of men into the market. This new segment focuses its demand on bullion and pure gold for long-term savings and investment. This transformation reflects a growing financial awareness among individuals, where the concept of "gold as both adornment and store of value" has become a tangible reality, combining aesthetic appeal with financial security.
Technology and reliability in the gold market
Regarding market infrastructure, Al-Baqshi emphasized that technological advancements have played a crucial role in enhancing transparency. The availability of modern and sophisticated gold testing equipment in the Kingdom has contributed to increased reliability, as these devices allow for highly accurate and rapid determination of purity and metal type, thus protecting consumer rights and eliminating traditional fraudulent practices.
Important tips when buying and selling
Al-Baqshi concluded his remarks by offering essential advice to prospective buyers, emphasizing the superiority of pure gold (bullion) for investment purposes due to its ease of resale without incurring losses on manufacturing costs or the value of non-genuine gemstones. He also highlighted the importance of natural and rare gemstones, which can sometimes exceed the value of gold, stressing the necessity of documenting all details of the pieces and stones in official invoices to safeguard financial rights upon resale.
