Gold traders complained of a shortage of bullion bars after a surge in the price of the precious metal locally and globally, amid rising buyer demand driven by gold’s appeal as a safe haven and a savings tool in times of turmoil.
The selling price of 21-karat gold, the most widely traded in the local market, reached 7,070 Egyptian pounds per gram today, up more than 21% this month.
At this rate, a single gram of gold is equivalent to the monthly minimum wage in Egypt, underscoring the scale of economic strain.
Globally, the price of an ounce of gold has continued its upward trend since the beginning of January, reaching $5,310, up 23% from the start of the month.
Reuters attributed the rise in global gold prices to uncertainty over international conflicts, expectations of US interest rate cuts, and increased central bank purchases of bullion.
Karim Suleiman, a gold trader, told Al Manassa that the market is seeing a noticeable shortage in bullion bars. “In the past, we would offer anything from 1 to 4 kg of ingots, and they would be completely taken within a single day, but now we are no longer able to offer 200, 300, or 500 grams,” he said.
Suleiman explained that producing companies have begun limiting allocations for traders, which affects the actual supply in the market. “If a trader’s share is 1 kg, they actually receive only 100 or 200 grams, meaning one-tenth of the usual quantity, and that limits the ability to meet rising demand,” he said.
He added that delivery requirements and delays in receiving bullion bars, whether through paying a down payment or waiting longer periods, have contributed to delays, noting that some customers are forced to wait two or three days to buy a bar, even though the price rises during that period by 100 or 200 pounds.
For his part, Saied Embaby, the CEO of the iSagha gold trading platform, told Al Manassa that there is indeed a delay in bullion deliveries, which may currently extend to more than a week, and in some cases to 3 weeks, due to increased demand compared with available supply. However, he stressed that the situation “cannot be described as a crisis, but rather a temporary pressure on supply.”
Embaby said bullion bars are seeing strong demand as a savings tool and a direct investment that is easy to trade, while demand for gold jewelry remains comparatively subdued.
According to Hany Milad, head of the General Division for Gold and Jewelry at the Federation of Egyptian Chambers of Commerce, Egypt’s production capacity for gold bullion bars is sufficient to meet the needs of the local market, but what he described as “impulsive consumer behavior” has created a sense of a shortage in supply.
Milad told Al Manassa, “Gold bullion bars are available from about 15 companies with roughly similar quality and efficiency, but the problem is not the market or production, it is consumers rushing to buy.”
On price expectations, Milad said he anticipates the local market will see relative stability in the coming days, with the possibility of gradual increases over the long term, especially amid ongoing global economic, political, and geopolitical shifts.
