The Kuwaiti gold market is currently dominated by exchange of old pieces for new ones of newer designs as customers shy away from new purchases amid soaring prices, a weekly specialized report indicated.
The Zomoroda weekly report said new purchases are mostly in the category of small bullion as customers consider gold a good investment and the best option against the threat of inflation. Price of gold per kilo actually surpassed KD 14,250 for the first time in Kuwait and this, coupled with shrinking demand, is making it hard for owners of gold workshops to buy pure gold.
The report noted that an ounce of gold in the international market topped USD 1,610 last Tuesday, a new peak, on the heels of an increase in the euro exchange rate and the price of oil against the drop of the US greenback.
The report added that despite stability in the euro zone after the passing of the plans to save Greece and despite the sum of euro 160 billion to be paid to cover its debt, euro 109 to come from the European Union and the International Monetary Fund, there was still related tension in the atmosphere driving investors to seek the yellow metal.
The forecast is for more hikes still to the USD 1,650 per ounce level, should democrats and republicans in the US fail to approve a rise in US debt in Congress.
The price of gold is now twice that of 2008 when an ounce came to just USD 850.
As for the second best investment, silver, the report noted the metal is the ideal choice for those seeking quick gains since the metal is still much below its record price and had been rising hand in hand with gold last week. While the peak of an ounce of silver is recorded at USD 40.80, the metal only climbed to USD 40.14 till end of last week, the report indicated.
Regardless of price at which silver is to be bought at present, analysts predict a climb all the way to USD 50 an ounce before the end of the year and the metal is thus by far the best investment amid precious metals.