Rafiq Abbasi, Ex-Chairman of the Gold Division of the Federation of Egyptian Industries, stated that gold is not an investment, but more of a hedging instrument and savings value.
"Gold does not achieve returns as some people believe, and if it does, it is marginal," Abbasi noted, adding that investing in the stock market, bank certificates, and real estate generates monthly returns, unlike gold.
Abbasi said gold is more valuable than an investment, highlighting that if you buy 21-karat, 18-karat, or 24-karat as an investment, all will generate the same return. He explained that the buyer pays the partial value in karat.
The former chairman mentioned that the price of raw gold in bullion equals all calibers, so it is recommended not to invest in gold such as waiting for returns. He reiterated that the desirable returns come from investing in the stock exchange and bank certificates.
In addition, Abbasi underlined that gold prices depend on two main factors, including the price of the global stock exchange, which is affected by political and economic decisions worldwide. It also depends on the dollar in Egypt; if it rises, gold prices will also increase.
He elaborated that the trader buys the dollar from the black market that provides it at a higher price than the official ones; hence, the trader adds these hikes to the gold price.
However, the relationship between the dollar price and gold is inverse on the global level, so if the dollar rises, the gold declines, and vice versa.
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