Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Gold Markets in Menoufia House Over 250 Shops

Gold Service

Sat 16 Sep 2023 | 09:59 PM
Walid Farouk

Monufia, known for its vibrant gold trading scene, houses around 250 dedicated gold shops. While the sheer number showcases the region's robust market, local trends hint at shifting sands in the world of gold trading.

Eid Youssef, who helms the Gold Division at Monufia’s Chamber of Commerce, sheds light on the market dynamics. He notes that while the number of shops suggests a flourishing trade, the sales paint a different picture. Gold transactions in Monufia have seen a downturn, primarily pinned on escalating gold prices worldwide.

One striking trend, as Youssef points out, is the changing behavior of consumers, especially those shopping for wedding trousseaus. The exorbitant prices are forcing many couples to purchase only half the gold they initially intended, listing the remaining amount as a commitment in their wedding contracts.

21-karat gold remains the favorite in Monufia, consistently outperforming its 18-karat counterpart in sales. On a broader scale, the overall demand for gold bullion and coins has receded. This, after a period where the markets witnessed frenzied buying spurred by fears of currency devaluation. With the declining prices, many potential buyers are playing the waiting game, hoping for an even more favorable market.

Gold prices, as Youssef emphasized, are tethered to global dynamics – primarily dictated by the laws of supply and demand. The parallel market's dollar exchange rate is a pivotal player in these price shifts.

Further, discussing the intricacies of the trade, Youssef mentions the varying manufacturing costs of gold items in Monufia. These can span from 75 to 170 Egyptian pounds, contingent on the piece's nature and its manufacturer. An interesting tidbit: imported pieces usually command higher crafting fees than those locally produced.

With such insights, it becomes evident that while Monufia's gold market remains a bustling hub, it's not impervious to global economic shifts and local consumer behavior. The evolving dynamics offer both challenges and opportunities for traders and consumers alike.