Imad Saad, a gold markets expert, said that the ability to convert gold into cash quickly and efficiently is one of the greatest strengths of the Egyptian gold market. He explained that individuals can sell their gold and obtain its value almost immediately, even during periods of economic turmoil and market volatility.
Saad noted that the Egyptian gold market has consistently demonstrated its ability to absorb large volumes of selling, whether driven by profit-taking or by individuals seeking liquidity to meet urgent financial needs. He added that it is extremely rare for someone to approach the market to sell gold and fail to find a buyer or immediate liquidity.
He explained that this strength is not solely linked to the value of gold itself, but also reflects the market’s depth, its broad network of manufacturers, wholesalers, retailers, and traders, as well as the pivotal role played by major dealers in maintaining continuous liquidity and smooth market operations under all conditions.
Saad pointed out that major gold dealers play a vital role in recycling gold within the market. Gold purchased from consumers is sorted, refined, melted, and either remanufactured into jewelry or redirected through other commercial channels, ensuring uninterrupted market liquidity even during periods of heavy selling.
He emphasized that the true strength of any market is tested not during times of prosperity, but during periods of economic stress and sharp price fluctuations, when selling pressure intensifies. According to Saad, the Egyptian gold market has repeatedly proven its resilience by maintaining its ability to absorb supply without disrupting trading activity.
He added that the ease of converting gold into cash is one of the main reasons why Egyptians have traditionally viewed gold as a reliable store of value and a preferred savings instrument. Gold combines wealth preservation with the ability to be converted into cash rapidly, without lengthy procedures or the need to search extensively for buyers.
Saad noted that, in this respect, gold enjoys a clear advantage over many other savings and investment vehicles. While assets such as real estate may generate higher returns during certain periods, they are significantly less liquid. Selling property often requires weeks or even months, in addition to lengthy negotiations and legal procedures.
He explained that property owners seeking urgent liquidity may also be forced to sell below market value, whereas gold benefits from transparent daily pricing and can typically be sold within a very short period.
Saad further highlighted gold’s flexibility as an investment, noting that investors can buy or sell small quantities, jewelry, coins, or bullion bars in different weights. Real estate investments, by contrast, generally require much larger amounts of capital and cannot easily be sold in portions when only limited liquidity is needed.
He described gold as a form of “stored liquidity,” allowing investors to preserve wealth over long periods while retaining the ability to liquidate only the amount required, rather than disposing of an entire investment.
Saad stressed that high liquidity does not guarantee profits at all times, as gold prices move in cycles and are influenced by global bullion prices, exchange rates, and supply-and-demand dynamics. Therefore, investment returns continue to depend largely on the timing of purchases and sales.
He added that selling jewelry shortly after purchase may reduce returns because of manufacturing premiums, whereas gold bars and bullion coins are generally more suitable for long-term savings and investment due to their lower fabrication costs.
According to Saad, maintaining genuine market liquidity requires a healthy balance between buying and selling activity, sufficient financing capacity among dealers, and efficient channels for recycling scrap gold into investment bars and newly manufactured jewelry.
He also stressed that greater digitalization, transparent pricing, and wider access to real-time market information would further strengthen the Egyptian gold market, enhance consumer confidence, reduce pricing disparities among dealers, and improve market efficiency.
Saad concluded that the strength of Egypt’s gold market should not be measured solely by trading volumes or the number of jewelry stores, but by its ability to provide continuous liquidity, absorb market supply, and maintain smooth trading under both favorable and challenging economic conditions.
He concluded that the combination of high liquidity, investment flexibility, an extensive trading network, and gold’s long-term value preservation makes it one of the most dependable financial assets available to Egyptian savers and investors, particularly when compared with assets that may generate higher returns but require considerably more time and complexity to liquidate.
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