Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Hedging from crises.. An exceptional demand for gold in Iraq and Algeria

    Rocky
    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 269035
    Join date : 2012-12-21
    • Post n°1

    Hedging from crises.. An exceptional demand for gold in Iraq and Algeria Empty Hedging from crises.. An exceptional demand for gold in Iraq and Algeria

    Post by Rocky Sat 29 Jul 2023, 4:51 am

    Hedging from crises.. An exceptional demand for gold in Iraq and Algeria
    [You must be registered and logged in to see this link.] |Today, 10:[You must be registered and logged in to see this link.]
    [You must be registered and logged in to see this image.]

    +A
    -A


    Baghdad today - follow-up
    The parallel currency exchange market and the real estate market are no longer the only ones affected by the rise in inflation and the collapse of the dinar in Algeria, as the gold market, which has lived in stagnation for years, is finally reviving due to the growing fears of citizens about the collapse of the country's currency, and with it the fall of the faltering economy.
    The demand for gold during the past months exceeded the Algerians’ rush to buy the precious metal with the beginnings of the “Corona” pandemic, which led to an increase in the price of one gram of “broken” (used) gold, to reach 7 thousand dinars ($ 51), for local 24-carat gold. carats, after it ranged between 4 thousand dinars ($29) and 5 thousand dinars ($37), earlier, and new gold prices rose by about two thousand dinars per gram, to touch the threshold of 10 thousand dinars per gram ($74). This comes in light of the spread of adulterated gold.
    Omar, one of the sellers in the "Wad Kniss" garden, famous for selling gold in the center of the Algerian capital, reveals that "the fear of the fall of the value of the dinar has become a preoccupation for Algerians now, as they are all afraid of a repeat of the Venezuelan scenario."
    sliding conditions 
    For his part, the seller, Reda, said, "This period usually knows the recovery of the gold markets, as it is the season of weddings and social events, but the Algerians' fear of slipping social and economic conditions prompted them to take refuge in gold, and what we live today we have already lived through in 2020 with Corona, and the year 2017, when The country witnessed a rush to acquire gold after the worsening decline in the value of the dinar.
    In 2022, the Algerian currency lost more than 30 percent of its value against the dollar, after it jumped from 113 dinars to 139 dinars per dollar at the end of 2020, before settling at 135 dinars since the beginning of the current year, in the largest slide of the Algerian dinar against foreign currencies. This prompted inflation to double from 4 percent to 12 percent, according to government figures.
    "Algerians' fear of the collapse of the dinar increases with the passage of days, especially with their suffering from a decline in their purchasing power," said economist Jamal Noureddine. Noureddine added, speaking to The New Arab, that "Algerians no longer trust their currency or even their country's economy, and prefer to transfer their money to foreign currencies and gold, and this is a politically and economically dangerous matter."
    negative effects 
    He pointed out that Algeria lived through a similar scenario in 2020 with the emergence of the Corona pandemic, and in 2011 when the "Arab Spring" began, as citizens feared unrest in the country, so they rushed to extract money from bank balances and money kept in homes and convert them into euros by virtue of the geographical proximity with The old continent, which caused a severe liquidity crisis in the country, and the banks announced at that time the establishment of strict controls for daily withdrawals, and something of this is happening today. .
    Regarding the negative effects, the Algerian expert says, "The demand for gold will increase the financing of parallel markets with monetary blocks, because transactions in this market are mostly outside official activities."
    In Iraq, the market is witnessing an increase in the prices of gold in its various categories, as the price of selling a gold weight known as "Gulf gold", 21 karat, which is prevalent in the local market, ranges between 400 thousand dinars and 410 thousand, and the selling price of an Iraqi gold weight ranges between 370 thousand And 380 thousand dinars. (1320 dinars for one dollar), and one weight of gold is equal to five grams, and the price of an ounce of gold (201 grams) is 1931 dollars.
    The Iraqi market also witnessed purchases of gold with the aim of saving, despite the high prices, due to the loss of confidence in monetary currencies on the one hand, and the poor performance of investment banking for the saved funds on the other hand.
    monopoly
    Economic researcher Nabil Jabbar Al-Tamimi considered that buying gold in Iraq is one of the issues of safe and profitable savings at the same time, despite the high prices, stressing that gold prices rose in two years from $1,300 to $2,000 per ounce.
    Al-Tamimi added that, in light of the limited investment opportunities in Iraq, the weakness of the banking system, and the loss of confidence in it, the Iraqis find that buying and storing gold is a kind of saving, indicating that most gold savers are those who have not much money, because it is not possible to buy real estate or fixed and profitable assets.
    For his part, Ammar Al-Azzawi, a gold dealer in Baghdad, said that people's interest in buying gold continues despite the high prices, and there is a moral and material value of gold that makes it a means of saving and preserving money from loss and loss of value.
    Al-Azzawi stressed, "There are large merchants and companies in Iraq that control the market, and have a role in people's desire to buy, especially in times of crisis, as any crisis that occurs, whether it is the rise or fall of the dollar, or market fluctuations and inflation, is exploited through propaganda campaigns or Spreading rumors that gold will rise in the future, which prompts people to buy collectively
    Economic researcher Abd al-Salam Hassan said that there are cheating processes for gold sold through molten gold before placing it in the design moulds, indicating that the cheating process in the material is difficult to detect except through experienced goldsmiths or experts in gold.
    And about the interest of savers to buy gold, Hassan indicated that the lack of confidence of individuals in the financial system followed by Iraqi banks and the lack of security are among the most important reasons that drive saving it as a stable means.
     
    Source: "The New Arab"
    [You must be registered and logged in to see this link.]
    • Back to top
      Current date/time is Sat 27 Apr 2024, 7:01 pm