Business
Silver bullion shines as the latest investment trend in Kuwait
Kuwaiti investors turn to silver bullion for long-term returns amid economic uncertainty.
KUWAIT CITY, April 27: Kuwait’s metals and jewelry market is currently experiencing a growing demand for silver bullion, according to two industry specialists. The trend, driven by various factors, is attracting both investors and consumers looking for ways to preserve value and seek future returns.
The surge in silver’s popularity comes as geopolitical and economic events accelerate, coupled with record-high gold prices. Many are turning to silver as a more affordable alternative to gold, which has become out of reach for smaller investors due to its high cost. Both specialists emphasized that silver, which tends to follow gold’s price movements, offers a more gradual increase, making it a viable long-term investment. However, they noted that investing in silver requires patience, with a minimum holding period of two years to see tangible returns.
Mohammed Fadel, General Manager of Dabla Jewellery Company, highlighted the emerging trend in the Kuwaiti market, with a growing number of citizens and residents purchasing silver bullion for investment purposes. The recent record highs in gold prices—reaching 35,000 dinars per kilogram—have sparked interest in silver as a more accessible option for those looking to invest in precious metals without the need for substantial liquidity. Fadel noted that silver presents an attractive option for young people and new investors who may not have large amounts of capital.
While silver offers a less expensive alternative, Fadel cautioned that silver’s price rise is much slower than gold’s, and liquidating silver may not be as quick as selling gold. Despite this, he stressed that Kuwaitis are becoming increasingly aware of the benefits of diversifying their investment portfolios, which has led to a noticeable rise in silver demand. Silver bars, ranging from 1 kilogram to 12 kilograms, are in particular demand. The current price for a 999 purity silver bar is 360 dinars per kilogram, while a 999.9 purity bar is priced at 380 dinars per kilogram.
Fadel also revealed that Dabla Jewellery has seen a significant increase in inquiries about silver investment in recent months, with sales of silver bullion doubling compared to the previous year. To meet the rising demand, the company is expanding its selection of silver products.
Metals market analyst Nasser Al-Attar also pointed to several factors contributing to the rising popularity of silver, particularly the geopolitical and economic uncertainty that has led investors to seek safe-haven assets. Historically, gold has been the go-to refuge during times of crisis, but its high price has pushed many to look for alternative options. Al-Attar emphasized that silver provides an affordable way to preserve wealth, making it an attractive choice for individuals with more limited financial resources.
Industrial demand for silver has also played a crucial role in driving up its price. Sectors such as technology and renewable energy are increasingly relying on silver, boosting its value and further supporting its position as a promising investment. The continued industrial demand, Al-Attar noted, is a key factor in the expectation of further price increases for silver in the coming years.
Despite the growing trend, Al-Attar pointed out that investing in silver comes with its own set of challenges. Unlike gold, which experiences sharp price increases, silver’s price rises are typically slower and less dramatic. Additionally, reselling silver is more difficult than selling gold, and the silver market lacks the regulation and structure found in the gold market.
For those considering silver as an investment, Al-Attar identified three key disadvantages:
Slower Price Increases: Silver’s price appreciation is typically more gradual and less pronounced than that of gold.
Reselling Challenges: The process of selling silver is not as straightforward as gold, which may deter investors seeking quick liquidity.
Lack of Market Regulation: Unlike the gold market, silver trading is less regulated, which can pose risks for investors.
While silver offers promising long-term potential, experts agree that it is best suited for investors with a patient, long-term approach. As demand for silver continues to rise, it remains a viable option for diversifying investment portfolios, particularly in times of economic and geopolitical uncertainty.
A person stands near an electronic stock board, left top, showing Japan’s Nikkei index at a securities firm on July 22, in Tokyo. The traffic signs read: No Crossing. (AP)
BANGKOK, July 22, (AP): World shares were mixed on Tuesday after U.S. stock indexes inched to more records at the start of a week of profit updates from big U.S. companies. Germany’s DAX lost 0.5% to 24,186.14 and the CAC 40 in Paris gave up 0.4% to 7,768.46. Britain’s FTSE 100 edged 0.1% lower, to 9,009.34. The futures for the S&P 500 and the Dow Jones Industrial Average were virtually unchanged.
In Asian trading, Japan’s benchmark surged and then fell back as it reopened from a holiday Monday following the ruling coalition’s loss of its upper house majority in Sunday’s election. The Nikkei 225 shed 0.1% to 39,774.92. Analysts said the market initially climbed as investors were relieved that Prime Minister Shigeru Ishiba vowed to stay in office despite the setback
. But the election’s outcome has added to political uncertainty and left his government without the heft needed to push through legislation. A breakthrough in trade talks with the US might win Ishiba a reprieve, but so far there’s been scant sign of progress in negotiating away the threat of higher tariffs on Japan’s exports to the US beginning Aug 1.
“Relief may be fleeting. Ishiba’s claim to leadership now rests on political duct tape, and history isn’t on his side. The last three LDP leaders who lost the upper house didn’t last two months,” Stephen Innes of SPI Asset Management said in a commentary. Elsewhere, Hong Kong’s Hang Seng rose 0.4% to 25,082.78, while the Shanghai Composite index advanced 0.6% to 3,581.86.
South Korea’s Kospi sank 1.3% to 3,169.94, with investors concerned over the Aug. 1 deadline for making a deal with U.S. President Donald Trump or facing 25% tariffs on all the country’s exports to the US. Australia’s S&P/ASX 200 added 0.1% to 8,677.20.
India’s Sensex gained 0.1%, while In Thailand, the SET sank 1.1% after the government named Vitai Ratanakorn as the new future governor of the central bank. He is viewed as likely to be less independent than the current governor, raising concerns about the bank’s independence, analysts said. Vitai will replace Sethaput Suthiwartnarueput, when his term as governor ends in September.
Chairman of the Kuwaiti Directorate General of Civil Aviation (DGCA) Sheikh Humoud Mubarak Humoud Al-Sabah receives the Japanese Ambassador to Kuwait Kenichiro Mukai
KUWAIT CITY, July 21: Chairman of the Kuwaiti Directorate General of Civil Aviation (DGCA) Sheikh Humoud Mubarak Humoud Al-Jaber Al- Sabah said Sunday that the DGCA looks forward to promoting cooperation with Japan in civil aviation. Sheikh Humoud made the remarks while welcoming Japanese Ambassador to Kuwait Kenichiro Mukai to discuss bilateral cooperation in the field of civil aviation, the DGCA said in a press release. He underlined the importance of deepening the distinguished ties between both friendly countries, praising Japan’s advanced experience in technology and aviation industry, it said. For his part, the Japanese Ambassador expressed his appreciation to the Kuwaiti official for his hospitality, saying that his country is interested in furthering cooperation with the State of Kuwait in aviation, in a way that contributes to exchanging expertise and achieving integration in the fields that concern both sides. (KUNA)
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