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Gold investment should be a long-term play: Experts

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Experts urge focusing on bullion, investing according to one’s financial ability

KUWAIT: With gold markets roiled by economic uncertainty and mounting geopolitical crises, many people are watching closely — hoping to seize the right time to invest. Speaking to Kuwait Times, Mohamed Salah, Operations Manager at a Gold bullions Company, emphasized that gold remains one of the most effective tools for protecting wealth against inflation, economic volatility, and geopolitical uncertainty, noting that two key methods dominate today’s gold investment landscape which is exchange-traded funds (ETFs) and physical gold bullion.

He explained that while ETFs are suitable for some investors, physical gold is the preferred option due to lower manufacturing costs compared to jewelry, which carries high markups. “Bullion is available in various weights, and the larger the bar, the lower the cost per gram. For example, a one-kilogram bar is significantly more cost-efficient in the long term than buying multiple one-gram bars.”

Regarding the timing of investing, Salah pointed out that the best time to buy gold depends on the investor’s objective. “If the goal is to preserve wealth against currency depreciation especially during periods of high inflation and a weakening US dollar, like now, then any time is a good time to buy.”

He pointed to the global trade wars, initiated under US President Donald Trump through tariff increases, as a major catalyst for economic tension, which has pushed gold prices higher. These economic pressures, in turn, reinforce gold’s appeal as a safe-haven asset.

Salah stated that gold is not a short-term profit but a long-term hedge, explaining that despite its lack of direct income, gold increases in value over time in response to crises. He cited data showing that gold returned over 20 percent in the past three years, with even higher gains recorded in the first quarter of this year. Leading financial institutions like Goldman Sachs and JP Morgan forecast a 40 percent chance of a US recession this year, reinforcing gold’s appeal amid declining global growth and escalating trade tensions.

One key factor pushing gold higher, according to Salah, is the significant weakening of the US dollar, which has lost over 11 percent of its value since the beginning of the year. As gold traditionally moves inversely to the dollar, this depreciation is a clear upward driver for gold prices. “Any reversal could trigger a correction. Still, the overall outlook favors continued growth, particularly as pressure mounts on the Federal Reserve to cut interest rates, which would likely further weaken the dollar and boost gold.” Salah concluded by recommending that investors allocate at least 15 percent of their portfolios to gold, emphasizing that times of economic uncertainty and high inflation are ideal for diversifying with precious metals.

Mohamed Fadel, General Manager of Gold Jewelry shop, said the amount invested in gold depends on available capital. For amounts under KD 5,000, he recommends gold coins or small bars (50–100 grams), while larger investments are better suited to 999.9-purity Emirati bullion, which carries lower fees than Swiss-made products.

Fadel pointed out that the rise in awareness fueled by social media has led to a notable increase in demand for physical gold, with many individuals withdrawing bank deposits to invest in bullion, which often yields higher returns than fixed interest savings.

However, he warned against short-term investments in gold, saying: “Those needing liquidity within months shouldn’t invest in it, as selling during a downturn could result in losses. Gold is better suited for surplus funds that can be locked away long-term.” He advised new investors to watch for price before buying and to invest incrementally. “Buy based on your financial ability even half a coin at a time. Every surplus can be turned into gold gradually.”

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Crown Prince receives Egyptian Deputy PM

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KUWAIT: His Highness the Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah received on Tuesday at Bayan Palace the Egyptian Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, Lieutenant General Kamel Abdulhadi Al-Wazir, and his accompanying delegation on the occasion of their official visit to the country. The meeting was attended by Kuwait’s Minister of Public Works Dr Noura Al-Mashaan and Egypt’s Ambassador to Kuwait Osama Shaltout.– KUNA photos

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Workshop discusses health competency framework

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KUWAIT: The Ministry of Health (MoH) on Monday inaugurated a regional workshop titled “Competency Framework”, aimed at reviewing the preliminary draft of a competency framework for public health professionals. The three-day workshop is organized by the Gulf Center for Disease Control in cooperation with the Gulf Health Council and the Kuwait Center for Disease Prevention and Control (KCDC).

In his opening remarks, Assistant Undersecretary for Public Health at the Ministry, Dr Munther Al-Hasawi, welcomed a distinguished group of public health leaders and specialists from GCC countries, emphasizing the workshop’s importance in light of the increasing need to enhance the efficiency and effectiveness of the public health workforce. Al-Hasawi stressed the critical role of investing in human capital through training, capacity building, and well-structured competency frameworks grounded in scientific and practical methodologies. He noted that public health competency goes beyond technical expertise, encompassing key administrative and interpersonal skills such as leadership, teamwork, and effective communication.

“Competency in public health is the ability to deliver appropriate, effective services to communities while achieving optimal outcomes,” Al-Hasawi said. “It includes service delivery, resource management, community engagement, and cross-sectoral cooperation.” Chairing the workshop, Dr Mohammed Al-Saeedan, Head of the Emergency Department – Public Health at KCDC, told reporters that the session aims to discuss and refine the initial draft of the framework with input from regional decision-makers and experts. The goal, he said, is to develop a comprehensive guide to strengthen the capabilities of the health workforce across GCC countries.

“Competency frameworks contribute to improving public health, increasing life expectancy, reducing the overall health burden, and advancing sustainable development,” Al-Saeedan explained. “Healthy individuals are more productive and better able to contribute to society.” He emphasized the importance of continuously updating public health guidelines and competency standards to build professional readiness and effectively address evolving health challenges. “Guidelines serve as essential tools in disease prevention and health promotion, guiding individuals and communities in making informed health choices that enhance quality of life,” he said.

Al-Saeedan noted that global shifts and the rising prevalence of diseases demand heightened preparedness and response capabilities. “As the world increasingly prioritizes prevention over treatment, public health professionals must be equipped with the highest level of skill and knowledge to manage emergencies and implement effective interventions,” he added. The workshop is expected to result in key recommendations that will shape a unified GCC approach to public health competency development and workforce excellence. — KUNA

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The hidden drivers behind high prices in Kuwait

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Although Kuwait was ranked earlier this year as the second least expensive Gulf country in the 2025 World Cost of Living Index, many residents feel that the prices of certain goods or services remain disproportionately high compared to other countries. While essential services — such as electricity, water, and fuel — are heavily subsidized and therefore inexpensive, other aspects of life, including housing, entertainment, and branded products, often carry a much steeper cost.

Therefore, according to economic expert Dr. Amer Al Tamimi, the root of the issue lies not in government policy, but in people’s behavior — whether it’s business owners inflating prices or consumers adopting high-cost lifestyles. Each year the state allocates no less than KD 6 billion in subsidies for electricity, water, fuel, and even certain food items. “In fact, the government has made life remarkably affordable for citizens — perhaps even too affordable.” But while basic goods may be inexpensive, the same cannot be said for luxury and lifestyle products. According to Al Tamimi, the high standard of living and strong purchasing power among Kuwait’s resident’s fuels intense demand for premium items — from cars and watches to high-end services and entertainment.

“These items might be cheaper elsewhere, but in Kuwait, the appetite for luxury pushes prices higher,” he explained. Even mid-range categories, such as transportation and clothing, are considered expensive when compared to regional or global averages. Social behavior plays a significant role in shaping price dynamics. “Some individuals, despite earning modest incomes, make choices driven by appearances,” said Al Tamimi. “Someone earning KD 1,000 might buy a car with KD 500 monthly installments just to keep up an image.”

This desire to showcase wealth creates an artificial demand for high-end goods and services. As demand rises, so do prices, creating a feedback loop that affects everything from café menus to car dealerships. “There’s a culture of excessive consumption. People need to rethink their habits, as rational consumption can lead to lower prices overall,” he suggested. This culture of overspending is reflected in many lifestyle choices. “I am surprised to see people pay for coffee delivery when they can simply an easily make it at home,” said Altamimi.

While some spending habits may be avoidable, others — like housing — are fundamental and affect nearly everyone. Al Tamimi pointed to Kuwait’s real estate market as one of the most significant contributors to the high cost of living, citing the soaring price of land. “Land alone accounts for around 70 to 75 percent of the total cost of any building,” he explained. “This is very different from many other countries, where land is more affordable and makes up a smaller portion of overall costs.” This imbalance has driven up both property prices and rent, placing a heavy burden on households and businesses alike. For many residents, housing expenses consume a large share of their monthly income.

Another key issue, Al Tamimi argued, is the lack of competition in certain markets. “Some goods are effectively monopolized by one, two, or three importers,” he noted. This concentration of market power gives a small number of players the ability to set prices with little competitive pressure. To address this, he urged efforts to open up the market. “Breaking these monopolies and encouraging more entrepreneurs to enter different sectors could help,” he said. “We need to streamline business procedures and reduce bureaucratic hurdles that currently discourage new players. In many cases, we only have a handful of stores selling certain products. More competition will ultimately benefit the consumer.”

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