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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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US Ambassador welcomes Trump’s Gulf visit, highlights strong US-Kuwait food security ties

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KUWAIT: US Ambassador to Kuwait Karen Sasahara on Tuesday welcomed the visit of former US President Donald Trump to the Gulf region, describing it as a continuation of his longstanding relationships with Gulf leaders. “We are pleased with President Trump’s visit to the region. He has had deep-rooted relationships with Gulf leaders since his first term,” she said.

Her remarks came on the sidelines of the Fourth Annual Food Safety and Nutrition Summit, jointly organized by the US Department of Agriculture, the Ministry of Health, the Public Authority for Food and Nutrition and the US Embassy. The two-day summit is being held at the Ministry of Foreign Affairs with broad participation from Gulf Cooperation Council (GCC) countries. Ambassador Sasahara said Trump’s renewed engagement with Gulf partners reflects the strength of ongoing bilateral and regional dialogue. “President Trump is now resuming those relations through very important discussions on bilateral and regional matters. We are looking forward to the progress these talks will achieve,” she added.

The ambassador emphasized the robust economic ties between the United States and Kuwait, particularly in the field of agriculture. She noted that bilateral trade in agricultural goods reached $275 million in 2024, while total US agricultural exports to the GCC amounted to $3.6 billion. “Our embassy team has worked closely with Kuwaiti government institutions and local farmers to address food security challenges and explore how US technologies can contribute to sustainable solutions,” she said. Sasahara described agriculture and food not only as economic sectors, but also as bridges that bring nations together. She highlighted the summit’s goal of enhancing cooperation and exchanging best practices in food safety and nutrition.

“The United States exported more than $191 billion in agricultural products last year,” she said, pointing to Washington’s leadership in agricultural innovation and its call for long-term investments in biotechnology, improved seeds, and fertilizers. She also noted that the US and GCC share common public health concerns, particularly the rise in obesity and chronic diseases. “We are committed to working with our regional partners to raise nutrition standards and improve public health outcomes,” the ambassador said.

For his part, Minister of Health Dr Ahmad Al-Awadhi underscored the critical importance of food safety and nutrition in achieving sustainable development. “Ensuring access to safe and adequate food and advancing nutrition systems are fundamental pillars for sustainable progress,” he said in his opening remarks. Dr Al-Awadhi stressed that Kuwait remains committed to aligning its efforts with the United Nations 2030 Sustainable Development Goals, particularly those targeting hunger eradication and sustainable agriculture. He cited Kuwait’s National Food Security Strategy, enhanced import regulations, and updated guidelines for school canteens as examples of recent initiatives.

Citing World Health Organization (WHO) data, the minister warned of the human toll of unsafe food, noting that more than 600 million people suffer from foodborne illnesses annually, leading to over 420,000 deaths — including 125,000 children under the age of five. “These figures highlight the urgent need to strengthen food safety systems and raise awareness, particularly to protect vulnerable groups like children,” he said. He also addressed the global rise in obesity, pointing to WHO statistics indicating that over one billion people are currently obese. “Childhood obesity rates have quadrupled since 1990, and in 2024, over 15 million children under five were classified as overweight,” he said.

Dr Al-Awadhi called for increased investment in food inspection and laboratory capabilities across the region, and praised international partnerships, particularly with the United States and UN agencies, in developing resilient food safety systems. The summit aims to serve as a platform for regional and international stakeholders to collaborate on policy, innovation, and public health approaches that enhance food security and nutrition outcomes across the Gulf. — KUNA

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KOTC inaugurates solar power plants at LNG stations

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KUWAIT: Kuwait Oil Tanker Company (KOTC) on Tuesday announced the official launch of solar power plants at its two liquefied natural gas (LNG) filling stations in Umm Al-Aish and Shuaiba, with a combined production capacity of 4.05 megawatts. The announcement was made during an inauguration ceremony, where KOTC’s Acting CEO Sheikh Khaled Ahmad Al-Malik Al-Sabah affirmed that the company is the first in Kuwait’s oil sector to implement such a strategic renewable energy project.

“This initiative represents a significant step forward in achieving energy self-sufficiency and fully operating our LNG stations using renewable energy,” Sheikh Khaled said, emphasizing the company’s commitment to environmental sustainability. He noted that the project is aligned with Kuwait’s national vision to achieve carbon neutrality and reduce greenhouse gas emissions, adding that it reduces reliance on the national electricity grid and minimizes the carbon footprint by effectively harnessing solar energy.

Sheikh Khaled described the project as a pioneering model for clean energy within Kuwait’s oil sector, highlighting its role in enhancing operational efficiency, lowering costs, and supporting environmental goals in line with the highest international standards. He also praised the dedicated efforts of KOTC’s team in bringing the project to fruition, underscoring the contribution of Kuwaiti talent in driving sustainable energy initiatives that deliver both environmental and economic benefits to the nation. — KUNA

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Ministry begins road rehabilitation works in Fahad Al-Ahmad

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KUWAIT: Minister of Public Works Dr Noura Al-Mashaan announced the commencement of comprehensive road maintenance works in Fahad Al-Ahmad as part of a wider initiative encompassing 18 road rehabilitation projects across Kuwait’s governorates. The move comes in line with the New Kuwait 2035 vision aimed at enhancing the country’s infrastructure.

In a press statement issued Sunday, Dr Al-Mashaan affirmed the ministry’s commitment to implementing its development strategy in accordance with the highest technical standards, ensuring the delivery of high-quality projects that enhance road efficiency and safety. She noted that the efforts fall within a broader national framework to modernize and develop Kuwait’s road network.

KUWAIT: Workers continue the roads maintenance in Fahad Al-Ahmad, Al-Mangaf and Al-Aqila as part of the new contracts.- KUNA photos

KUWAIT: Workers continue the roads maintenance in Fahad Al-Ahmad, Al-Mangaf and Al-Aqila as part of the new contracts.- KUNA photos

Meanwhile, Engineer Mohammad Ra’i Al-Fahma, a member of the supervision team for Contract 15 – the first phase in Al-Ahmadi Governorate – confirmed that field teams have begun executing extensive maintenance works in Block 1 of Fahad Al-Ahmad. He added that the works involve laying a Type 3 asphalt layer in accordance with approved technical specifications. Engineer Abdullah Al-Kandari further noted that road maintenance operations are concurrently underway in several areas, including Blocks 1 and 4 of Al-Mangaf, as well as Street 245 in the Aqila area. Additionally, infrastructure cleaning and maintenance works are being carried out in the Raqqa and Hadiya areas. — KUNA

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