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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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Kuwait upgraded to Tier 2 in US trafficking report

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By B Izzak & KUNA

KUWAIT: Kuwait has been upgraded in the US State Department’s 2025 Trafficking in Persons (TIP) Report from the Tier 2 Watch List to Tier 2, reflecting what officials described as the country’s tangible progress and collective efforts to combat human trafficking. Minister of Justice Nasser Al-Sumait, who also chairs the permanent national committee for combating trafficking in persons and smuggling of migrants, said the move highlights Kuwait’s “remarkable improvement” in performance and compliance with international standards.

He noted that recent legislative reforms included the issuance of a residence law in late 2024, which tightened penalties for trading in residence permits and criminalized employers’ withholding of workers’ financial entitlements. Kuwait also launched institutional reforms, such as developing a victim protection system and adopting a national anti-trafficking plan running through 2028.

The public prosecution said in a statement the upgrade came as a result of efforts made at the legislative and executive levels and following a number of practical steps. It said that it has reorganized the Capital prosecution to become specialized exclusively in dealing with trafficking in persons and migrant smuggling cases, besides unifying investigation procedures in such cases.

The public prosecution is a member of the permanent national committee to combat trafficking in persons and migrant smuggling, which coordinates efforts of various bodies related to combating such crimes.

Acting Director General of the Public Authority of Manpower Rabab Al-Osaimi described the Tier 2 designation as the result of “solemn efforts” across legislative and executive bodies, particularly in safeguarding labor rights. She emphasized the authority’s role in streamlining procedures, training staff and enhancing cooperation with local and international partners to counter cross-border crimes. She added that the authority improved the system of adding more protection to the rights of workers and dealing thoroughly with complaints.

But the US report said that despite the upgrade, some challenges remain, including a lack of progress in convicting traffickers and a continued need to address issues in the kafala (sponsorship) system. The US report said the upgrade “reflects a significant improvement in its anti-trafficking efforts”, adding that the government identified more victims at government-run shelters and improved training for law enforcement. The government also launched anti-trafficking awareness campaigns targeting foreign workers, the report said.

Officials stressed that while the upgrade marks an important milestone, it also places responsibility on Kuwait to sustain reforms, strengthen victim protections and address international observations moving forward.

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KPC highlights sector strengths; Q8 wins awards at IDCE 2025

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MANAMA: Kuwait Petroleum Corporation (KPC) and its subsidiaries are showcasing the country’s oil sector achievements and global reach at the International Downstream Conference and Exhibition 2025 (IDCE 2025) in Bahrain. The three-day event, running through October 2, draws over 9,500 industry leaders from 53 countries.

The KPC pavilion highlights the accomplishments of its subsidiaries — Kuwait Oil International (Q8), Kuwait National Petroleum Company (KNPC), and Kuwait Integrated Petroleum Industries Company (KIPIC) — in refining, marketing and integrating oil with petrochemicals. Interactive displays and advanced screens showcase how Kuwait’s energy sector is driving economic growth and strengthening its role on the global energy stage.

Q8 CEO Shafi Al-Ajmi described IDCE 2025 as “an important milestone in the journey of the refining industry.” Speaking to KUNA, he said the conference offered Kuwait an opportunity to enhance its presence regionally and internationally, forge strategic partnerships, and meet the evolving demands of global energy markets while supporting sustainable economic development.

Officials honor Kuwait Oil International (Q8), which won first place in the sustainability projects category, in addition to another award recognizing its excellence in project execution.

Officials honor Kuwait Oil International (Q8), which won first place in the sustainability projects category, in addition to another award recognizing its excellence in project execution.

Al-Ajmi noted that the conference attracted more than 50 countries, around 70 global companies, and over 200 speakers, reflecting its evolution from a regional to a global platform. “This large and diverse participation highlights the success of the conference in bringing together top experts from around the world,” he said.

The Q8 delegation, led by Al-Ajmi, presented the company’s future projects and best practices aligned with KPC’s 2040 vision. The company also won two of seven awards at the official conference dinner, including first place in the sustainability projects category for an initiative focused on environmental cleanup and promoting positive social behavior. Another award recognized Q8’s project execution, marking the successful completion of a reliability test within eight months of start-up, demonstrating operational efficiency and adherence to global standards.

IDCE 2025, hosted by Aramco and led by the Gulf Downstream Association, features more than 290 expert speakers across 130 sessions covering innovation, decarbonization and the downstream value chain. IDCE 2025 represents the collective support of Saudi Arabia, Bahrain, Kuwait, Oman and the UAE, and provides a premier platform to advance industry development and enable participation in over $100 billion of investment opportunities in refining, petrochemicals, and sustainability. — Agencies

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Kuwaiti Ambassador presents credentials to Saudi Crown Prince

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RIYADH: Kuwait’s Ambassador to Saudi Arabia Sheikh Sabah Nasser Sabah Al-Ahmad Al-Sabah, presented his credentials to Saudi Crown Prince Mohammed bin Salman on Tuesday, who received him on behalf of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz.

The ceremony took place at the Royal Court in Riyadh’s Al-Yamamah Palace, where the Crown Prince received a number of ambassadors from brotherly and friendly countries, according to the Saudi Press Agency (SPA). During the reception, Crown Prince Mohammed welcomed the ambassadors, conveying the greetings of King Salman bin Abdulaziz and his own regards to the leaders of their respective countries.

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He expressed his best wishes for their efforts to strengthen and develop bilateral relations with Saudi Arabia. The ambassadors, in turn, extended the greetings of their heads of state to the King and the Crown Prince, expressing gratitude for the warm and generous reception they received. — KUNA

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