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 dealer stands near the screens showing the Korea Composite Stock Price Index (KOSPI), (left), and the foreign exchange rate between US dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea on Sept 10. (AP)
TOKYO, Sept 10, (AP): Asian shares mostly rose in early Wednesday trading, echoing record rallies on Wall Street after the latest update on the job market bolstered hopes the US Federal Reserve will cut interest rates. Japan’s benchmark Nikkei 225 gained 0.9% to finish at 43,837.67. Australia’s S&P/ASX 200 added 0.3% to 8,830.40.
South Korea’s Kospi jumped 1.7% to 3,314.66. Hong Kong’s Hang Seng rose 1.1% to 26,223.30, while the Shanghai Composite edged up 0.2% to 3,814.63. Uncertainty is still in the air over US-China tariff issues as bilateral talks continue. US President Donald Trump has raised taxes on imports from China, triggering a tit-for-tat tariff war.
The U.S. is currently charging an additional 30% tariff on Chinese goods and China is charging a 10% tariff under a de-escalation deal reached in May. On Wall Street, the S&P 500 rose 0.3% and squeaked past its all-time high set last week. The Dow Jones Industrial Average climbed 196 points, or 0.4%, while the Nasdaq composite gained 0.4%.
They likewise set records. Traders have become convinced that the Federal Reserve will cut its main interest rate for the first time this year at its next meeting in a week, in order to prop up the slowing job market. A report on Tuesday offered the latest signal of weakness, when the US government said its prior count of jobs across the country through March may have been too high by 911,000, or 0.6%.
That was before President Donald Trump shocked the economy and financial markets in April by rolling out tariffs on countries worldwide. The bet on Wall Street is that such data will convince Fed officials that the job market is the bigger problem now for the economy than the threat of inflation worsening because of Trump’s tariffs.
That would push them to cut interest rates, a move that would give the economy a boost but could also send inflation higher. A lot is riding on Wall Street’s hope that the job market is slowing by just the right amount: Investors have already sent US stock prices to records because of it. Inflation also needs to stay at a reasonable level, even though it looks tough to get below the Fed’s target of 2%. In the bond market, the yield on the 10-year Treasury rose to 4.08% from 4.05% late Monday.
Undersecretary of the Kuwaiti Ministry of Finance, Aseel Al-Munifi
KUWAIT CITY, Sept 9: Undersecretary of the Kuwaiti Ministry of Finance, Aseel Al-Munifi, on Tuesday emphasized the need to develop the tax system and achieve financial sustainability to promote economic integration among Gulf Cooperation Council (GCC) member states.
Speaking at the 15th meeting of the Committee of Heads and Directors of Tax Administrations in GCC countries in Kuwait, Al-Munifi said the meeting is part of ongoing efforts to coordinate GCC tax authorities and develop mechanisms to unify joint tax policies that serve the interests of member states and their populations.
She expressed hope that the annex to amend the unified excise tax agreement would be signed at the upcoming financial and economic cooperation meeting scheduled in Kuwait next October, which will bring together the GCC finance ministers. Al-Munifi also commended the heads and directors of tax authorities and the Unified Tax System Working Group for their efforts in preparing studies, working papers, and recommendations.
Khalid Al-Sunaidi, Assistant Secretary-General for Economic and Development Affairs at the GCC General Secretariat, said the meeting continues the process of cooperation among GCC countries in tax policies. He noted that the aim is to unify tax frameworks, enhance economic integration, and support competitiveness at the regional and international levels.
Al-Sunaidi added that discussions at the meeting included outcomes from the GCC Unified Tax System Working Group on redefining energy drinks to reduce the consumption of unhealthy products, and plans to establish a comprehensive electronic system for all types of indirect taxes, alongside other related topics.
During the meeting, GCC tax heads and directors reviewed recommendations and decisions from the 14th meeting and previous sessions, submitting them to the undersecretaries of finance in the GCC. It was agreed to form a technical working group to develop the electronic system for indirect taxes and to redefine energy drinks in the Unified Excise Tax Agreement according to international definitions and classifications.
The 15th GCC Tax Committee meeting held in Kuwait.
Asian shares mostly rise, cheered by Wall Street rally to more records
Kuwait envoy urges using digital tools for peace, recovery
Cabinet approves draft laws on real estate, children
-
Latest News15 hours agoCommittee reviews efforts to counter cyber threats
-
Politics24 hours agoIllegal Mobile Vehicles and Shops Targeted in Kuwait’s Ahmadi Clean-Up Drive
-
Business24 hours agoKuwait aims to attract value-added direct investments
-
Latest News16 hours agoAmir appoints new Army chief, undersecretary
-
Latest News13 hours agoZAHI joins talabat as the platform expands offering beyond food
-
Latest News12 hours agoKRCS signs cooperation deal to accredit first aid, CPR courses
-
Business20 hours agoKuwait urges GCC tax reform for economic integration
-
Latest News6 hours agoKuwait envoy urges using digital tools for peace, recovery