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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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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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Deputy PM stresses cooperation amid Gaza crisis at summit

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AL-ULA, Saudi Arabia: Kuwait’s representative to the Munich Leaders Meeting, First Deputy Prime Minister Sheikh Fahad Al-Yousef Saud Al-Sabah, underlined the country’s commitment to regional dialogue and international cooperation during the high-level gathering in Al-Ula, Saudi Arabia.

The three-day meeting, held at the Maraya Theater and running through Thursday, brought together senior decision-makers and global experts to discuss pressing issues including international trade, regional crises, energy transition, maritime security and nuclear safety. The conference comes days after US President Donald Trump unveiled a 20-point peace proposal for Gaza, aimed at ending the Zionist entity’s war on the Palestinian territory — a plan that enjoys wide international backing, including from Kuwait.

Speaking to the Kuwait News Agency (KUNA) on the sidelines of the conference, Sheikh Fahad said Kuwait’s participation “confirms our keenness to support regional dialogue and strengthen international cooperation.” He highlighted discussions on urgent humanitarian issues in Gaza and the occupied Palestinian territories, noting that “participants agreed that sustainable regional security cannot be achieved amid ongoing (Zionist entity) aggression.” He also warned of the consequences of escalating military conflicts, describing the attacks on Qatar and Gaza as “a blatant violation of international law and a direct threat to collective Gulf and regional security.”

Sheikh Fahad added that sessions addressed maritime security, energy safety, the elimination of weapons of mass destruction, as well as food and water security, economic challenges and shared security threats. He reaffirmed Kuwait’s commitment, as the current chair of the Gulf Cooperation Council, to collective security, unifying Gulf positions, and enhancing regional and international partnerships.

Secretary-General of the Gulf Cooperation Council Jasem Al-Budaiwi praised Saudi Arabia for hosting the meeting, describing it as “an indication of the Kingdom’s pivotal role in promoting international security and supporting multilateral dialogue to address regional and global challenges.” He also thanked Saudi leadership and Foreign Minister Prince Faisal bin Farhan for their “distinguished preparation and organization” of the event, which drew senior officials from across the globe.

The meeting aimed to provide a platform for exchanging perspectives on current regional and international security challenges, emphasizing the importance of dialogue and peaceful solutions in achieving just peace and sustainable development. Sheikh Fahad and the accompanying Kuwaiti delegation, including Ambassador Najeeb Al-Bader, Assistant Foreign Minister for GCC Affairs, departed Al-Ula on Wednesday after concluding their participation in the conference. — Agencies

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