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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 enforces eviction of charities from private housing

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KUWAIT: Kuwait Municipality launched Thursday its first field inspection campaign to evacuate charity associations and foundations operating in private and model residential areas across the six governorates.

Private residential areas are low-density zones reserved for single-family housing, primarily intended for Kuwaiti citizens, where land is distributed through the country’s housing welfare program. In contrast, investment housing areas feature multi-unit buildings — such as apartments, duplex villas, and studios — designed for rental or ownership across all floors.

The campaign comes following a request from the Ministry of Social Affairs to Kuwait Municipality to enforce Ministerial Decision No. (206/2009) — which prohibits the use of buildings in private residential areas for any purpose other than private housing. The ministry began surveying all registered charities — approximately 84 organizations with over 200 branches across the country — earlier this month to take legal action against those located in private residential zones.

Khaled Al-Fadhli, Head of the Emergency Team at Ahmadi Municipality, told Kuwait News Agency (KUNA) that field teams had issued warnings to several charity premises over the past days, ordering them to vacate. On Thursday, the teams inspected five areas — Fahaheel, Fintas, Ali Sabah Al-Salem (Umm Al-Hayman), Sabah Al-Ahmad Residential City, and Al-Sabahiya — issuing 15 evacuation warnings. Al-Fadhli praised the cooperation of some associations that voluntarily removed their violations in Al-Ahmadi Governorate.

Al-Fadhli stressed that the monitoring teams will not tolerate any violations of Kuwait Municipality’s regulations and laws, emphasizing that field campaigns will continue over the coming days across different governorates.

This move is part of a wider regulatory reform of Kuwait’s charitable sector. Last month, the ministry suspended all charitable fundraising nationwide, citing concerns about unauthorized campaigns. Since November 2024, Minister of Social Affairs Dr Amthal Al-Huwailah has dissolved at least 30 charities found inactive after inspections. These measures are designed to eliminate inactive or ineffective organizations and ensure that resources are being used efficiently.

These reforms also align with Kuwait’s efforts to improve financial oversight and comply with international anti-money laundering standards. A Financial Action Task Force (FATF) report released in November 2024 acknowledged Kuwait’s legal framework to combat illicit finance, but pointed to enforcement challenges. Countries that fall short of FATF standards risk being greylisted or blacklisted, which can affect global financial relations. Kuwaiti authorities have since ramped up coordination among ministries to tighten control, particularly over cross-border donations. Officials say these efforts aim to uphold Kuwait’s humanitarian leadership while meeting international best practices. — Agencies

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Indian Learners Own Academy visits Kuwait Times, Kuwait News

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KUWAIT: A group of students from Indian Learners Own Academy visited the offices of Kuwait Times and Kuwait News on Monday for an interactive media tour on Thursday. Aimed at sparking curiosity and creativity, the visit gave students a glimpse into the dynamic world of journalism beyond the classroom. Thursday’s visit was the second this week, after another group of students from the academy explored Kuwait Times and Kuwait News on Wednesday.

Jana Alnaqeeb, Kuwait Times’ PR & CSR Manager, led the tour alongside members of the digital and editorial teams. The students explored various departments, including the editorial section, studio, printing press, and archives, gaining firsthand insights into how news stories are created, edited, and published. They also learned about the importance of credible reporting and how social media content is crafted to engage younger audiences.

Adding a playful twist to the visit, the team organized a game of hide and seek for the students, who dashed through the newsroom and turned the space into a lively, energetic environment.

The visit was part of the school’s initiative to blend education with real-world exposure and Kuwait Times’ ongoing mission to connect with and inspire future generations.

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AUK students unite for Gaza with ‘Play it Forward’ awareness event

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KUWAIT: The Finance Club at the American University of Kuwait (AUK) organized an awareness event titled “Play it Forward” on Wednesday, in collaboration with the Office of Student Life and 12 student organizations, to shed light on the ongoing humanitarian crisis in Gaza. Speaking to Kuwait Times, Shoroq Bukhamsin, President of the Finance Club, said the event’s primary aim was to amplify awareness. “We wanted people to remember the cause, to remember the people. It’s still relevant and it will never stop being relevant,” she said.

A key feature of the event was an emotional art exhibition titled “Gaza Habibti” by Untold Palestine, which displayed photographs of Gaza’s people before and after the war. “The gallery traces the emotional journey — beginning with life before the war, then documenting the devastation and personal stories from the current conflict,” Bukhamsin explained. “It reminds us they are not just numbers. They are souls, families, daughters and sons.”

The exhibition also included large-scale installations by regional artists, including a moving piece known as the Martyr’s Wall, which displayed photos of 1,300 Palestinians who lost their lives. “This is not even a fraction; the current death toll exceeds 50,000,” Bukhamsin noted. She extended heartfelt thanks to AUK, faculty advisors, club executives, supporting businesses, and Kuwait Times for their support and coverage.

Jumanah Al-Bloushi, Vice President of the Finance Club, said the event also featured an open market and game zone. Local businesses and food vendors participated, pledging 25 percent of their proceeds to humanitarian causes related to Palestine. Attendees were encouraged to donate through interactive games.

A performance show by ArtScene and Argan Bedaya capped the event, featuring music, poetry and storytelling in tribute to Palestinian identity and resilience. Al-Bloushi praised the collective spirit: “It’s so beautiful to see so many different organizations come together just to make this happen today.” She added, “This event is a reminder that even after a year, the Palestinian cause is still relevant and we will not let it be forgotten.”

Mishari Al-Ibrahim, a member of the Boycott, Divestment and Sanctions (BDS) movement in Kuwait, also participated in the exhibition. He emphasized the boycott as a powerful form of resistance: “Here in Kuwait, we’re pioneers and active in this field,” he said. “These events allow us to explain the different forms of boycott — commercial, academic and sports — as tools to counter normalization and raise awareness.”

He encouraged individuals to engage by staying informed and making conscious choices. “At the very least, refrain from buying targeted products and raise awareness among your family and peers,” he said. “When you have the right information, you become a source of knowledge. That’s how you become an active member of the global boycott movement and part of the change.”

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