Gold demand in Kuwait shows a decline - temporarily.
Rewritten Article:
Gold demand in Kuwait took a nosedive in the first quarter of 2025, plummeting by a staggering 15% compared to the same period in 2024, according to the latest report from the World Gold Council. The total demand sank to a mere 3.8 tons, from a previous 4.5 tons).
The biggest blow was dealt to the jewelry sector, which suffered a steep 20% decline, dropping to a measly 2.4 tons. Even the usually stable investment sector, including gold bars and coins, felt the pinch, slipping by 5% to 1.4 tons.
This downward spiral coincides with a dramatic surge in global gold prices, which climbed approximately 25% since the beginning of 2025. Much like a echo around the world, the local market mirrored this trend, with 24-karat gold prices leaping by 6.5 dinars.
Despite a small dip (2%) in prices toward the end of April, the early surges had already dampened consumer enthusiasm. Experts pinpoint economic uncertainty and whispers of an impending global recession as the culprits driving this trend. Many residents, both locals and expats, have tightened their financial belts, scaling back their gold purchases as a preventative measure.
Looking back on the past five years, Kuwait has gobbled up 86.4 tons of gold, establishing itself as the fourth-largest Arab consumer, trailing behind Saudi Arabia, the UAE, and Egypt. Of this, 64.5 tons were dedicated to jewelry, while 21.9 tons were invested in gold bars and coins.
While 2024 also experienced a 6% reduction in total demand, the appetite for gold as a hedge asset persisted, with investment in gold bars and coins actually rising by 16%. Per capita gold consumption clocked in at 3.66 grams.
Intriguingly, gold imports increased in 2024, despite the lower demand. This might suggest anticipation of renewed interest among consumers or strategic positioning by traders. Kuwait's imports of gold, jewelry, and precious metals skyrocketed by 10.9% to KWD 712.74 million, propelled by a 17.8% surge in raw gold imports.
Simultaneously, imports of precious stones and pearls swelled by 10.3%, while artworks and antiquities witnessed a jaw-dropping 250% increase, hinting at a shift in luxury investment preferences among Kuwaitis.
As the market readjusts, savvy gold buyers are veering towards lighter, tradable gold bars (either 100 or 50 grams) due to their liquidity and potential for quick returns. Experts predict a rebound in demand if the price volatility settles, particularly if economic concerns abate.
- Interestingly, despite a decrease in gold demand in 2025, Kuwaitis still showed a keen interest in gold investments, with an increase in gold imports seen in 2024, possibly indicative of anticipation or strategic positioning by traders.
- The jewelry sector, a staple in Kuwaiti spending, experienced a significant drop in 2025, but it is expected to rebound if economic concerns abate and price volatility settles.
- In 2024, contrary to the overall market trend, traditional investing in gold bars and coins saw a rise, demonstrating the consistent appeal of gold as a hedge asset among the Kuwaiti population.
- As realistic financial planning becomes essential among Kuwaitis in light of economic uncertainty, it is plausible that there will be a shift towards investing in real-estate, considering its potential returns and stability, rather than luxury jewelries in the coming years.
