A steady rise in gold value is expected worldwide in 2024 with prices slightly hovering above the $2,100 mark as the global gold rush continues, the chief of a top securitisation company has said, citing industry analysis.
Industry analysis points towards new record highs and moderate gains. Building on this momentum, most analysts predict an incremental increase in gold prices in 2025, a bolstering increase of up to 25% in 2026, and a five-year forecast that points towards the $3,000 mark.
With this optimistic outlook, Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., a Luxembourg-based securitisation company, explains why savvy investors in the UAE and wider GCC region should seize the moment to invest in gold to effectively diversify their portfolios.
After the shipping of approximately $300 million worth of gold in 2023, the UAE’s ongoing joint venture (JV) with the Republic of Congo is now aiming to quadruple shipments of gold from the central African nation this calendar year.
Achieving this would result in transporting between 12 to 24 tonnes of gold per year from Congo to the UAE, with its subsequent impact enabling investors with increased access to an asset that has proven its value throughout history while also serving as a hedge against inflation and deflation.
This move emphasises strategic collaboration and boosts investor confidence in the UAE’s economy and status as a major gold trading hub, resulting in increased investment activity with stability and reliability in the country’s gold sector.
Although in 2023, the retail gold jewellery market shrank by 15% over the previous year, World Council data shows that investors in the precious metal saw a 10-year high for their gold bars and coins.
This supports the upbeat predictions for the future and investors should continue to monitor market conditions while sitting on the sidelines.
Kooijman explained: “For astute investors, knowing the differences between investing in and owning gold is essential. The UAE, particularly Dubai, provides a distinct advantage in the gold market by offering tax-free shopping and competitive pricing, making gold more accessible than in other global destinations.
“Regional investors are becoming increasingly aware of this, capitalizing on this convenient geography to diversify their portfolios; and we are seeing an influx of Bahrain-based investors follow this trend.”
With Bahrain’s gold reserves remaining unchanged at 4.67 tonnes in Q4 of 2023 and valued at $6.648 million, the gold market remains a safe and authentic place to trade in precious metals.
Given the critical importance of educating regional investors so that they can bolster their financial standing and contribute to the wider economy, Kooijman, was recently on-ground in Bahrain to guide investors accordingly. Investors who have worked with Kooijman since the company’s inception four years ago have witnessed a minimum average ROI of 86% and more than 48 consecutive months of positive returns to more than double their initial investment. – TradeArabia News Service
