KUWAIT CITY, June 28: Despite the luster of gold even in times of crises, this appeal extends to all precious metals, including silver. A number of precious metal traders in Mubarakiya Market said they expected a silver price hike due to the Israeli-Iranian war. Silver jewelry sellers in the market disclosed that the price per gram now ranges from 360 to 400 fils, excluding the ‘workmanship’ fee — an increase of about 11 percent compared to the previous prices. They added that if the ‘workmanship’ fee is included, the price ranges from KD1.5 to KD2.
They attributed the recent increase in the price of ‘white metal’ to the remarkable increase in demand among citizens due to the regional developments. They stated that some people buy silver as an alternative to gold, whose price has increased dramatically. Furthermore, a group of investors prefers to store silver, along with gold, to benefit from a small profit margin or as a guarantee against the decline in paper currencies, amid price increase expectations due to the escalation of tension in the region. Amir Franji, a silver shop manager, told the newspaper that silver prices have increased from 360 to 400 fils per gram last month, with expectations of further price increases in the coming days due to the ongoing tensions between Iran and Israel. He confirmed the high demand for silver, especially since it is an alternative to gold for middle-income earners. “Purchasing gold jewelry is currently beyond the means of the not-so-well-off, with the price of a 21-karat reaching nearly KD30 per gram.
Nevertheless, investing in silver is completely different from investing in gold, as anyone who sells silver jewelry loses 30 to 50 percent, unlike gold, which is bought and sold based on the price ceiling set by the Ministry of Commerce and Industry,” he explained. Silver merchant Hussein Ali agreed, saying, “Indeed, there has been a noticeable increase in silver sales during this period; particularly after the rise in gold prices as a result of the Iran-Israel war, because gold is considered a safe haven for investors amid political fluctuations.” He disclosed that Kuwait imports silver from Switzerland, the United Arab Emirates (UAE) and Italy. He said Swiss silver is the best type and most preferred by customers; hence, the price is around 15 fils higher than other types of silver. In a related development, Ahmed Abdul Redha, a gold trader, pointed out that silver — like other commodities — is vulnerable to political tensions sweeping the world. However, he believes that investing in silver is profitable in the long term, as those who buy a kilogram of silver will not receive a profitable return for at least five years. He cited the fact that a kilogram of silver 20 years ago was worth a little more than KD50, while the current price per kilogram is KD417. Gold trader Hamad Al-Saeedi stated that silver jewelry sales have been active since the outbreak of the war, with sales increasing by approximately 15 percent; but there has been no significant price increase, as the price of a gram of silver increased by around 15 fils. He revealed that the price of silver three months ago was less than 290 fils per gram and rose to 360 fils during Eid Al-Adha. Despite this, some traders sell one gram of silver at 410 fils, he added.
He mentioned the multiple uses of silver in technology industries, tablets, solar panels, nuclear reactors and nuclear medicine. He thinks the price of silver will rise dramatically over the next five years with the proliferation of silver-related industries, considering the world is on the cusp of the Fourth Industrial Revolution, which relies heavily on silver. He said a group of investors prefers to store silver with gold to benefit from a profit margin, even if small, or as a guarantee in the event of a decline in paper currencies, especially since the value of the dollar is affected by international political events. Gold trader Bou Yaacoub noticed the revival of the silver market, as some consider silver an alternative to gold, whose price rises based on global political and financial events. He explained that the price of a gram of a crafted silver could reach KD1.500; while the price of a silver bar depends on its weight, as it is sold without the ‘workmanship’ fee and this is different from silver jewelry, whose price includes the ‘workmanship’ fee, so the price of a gram could range from KD1.500 to KD2 depending on the work method. He indicated that the best types of silver in the local market are 925 karat and 999 karat.
By Najeh Bilal
Al-Seyassah/Arab Times Staff