A proposal to establish a gold bank in Egypt... and merchants are beginning implementation steps

Companies operating in the manufacture and sale of gold jewelry in Egypt have renewed their proposal to establish a gold bank to help provide various products in a market governed by rules and laws.

Gold bank in Egypt

Egyptian businessman Ahmed Abu Hashima proposed establishing a gold bank in Egypt that would keep Egyptians’ credit in a safe place instead of keeping it at home, which was praised by Dr. Naji Farag, advisor to the Minister of Supply for gold industry affairs.

Keep the gold

The advisor to the Minister of Supply for gold industry affairs said: “The proposal is good and useful, and to establish a gold bank with an interest rate of 2.5 or 3% for people who like to keep their gold, and with this proposal the interest will benefit the citizens and the state,” stressing that gold increases the strategic reserve at the central bank and adds dollar strength to the bank. Central.

The Egyptian Stock Exchange began establishing a specialized exchange for gold through the commodity exchange, which requires logistical procedures from warehouses and storage controls for gold to facilitate the process of trading it in real time.

The first fund to invest in gold

The first fund to invest in gold was recently launched in Egypt with a license from the Financial Supervision Authority, by issuing documents with a value starting from 10 pounds, through which the documents are traded and profits are made while keeping the original gold in a company specialized in preserving metals.

Ahmed Abu Al-Saad, CEO of Azimut Company, which founded the Gold Investment Fund, pointed to the advantages provided by the Fund, including the ability to start investing with small amounts and without a maximum limit, in addition to ensuring dealing in certified and guaranteed gold, while saving a portion of the cost of obtaining gold, such as the cost of manufacturing that it obtains. It is provided by merchants, in addition to providing safekeeping services in places approved and registered with the records of the Financial Supervisory Authority, which protects investors’ gold possessions from theft or damage.

Gold market

For his part, Dr. Fadi Kamel, CEO of Egypt Gold Company, said that the Egyptian market is one of the oldest gold markets in the world and the Arab region, but the development witnessed by Arab markets such as Saudi Arabia and the Emirates made it ahead of the Egyptian market.

He explained that there is a great demand for investment in gold in Egypt, and therefore the market must be developed to keep pace with economic events and exploit public interest in regulating the market and establishing a central bank for gold, similar to markets similar to Egypt.

He pointed out that his company has already begun to take the first step towards establishing a gold bank by diversifying the gold products offered to the public, whether jewelry or bullion of different types, in addition to using the installment system in selling bullion, which starts from a quarter of a gram up to a kilogram, in addition to creating a subsidized card. With gold, it can be used with the guarantee of the gold that will be deposited.

He stated that gold is primarily a savings tool and not an investment tool, because it depends on long time, and is not eligible for speculation, which depends on short time.