Egypt ranked third globally in terms of gold demand in the first quarter of 2023.
In the first quarter of 2023, investment demand for gold products (bullions and coins) accounted for more than 43% of total domestic demand. This confirms the increasing investment awareness of individuals and the use of gold as a financial instrument.
Egypt recorded the highest rates of demand for bullion and gold coins in the first quarter of 2023. Egyptians bought 7 tons of bullion and gold coins, an increase of 100% over the same period in 2022, according to data from the World Gold Council.
The demand for jewelry increased by only 6% in the first quarter of 2023. Although this is the highest rate of demand for jewelry since 2015, it is not a significant increase. This suggests that the increase in demand for gold in Egypt is driven by investment, rather than jewelry purchases. This supports the view that investment awareness has increased dramatically in the Egyptian market.
Egypt accounts for 2.23% of the total global demand for gold.
Egypt's gold reserves have increased to 125.7 tons. Gold reserves now constitute 25% of its currency basket, which is the highest increase since the first quarter of 2018.