Saudi women are opting for safe haven investments in gold amid concerns over global economic downturn, according to local media.
Saudi women fear losing their capital based on “the capital is coward” theory, says businesswoman Nora Al-Rafi.
Many businesswomen, employees and housewives have now started to invest in gold again, she said.
Businesswoman Fatima Al-Falaqi said that gold remains the only safe option for women’s savings as many of them who invested in real estate and stocks had incurred huge losses.
Economist Ihsan Bu Hulaiga says several countries were also shoring up their gold investments as a safe bet in view of their concerns over violent conflicts and global economic downturn.
This is because any slump in global economy reflects negatively on the global markets and positively on gold.
There is no chance of any major fluctuation in current gold prices.
Bu Hulaiga suggests that women should hold on to gold because it is a strategic choice compared to stocks.
Gold may fluctuate up and down, but cannot lead to losses in the long term, he explained. But he has a word of caution. “Investments in gold should take place with the assistance of experts who follow metal prices.
Economic analyst Omar Attia says: “We always see a clear inverse relationship between gold and the US dollar as a falling dollar increases the value of other major currencies.
This increases the demand for commodities including gold and pushes up the prices, said the analyst.
When the US dollar starts to lose its value, investors look for alternative investment avenues to protect their holdings. Gold is an alternative, Attia said.
Source: Arab News