STORY: Lebanese race to gold amid local, global economic uncertainty
DATELINE: July 22, 2023
LENGTH: 00:04:03
LOCATION: Beirut
CATEGORY: ECONOMY
 
SHOTLIST:
1. Ahmad al Hajari, a gold trader, speaking to a client
2. various of gold jewelry
3. SOUNDBITE 1 (Arabic): AHMAD AL HAJARI, Lebanese gold trader
4. various of gold ounces and coins
5. SOUNDBITE 2 (Arabic): AHMAD AL HAJARI, Lebanese gold trader
6. various of the exterior of the gold store
7. SOUNDBITE 3 (Arabic): HUSSEIN NAWWARA, Lebanese citizen in Beirut
8. various of gold pieces
 
STORYLINE:
 
Lebanon has been facing an unprecedented financial crisis amid a shortage of foreign currency reserves, causing the loss of billions of dollars in deposits. The currency collapse encouraged the Lebanese to opt for a safe investment haven for their money, namely gold.
 
Lebanese citizens capable of saving a portion of their monthly salaries believe that gold can offer them a haven for their savings which were previously lost in Lebanese banks.
 
Ahmad al-Hajari, a gold trader, told Xinhua that demand for gold at his shop increased by around 70 percent, adding that he encourages people to invest in the gold asset to protect their money.
 
Al-Hajari also said people generally ask for gold ounces and coins and not worked pieces.
 
SOUNDBITE 1 (Arabic): AHMAD AL HAJARI, Lebanese gold trader
"I want to put dollars in my house, hide money in my house, and keep Lebanese pound; people are rushing to buy ounces and coins. In the past, we used to sell one coin of gold for 60 U.S. dollars; today, it costs 450 U.S. dollars. Look at how much there is a difference in the price. The price did not go up because people rushed to buy gold; the price of gold was increasing internationally. At this time, we are not selling many worked gold pieces."
 
SOUNDBITE 2 (Arabic): AHMAD AL HAJARI, Lebanese gold trader
"The demand for gold in Lebanon has increased by around 60 to 70 percent. It has risen even worldwide. Traders in Dubai tell me they are witnessing a great demand for gold. I encourage people to buy gold using their dollars or Lebanese pound currencies, not because we have gold shops, but because gold preserves its value."
 
Head of the Gold and Jewelry Syndicate Naim Rizk told Xinhua that demand for gold ounces and coins had increased remarkably in Lebanon this year and in 2022, noting no exact figures. Still, he said 2022 recorded profits equivalent to figures achieved over the past ten years.
 
Rizk noted that the remarkable increase in demand for gold led to a significant shortage in the Lebanese market, and many merchants were forced to wait to receive imported quantities to meet the large volume of local orders.
 
Hussein Nawwara, a Lebanese citizen, said people could sell gold whenever they wanted while preserving its value during the current economic crisis.
 
SOUNDBITE 3 (Arabic): HUSSEIN NAWWARA, Lebanese citizen in Beirut
"People usually cannot find a haven during such economic circumstances and wars, so they choose gold because it preserves its value. They can sell it whenever they want. It is a haven more than the dollar."
 
The loss of people's long-time savings caused a loss of confidence in the banking sector, while many Lebanese who succeeded in withdrawing some of their money or generated new profits from their businesses preferred to invest in gold which can preserve its value, unlike paper currencies.
 
Ziad Nasreddine, an economist and researcher, attributes the rise in global and local demand for gold to the U.S. increase in its interest rates. "This measure reflects financial uncertainty similar to the events in Lebanon, which led to the collapse of the banking system," he said.
 
Nasreddine said that many Lebanese possess fresh dollars in their homes and are concerned that the American currency may lose its value, prompting them to buy gold, hoping to maintain the value of their money.
 
"The value of gold purchased in Lebanon in 2022 is worth 1.37 billion U.S. dollars which is a very high figure compared to the population of Lebanon, and therefore it is an indication of a decline of confidence in the U.S. dollar," he said.
 
Xinhua News Agency correspondents reporting from Beirut.
(XHTV)