Lebanese are rushing to buy gold amid financial instability: report

The Lebanese people and the country’s diaspora are increasingly worried about their savings in banks, as many panic given the current problems in Lebanon’s banking sector.   

This article was initially published in, translated from the Lebanese newspaper of al-Modon.

The price of an ounce of gold jumped recently, in relation to the US banking crisis, by about 10 percent, reaching its highest level in a year due to the increasing demand for it, as it is one of the safest options for stocks and currencies.   

According to al-Modon newspaper, in Lebanon, the scene seems surreal, as the Lebanese are fleeing to hedge in gold after their money was seized in Lebanese banks and their “escape” from the banks of countries that might be affected by the American banking crisis.   

The report pointed out that a tour of jewelry merchants and shops reveals the general trend of the Lebanese – residents and expatriates – as many merchants agree that the sale of gold coined has declined recently at the expense of the remarkable rise in the sale of ounces, pounds, and even bullion.  

The active movement of selling is not limited to Swiss ounces and bullion, which its owner can exchange in various countries, but also the movement of Lebanese bullion and ounces, which stimulates production.  

Head of the Gold and Jewelry Syndicate Naim Rizk said in an interview with al-Modon that the demand for unformatted gold is since it is easy to sell.   

Regarding the paying mechanisms, merchants adhere to cash transactions, blocking any other transactions, neither in Lebanese lira nor bank checks. It is only the US dollar that manages gold purchases.   

However, some gold dealers adopt payments in installments, which allows the Lebanese, who have limited ability to save, to acquire some gold coins.