Gold a safe bet for Saudis despite VAT increase – ZAWYA

Gold a safe bet for Saudis despite VAT increase – ZAWYA

Gold a safe bet for Saudis despite VAT increase | ZAWYA MENA Edition HomeMarketsCommoditiesArticleGold a safe bet for Saudis despite VAT increase Gold may be able to play a role in restricting the economic damage caused by the COVID-19 pandemic    Saudi jewellers wearing protective face masks stand as people shop at a jewellery store during the holy month of Ramadan, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia May 5, 2020. JEDDAH: Gold plays a dual role. It is an investment and luxury commodity in times of economic prosperity, but also a haven in times of crisis.Gold may be able to play a role in restricting the economic damage caused by the COVID-19 pandemic, as precious metals are considered a tool for hedging against inflation and depreciation.Unlike other commodities like oil, gold has been universally accepted as a form of payment and has a power surpassing that of any other commodity. It has the ability to control the expansion of credit and is a favorable hedge against inflation. It can also function as a safe bet against declining currencies.Salah Salem Al-Amari, general manager of the Salem Hasan Al-Amari Sons Co., has more than 35 years