Gold a safe bet for Saudis despite VAT increase

Gold a safe bet for Saudis despite VAT increase

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 experience in the world of gold and jewelry. He spoke to Arab News about the importance of gold and its significance in these turbulent times.

"The global gold market has been significantly affected this year due to the pandemic, especially since shops remained closed for a long period of time and salaries had to be paid. But in Saudi Arabia, our government stood beside its people and supported us through the SANED insurance program and helped mitigate