Gold Prices Soar too Record Highs in Yemen, Exceeding 1 Million Riyal Per Ounce
Sana’a, Yemen - Gold prices in Yemen experienced an unprecedented surge today, rising by 14,479.86 Yemeni riyals in a single day and surpassing 1 million riyals per ounce - a new historical record. The dramatic increase is fueling both anxiety and prospect as Yemenis grapple with a collapsing currency and deepening economic instability.
The spike reflects a desperate flight to safety amid ongoing conflict and hyperinflation, eroding the value of the Yemeni riyal and prompting citizens to seek refuge in the traditionally stable precious metal. Experts warn that while gold may offer a hedge against economic turmoil, the current volatility carries meaningful risks. Every minute of delay could cost investors thousands of riyals, according to market observers.
“Customers ask me about the price every minute!” exclaimed Ali Al-Tajer, a gold merchant in Sana’a, illustrating the frantic pace of the market.Dr. Al-sarrari described the situation as “a reflection of a harsh economic reality, not just a bubble.”
The crisis is acutely felt by ordinary Yemenis. Many are now forced to sell family heirlooms to cover basic necessities, while the prospect of affording traditional wedding jewelry has become increasingly unattainable. Umm Muhammad voiced her sorrow at being compelled to sell her family’s jewelry, while Abu Abdullah expressed relief that a prior investment in gold had secured his family’s future.
The surge in gold prices is directly linked to the protracted war in Yemen and the subsequent devaluation of the riyal. Coupled with global inflationary pressures and broader political instability, demand for gold has skyrocketed. Analysts caution that the current rally mirrors past crises, such as those experienced in 2008 and 2020, and could be subject to sharp corrections.
“Gold today is not only an ornament, but a defense against recession,” analysts stated, emphasizing the shifting perception of gold from a luxury good to a vital financial safeguard. Investors are now urged to carefully review their portfolios and prepare for potentially severe fluctuations in the coming months.
