Gold Prices Surge in Yemen, Reaching Levels Not Seen Since 2008
Sana’a & aden - Yemeni jewelers are reporting unprecedented increases in gold and jewelry prices, mirroring a global trend and creating significant economic ripples within the country. The price jump, the largest since the 2008 financial crisis, is exacerbating financial pressures for Yemeni citizens already grappling with a complex economic and humanitarian situation.
The surge is driven by both international market forces and Yemen’s unique internal economic divisions. While global economic uncertainty fuels demand for gold as a safe haven asset, the significant disparity in exchange rates between regions controlled by different authorities is dramatically widening the price gap within Yemen itself. This impacts consumers and traders alike, creating both concern and, for some, investment opportunities.
in Sana’a, a gram of 21-karat gold now costs approximately 63,000 Yemeni riyals (roughly $118 USD), while in Aden, the same gram exceeds 193,000 riyals ($119 USD) – a 4,000 riyal increase over previous prices. Eighteen-karat gold is currently trading at around 55,000 riyals ($103) in Sana’a and 165,000 riyals ($102) in Aden.
The vast difference in pricing stems from the exchange rate: the US dollar is valued at approximately 533 riyals in Sana’a, compared to 1,620 riyals in Aden. This monetary fragmentation is a key factor driving the diverging gold markets within the country.
Local gold traders have expressed mixed reactions.Some are worried about the sustainability of the price increases and the potential impact on demand, while others view the situation as a rare investment opportunity. Global analysts caution that delayed investment decisions could lead to missed gains or exposure to a potential price bubble.
The current situation highlights the intersection of global economic turmoil and Yemen’s ongoing crises, positioning gold as a central element in both the international and domestic economic landscapes.
