Gold Price Disparity in Yemen Exceeds 200%, Reflecting Deep Economic Divide
Sanaa/Aden, Yemen – A staggering price difference for gold – exceeding 200% – has emerged between cities controlled by opposing authorities in Yemen, highlighting the country’s deepening economic fragmentation amid ongoing conflict. In sanaa, citizens can purchase three times the amount of gold for the same price as in Aden, a disparity equivalent to three months’ salary for a government employee (484,000 riyals).
The dramatic divergence stems from the 2014 outbreak of war, wich effectively split Yemen into separate spheres of influence and led to an economic blockade and the deterioration of the Yemeni riyal. This has created two distinct markets governed by differing exchange rates, mirroring a similar economic division experienced by Lebanon in the 1980s.
“I came to sell the only gold necklace I own to buy food for my children, but the price has dropped a lot,” lamented Umm Ahmed, a 45-year-old woman in Aden, forced to sell her possessions to afford basic necessities.
In Sanaa, gold trader Muhammad Al-Sarafi acknowledges the price gap presents a risky, yet perhaps lucrative, investment chance. “The difference in prices creates an unmissable investment opportunity, but the risks are very high.”
Economist D. Abdullah Al-Maliki warns of the long-term consequences. “This division will lead to complete collapse if urgent action is not taken.”
The crisis is forcing Yemenis to make desperate choices. Families are reportedly searching through jewelry boxes to sell gold for food, while others hide their valuables fearing they will be compelled to sell.Ali Al-Tajer traveled from Sanaa to Aden only to discover his gold was worth less than a third of its value.
The situation is fueling uncertainty and potentially reversing migration patterns, with expectations of a new wave of people moving from Aden to Sanaa seeking better prices. The future of the Yemeni currency remains precarious, raising the question of whether prices will unify or further fragment, exacerbating the suffering of the population.
