Gold Prices in Yemen Diverge Dramatically, With Aden Prices Tripling Those in Sanaa
A staggering price disparity in gold is emerging between Yemeni cities, with the price of a gold pound in Aden reaching nearly three times that of the same weight in Sanaa. The difference, currently exceeding 982,250 Yemeni riyals, represents a 203% price gap – roughly 17,000 riyals per gram – and underscores a deepening economic fracture within the war-torn nation.
This unprecedented divergence isn’t a typical market fluctuation; it’s a symptom of Yemen’s prolonged political and economic division. The gap impacts everyday Yemenis, driving a rush to gold as a perceived safe haven while together eroding confidence in the national financial system. economists warn the situation is unsustainable and could lead to further economic instability, but also presents potential, albeit risky, investment opportunities.
Years of conflict, coupled with a fractured central bank and independent currency printing in different regions, have created essentially two separate economic realities.”This is not one market, but two separate economic worlds,” explained one economist, highlighting the severity of the situation. The disparity mirrors ancient economic divisions,such as that experienced between East and west Germany,but analysts fear the current context is even more volatile.
The widening gap is fueling capital flight as citizens struggle to navigate conflicting prices and values. The situation is prompting savers to seek refuge in precious metals, while investors are urged to proceed with caution. The core question now is whether Yemen will move towards economic unification or a complete economic split, a scenario analysts believe could “explode at any moment.”
