Inside the lucrative GOLD business and why it’s so popular

 

Image result for gold scam kenya

Gold is a lucrative possession and everyone wants to own a piece of it. However, the circle of gold is highly flooded by the who is who in the society.

Just like Kenyans always go an extra mile to own a piece of land, the trend has changed and now investors use unscrupulous means of conning even states leaders to win gold tenders.

Daily Active has dived into the discussion to unearth why the yellow metal has won the hearts of many people compared to diamond around the world.

In big cities like Mombasa and Nairobi, you will see goldsmith shops full of customers looking for jewellery and also buying gold coins or bars regardless of high or low gold prices.

Gold Rush 3

Some rich people find it a smart way to invest a few thousand in the form of gold coins or bars.

The yellow metal is considered a store of value, a safe haven asset, so when investors foresee trouble ahead generally the price of gold goes up.

Gold Rush 1

Buying gold is culturally considered auspicious in some regions like the UAE.

It’s also a form of saving, as the resale value of gold is good, you can sell it anytime, anywhere, you don’t lose more money as compared to jewels.

In Dubai, parents have passed down the culture to their children of buying a lot of gold so they have something for rainy days to come.

Also, people buy gold bars as an investment so that they can exchange it for money when the need arises.

Gold is also used as collateral for a loan.

Transactions on gold require no documentation most of the time as opposed to dealing with property.

The Arabian Gulf countries like the UAE and Kuwait use it when they marry off their children.

Gold has also been used as a form of currency for millennia.

This answers the question of the Gold Rush in the world.

Here is a video of real gold:

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