Unprecedented Crisis in Lebanese Gold Markets Due to Rising Global Prices and Supply Shortages, Leading to Suspension of Price Fixing and the Emergence of a Black Market.
Lebanon’s gold markets are experiencing a severe and unprecedented crisis, coinciding with a significant rise in global prices. The price of an ounce exceeded the $4,200 mark on Wednesday for the first time in history, causing confusion and stagnation in the local market, with a lack of clarity regarding pricing and supply mechanisms.
Amid this record rise, informed sources report that most jewelry stores and gold traders in Lebanon have stopped fixing prices or making advance reservations based on the global price, and have informed their customers of this decision without specifying a date for resuming this mechanism.
The crisis appears to be deeper than just price fixing, as reports indicate a severe shortage of gold and silver bullion in the Lebanese market.
The reason for this shortage is attributed to the significant pressure on global mining companies, where demand for bullion exceeds the companies’ production capacity.
Regarding price fixing, sources confirmed that the price cannot be fixed in any way at the present time. They pointed out that anyone who fixed the price in the previous period will have the bullion delivered to them after three months, due to the severe shortage of supply.
The shortage of gold and silver bullion among traders has led to the emergence of a black market where an ounce is sold at prices exceeding the global price by about $200, due to high demand and lack of regular supply.
Observers believe that this situation may continue in the coming days, especially in light of concerns about continued turmoil in global markets and increased demand for gold as a safe haven in times of crisis.
source: 961 today
