Ornate souvenirs in Khan Al-Khalili market, Cairo, Egypt. [Getty]
Egyptians are turning to silver or “fool’s gold” amid skyrocketing gold prices, driven by global geopolitical tensions, central bank buying, and US economic policies, compounded by a weakening national currency and persistent inflation (around 13.9% in July 2025).
The price of 21-karat gold, the most traded variety in this country, rose from EGP3,720 (around $78) per gram in January to over EGP4,690 (around $100) by April, and over EGP5,700 (around $120) a few days ago. The price of 24-karat gold hit EGP5,354 in September and is now at EGP6,500.
Globally, gold exceeded $4,000 per ounce this month, propelled by growing fears and uncertainties regarding the international economic arena.
This surge, up to 54.3% since the beginning of this year, has made gold, a long-time cultural staple for weddings, savings, and inheritance in this country, less accessible to the general population, especially young people who want to get married.
In turn, Egyptians have adapted through financial caution, cultural shifts, and alternative strategies.
Reshaping norms
Gold is central to Egyptian marriage engagements. Bridegrooms typically offer gifts to brides, consisting of gold jewellery (rings, necklaces, or bracelets), symbolising the bridegroom’s commitment and financial ability to provide for the bride.
The engagement gift displays financial security, rooted in Islamic dowry traditions. As a tangible and durable asset, gold guarantees that the bride will have something of value to use in case of financial hardship or divorce.
The same metal has been revered in Egypt since the Pharaohs, when it was associated with wealth, divinity, and eternity. Ancient Egyptians adorned brides with gold to signify prosperity and blessings, a practice that persists in modern traditions.
The cultural emphasis on gold reflects Egypt’s historical role as a gold-producing region, a legacy that reinforces the metal’s status as a marker of prestige and celebration in weddings.
Now, the rise in gold’s price has made it unaffordable for most Egyptians, especially those with fewer financial resources.
Some people are dealing with this rise humorously and sarcastically, such as suggesting that jewellers rent out gold jewellery to financially incapable men who want to get married for the duration of the wedding or engagement party.
However, the price rise is forcing a change in the marriage culture, with some parents foregoing the gold gift requirement for those proposing to their daughters.
“I asked my daughter’s bridegroom not to buy any gold gifts for the engagement party,” Hamdi Mohamed, a trader from Cairo, told The New Arab, about a suitor who proposed to his daughter a few months ago.
Mohamed said his daughter’s bridegroom, a schoolteacher with a limited income, was already financially overburdened, as he was paying the monthly mortgage of the flat where he would get married.
“Gold prices are becoming off the reach of, not only those with limited income, but also those who are moderately financially capable,” he added.
Mohamed noted that he also had to hold his daughter’s engagement party at home to save costs.
This change in marriage culture continues to widen in scope daily. Whole communities are giving up on their addiction to gold as a requirement for engagement.
This trend is particularly evident in rural Egypt, where some villages launch initiatives to eliminate gold gifts as an engagement provision.
Another shift is how Egyptians are looking towards cheaper alternatives, including artificial gold jewellery, also known as “fool’s gold” or “costume jewellery”, due to its resemblance to real gold at very affordable prices.
Artificial gold jewellery sellers report a recent, dramatic surge in sales.
“The demand now is much higher than in the past because of the sharp rise happening in genuine gold prices,” Malak Atef, an imitation jewellery seller from Mansour, the capital of Dakahlia province, in north-eastern Egypt, told TNA. “Most people now opt for fake jewellery, much cheaper than real gold, for marriage and engagement purposes.”
Atef’s shop sells engagement rings for EGP25 (almost 50 cents) each, while bracelets sell for EGP50 (about $1). In contrast, their genuine gold equivalents are priced at tens of thousands of Egyptian pounds.
“Imitation gold is very similar in appearance to the real one,” Atef remarked. “Most ordinary people mistake it for genuine gold.”
There is also a rush towards silver, which is much cheaper than genuine gold but is also viewed as a satisfactory and beautiful alternative.
Hoarding and hedging
Most Egyptians balance tradition with pragmatism, holding firm where possible and innovating alternatives. Some use gold to hedge against economic instability, especially as the Egyptian pound dramatically loses value.
For its part, the Central Bank of Egypt (CBE) has been storing gold for several years, notably after the eruption of the Russian-Ukrainian war in February 2022. In doing this, the CBE wants to increase its gold holdings to strengthen net international reserves, which stood at about $49.5 billion in June this year.
Gold’s value in these reserves surged by nearly $1.755 billion this past September to reach $15.843 billion, compared to $14.088 billion in August.
Overall, reserves grew to 128.6 metric tonnes as of mid-2025, according to data from the World Gold Council, an association of leading gold producers that works to stimulate and sustain the demand for gold globally.
These reserves position Egypt as a major player in Africa’s gold reserve rankings, pushing it up to the 31st position globally and the third within the African continent among states with the most significant central bank gold holdings.
This aligns with global trends where central banks buy gold to diversify away from the US dollar, amid geopolitical tensions and rising gold prices.
The Egyptian pound has been at the centre of a series of depreciations in the past few years, causing it to lose most of its value against foreign currencies, especially the US dollar, the main currency for exports and imports.
While the Egyptian pound has recently appreciated slightly against the US dollar, ordinary people have little confidence that the Egyptian national currency can hold out. This lack of trust drives the bulk-buying of gold jewellery, bars, and coins.
The CBE further fuelled the gold-buying bonanza in the last four months via repeated interest rate cuts. These cuts convinced different types of investors that gold can be a haven compared to various currencies.
Economists say a slight appreciation of the national currency also encourages foreign currency hoarders to scrap their currencies for gold, a move energised by people’s fear for their savings.
“Gold is a good store of value, having the ability to protect people’s savings,” independent economist Khaled al-Shafie remarked to TNA. “Its price keeps increasing, which means that it is a good investment and a safe haven for those who have money and want to protect its value against fluctuations at this time of high economic uncertainty.”
