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3. Gold Rush in Lebanon: Between Speculation and Shortages

Lebanese buyers are increasingly turning to precious metals, especially gold and silver, whose international prices have been climbing steadily to record highs.

These days, it can take up to a week to obtain a gold bar and nearly two weeks for a kilogram of silver. A few weeks ago, people had to spend over an hour in line to make a purchase. The physical supply of gold and silver bars has become increasingly scarce.

The reason is simple: demand for gold and silver is soaring while supply is dwindling. Lebanese owners of precious metals are unwilling to sell. This dynamic quickly drives up sales commissions and creates opportunities for a black market. It is clear that the rise in gold and silver prices is not a Lebanese phenomenon, but a result of global geopolitical tensions and economic uncertainty.

$120 Above the Usual Average

Faced with strong demand, most Lebanese dealers have raised the price of an ounce of gold by $120 to $130 above the international rate, compared with the usual gap of $50 to $70. Some merchants are also serving Turkish buyers, who are willing to pay up to $375 extra per ounce to secure supplies.

In Turkey, the scenario is the same: strong demand and limited supply. Many Turkish dealers have stopped selling their gold, either to capitalize on potential future global price hikes or because restocking has become difficult. This scarcity is fueling the black market and putting local buyers at a disadvantage.

Demand for Gold in Lebanon

In Lebanon, domestic gold ounces are faring no better than Swiss ones. Supply remains tight, with waiting times ranging from a week to ten days to secure them. Some dealers can obtain gold more quickly, but at prices higher than Swiss gold, even though domestic gold is normally $40 to $50 cheaper per ounce.

The growing gap between local and international prices is making it increasingly difficult to meet demand. Lebanon seems to be following the same path as Turkey, with an unprecedented influx of buyers and limited supply, slowly turning the market into a potential black market.