Gold Localization
Economic 2025/02/19 Yasser Al –Mitwalli The government decision to localize the gold and precious metals industry is of great importance, as an important economic decisions, to consider gold, the pillar of the guarantee of the economy of any country of the collapses that may occur in periodic financial crises, and for causes of them naturally during periods of the economic cycle, and other political, as well as wars and others.
This decision comes consistent with what I dealt with in two previous articles published here in the "Al-Sabah" economy, as the first was titled (The forgotten wealth), in December 2024, and the second article was titled (Hedging with Gold a Safe Investment), in a month March of the same year (2024).
I was alerted to them the importance of taking advantage of global experiences in investing gold as an effective way to diversify sources of income and wealth, and as a safe alternative to the monetary reserve represented by the dollar, in order to avoid sanctions imposed by the American federalism on the countries, because it is the owner of the dollar currency, and there are many evidence and close to many of Countries.
This wealth has become forgotten and its page is folded after the world turned into a lack of evaluation of its currencies the size of its gold, and perhaps what brought back to mind the truth of the importance of this forgotten wealth (gold), the economic sanctions that some countries have been imposed by imposed by the great countries for various reasons, with the sanctions body Economic, and many examples available soon and not far from our current reality.
The nearest example that can be remembered is the embarrassing economic sanctions of Venezuela, which prevented the availability of what blocks the livelihood of its people, forcing its government to refer to the wealth of gold and act by selling it in order to confront the economic blockade that was imposed on it.
The expectations of economists also indicate that Russia may have to sell its gold reserves, as the last option in the face of US sanctions, if long.
This image became clear with the prolongation of the Russian-Ukrainian war, with the escalation of the ceiling of US-European sanctions on Russia, and Russia is also putting this possibility as the last option after the elements of confronting the siege and sanctions are exhausted. Accordingly, it seems that the
Iraqi government
is trying to benefit from these bitter experiences, and therefore it
decided to give the gold a priority to pay attention by localizing its industry and supporting workers in this sector as an optimal option.
The government's awareness of the importance of gold reserves as a guaranteed reserves in the face of emergency and critical conditions makes it offered this sector a great importance in the future. It is useful to note that
Iraq occupies an advanced rank in the cash gold reserves, as it is the fourth Arab and thirty globally, and by 152 tons of cash gold.
Perhaps the endeavor of the Central Bank of Iraq to increase the volume of
Iraq's gold reserves reflects its importance in the balance and durability of the country's economy.
The new government initiative in localizing the gold industry will contribute to
encouraging citizens to invest in gold, and
restore the idea of its acquisition of decoration and saving when needed, as
this decision will achieve economic feasibility by maintaining gold from exporting it abroad, providing difficult currencies as a result of imports, and providing job opportunities For unemployed youth in this profitable profession.
The next important step is that it is necessary to adapt and amend the laws and procedures necessary to facilitate the birth of this important industry in attracting capital, whether internal or external, which has priority to attract investors to invest in a safe and profit field. https://alsabaah.iq/110413-.html
