Gold prices surge: a Lebanese rush to buy and warnings of fraud

Gold shocked the world with an unprecedented surge, as the price of an ounce soared past $4,300, a record high in modern history. This marks an increase of over 50% since the start of the year and more than 100% in just two years. The historic jump has sparked intense activity across global markets, underscoring the importance of the yellow metal as a safe haven in times of political and financial turmoil, especially in a country like Lebanon, which continues to grapple with the fallout of the worst economic crisis in its history.

Several factors lie behind this dramatic rise in gold prices. Chief among them are geopolitical instability, escalating trade tensions between the United States and China, and a surge in global demand compared to last year. The U.S. Federal Reserve’s decision to cut interest rates further boosted gold’s appeal, while a weaker dollar and aggressive gold buying by central banks, which purchased over 415 tons of gold in the first half of this year, added additional momentum. Another key factor is that current gold production from mines is struggling to meet soaring global demand, deepening the upward pressure on prices.

Gold on the rise… Should you buy?

Institutions such as Goldman Sachs expect gold to continue its upward trajectory, potentially reaching $4,900 by 2026. In this context, financial markets expert Nadim Al-Sabea told The Beiruter that “gold may experience a slight corrective phase, but our outlook for the metal remains positive in the long term.”

He advised investors to buy gold strategically and consistently, following the Dollar Cost Averaging (DCA) approach rather than making random, impulsive purchases, a strategy that, he explained, helps maximize profits while minimizing potential losses.

What about silver? Al-Sabea noted that “silver has also recorded strong performance, making it an attractive investment particularly because it’s used in advanced industries and smart technologies, which could drive prices higher.” He recommended a diversified portfolio, allocating “30% to gold, 15% to silver, and the rest split among cash, stocks, bonds, and digital currencies.

A surge in Demand in lebanon: The ‘gold queue’ phenomenon

Lebanon’s gold market reacted swiftly to the global price rally. Motivated by fears over the dollar, loss of trust in banks, and the desire to protect savings, many Lebanese are turning to gold both as a safe store of value and a profitable investment amid talk of continued price increases. Elie Tarabay, owner of a jewellery and gold shop in Adonis, Keserwan, told The Beiruter that “the soaring gold price has triggered an unprecedented rush on gold shops across Lebanon. Sales of gold ounces and coins have more than doubled, creating heavy demand among major dealers and importers.”

We’re literally standing in line daily trying to secure enough quantities for our customers. Even silver demand has surged noticeably, with some clients waiting days for their orders due to limited supply.

Interestingly, Tarabay said the rally has boosted buying rather than selling. “People are not selling their gold, they’re buying more,” he explained. “We’ve witnessed increasing interest from international buyers, and we’re now exporting our crafted jewellery and gemstones abroad, a reflection of the strong reputation Lebanese gold traders hold and the exceptional creativity of local designs.”

Warnings of fraud!

Lebanon’s internal security forces recently apprehended a criminal group selling fake gold coins at unusually low prices, a troubling sign as gold demand rises with soaring prices. Tarabay warned buyers “to avoid online pages that don’t list a physical store address in Lebanon and offer gold items or coins at cheap prices,” stressing the importance of buying only from trusted dealers to avoid falling victim to fraud.

Gold has long been considered the world’s ultimate safe haven against inflation and currency collapse. Its 100% rise in just two years reflects the global search for true financial security amid seismic economic shifts. In Lebanon, gold has become a parallel currency, a way to preserve savings and find reassurance in a country where citizens go to sleep to one crisis and wake up to another, clinging to the hope of real stability, for today, and for the generations to come.