In Gaza, gold becomes a financial refuge as war erodes people's life savings

Palestinian women in Gaza are now buying gold for different reasons, with some turning to it not solely for adornment or celebrations, but as a form of portable savings that can be easily concealed, carried and sold for cash when needed.

For Rahaf Abu Shaaban, 34, the change is personal. "Now I look for lightweight rings and necklaces, comparing their prices with her limited savings and choosing pieces she can afford rather than elaborate designs," she told The New Arab.

"I no longer buy gold for adornment […] When I have a small amount of money, I prefer to buy a piece of gold, even if it is simple. I feel like I am holding on to something of value that I can sell if I need money," she said.

Before the war, gold was not central to her approach to saving. Like many families, she kept cash for emergencies and used it when necessary.

But as Gaza's economy has been battered, access to cash has become increasingly difficult and costly, prompting her to rethink how she protects whatever money she manages to put aside.

"We don't know what tomorrow holds, and we don't know when we will need money," she said. "So, I prefer to have something I can rely on in times of need."

Gold over cash

Her experience is increasingly echoing inside gold shops that remain open across Gaza.

Customers still ask about designs, but their questions have shifted. How much does a gram cost? How heavy is the piece? How much could it be resold for? Can it be sold quickly?

For customers with shrinking purchasing power, the answer is increasingly found in smaller pieces.

Rana al-Hadad, a Gaza-based mother of three, told TNA that gold was once something her family associated mainly with weddings and other important occasions, but the war has given it a different role.

"If I have some money I don't need to spend immediately, I will try to buy a small piece," she told TNA.

"I'm not looking for the appearance as much as I'm thinking about its value. I might have to sell it after a month or a year, but the important thing is to have something that can be converted into money," she said

The war changed what it means to save for al-Hadad.

"Before, we could save money and plan for the future, but now the priority is to preserve whatever we own," she said. "For me, gold is the kind of savings that can be carried and kept."

But gold remains out of reach for many families. Prices have climbed while incomes have fallen, meaning that even a single gram can represent a substantial expense.

For others, whatever gold they already own is no longer a reserve for the future but an emergency resource, sold to pay for food, medical treatment or shelter.

The result is a market caught between two opposing pressures: people trying to turn whatever savings they have into something they believe will retain value, and families forced to liquidate their possessions simply to survive.

Market cut off from supply

The shift in how consumers view gold has unfolded alongside a deeper crisis in Gaza's gold industry.

The Israeli genocidal war and the closure of crossings disrupted supply chains that merchants had relied on before October 2023.

Mohammed Haboub, head of the Gaza Gold Merchants Syndicate, told TNA the gold sector was "directly affected by the closure of the crossings and the halt in the import of gold and related materials for its trade and manufacturing."

"We used to bring gold from the West Bank, Egypt and Dubai […] The crossings were open, and trade was normal. Now, importing gold and raw materials has become extremely difficult," he said.

"The disruption has dramatically changed local prices. "Gold in Gaza was about 10% cheaper than the global price before the war. Now, it's about 25 per cent more expensive," he said, citing shrinking supply, rising demand, and import difficulties. The damage extends beyond shops.

The number of factories and workshops operating in Gaza's gold sector has fallen to 21 from 41 before the war, according to Haboub.

Physical destruction, the collapse of economic activity and shortages of raw materials have all undermined the industry's ability to operate.

"Before the war, Gaza's factories and workshops stamped around 300 kilograms of gold each month, while local production met roughly 70 per cent of the market's needs," he said.

Today, workshops struggle to obtain the materials needed to produce jewellery, while rising production costs are pushing prices higher and narrowing the choices available to customers.

For merchants, however, the market has not disappeared. "There has been a noticeable increase in purchasing activity despite the wider economic crisis," Ragheb Ayyad, a Gaza-based gold trader, told TNA.

A gram of gold is selling for around 115 Jordanian dinars, according to Ayyad. He said purchases by citizens currently exceed sales.

He attributes the trend to a desire among some Palestinians in Gaza to convert their savings into a tangible asset, as accessing cash has become increasingly difficult and economic uncertainty has deepened.