Financial analyst Khaled Al-Zantouti wrote:
While reviewing global stock, bond, and commodity markets this morning, I noticed the significant rise in gold prices over recent years—about 150%—while some global stock markets rose at lower rates, though exceptions exist (for example, the S&P 500 rose roughly 170% over the past ten years). Without diving into detailed numerical analysis, these figures show the importance of gold as a safe haven for investors, especially during times of political, military, and economic instability. The futures market and recent price developments further confirm this.
This made me think about the gold hoarded in Libyan homes, its current value, and ways to benefit from it. For reference, the average price of gold per gram in Libya was around 10 LYD in 1990 and about 15 LYD in 2000. Today, the average price is around 500 LYD per gram—50 times higher than in 1990 and 35 times higher than in 2000. This far exceeds the depreciation of the dinar against the dollar. Considering the cost of traditional gold ornaments for weddings, which previously weighed at least 200 grams (worth about 2,000 LYD then), their current value is around 100,000 LYD—a massive capital gain.
I realized that most Libyan households hold some gold—ranging from tens or hundreds of grams to kilograms—which represents an untapped economic potential, often used only for decoration or display at weddings and special occasions. The question is: why not use it economically?
I came up with a simple idea—perhaps imperfect: what if these stored quantities of gold were used as collateral for limited bank lending? Banks could lend to customers against gold held in their homes, allowing clients to fund small productive projects or housing loans.
I therefore call on the Central Bank of Libya and all commercial banks to explore a model for lending for housing and small projects using gold stored in homes as collateral, with zero risk appetite and limited lending costs. This could be a step toward secured, limited credit—especially given current conditions and the inability to fully implement the real estate registry.
