As a result of the war in Ukraine, the value of the Egyptian currency is falling. Egypt was one of the biggest buyers of Ukrainian grain and sunflower oil. The foreign exchange necessary for importing less affordable food is now devaluing the local currency and households are looking for ways to defend against this. The demand for gold and its value in the Egyptian pound is growing at a rocket speed.

Similarly, gold is also rising in Nigeria. People there have only few weeks left for exchanging banknotes. However, people are afraid of taking their money to the bank, and also of not being able to exchange it in time. That's why they prefer to put it in assets giving them more security. These are typically gold or grain. This may cause further growth of inflation in the country. India has also resorted to banknote exchange in the past with the intention of limiting the grey economy, where similar moves have led to more chaos rather than the establishment of order and stability. Nigerians are now deciding in what form they will continue to hold their movable property, and a large part of their savings finds safety in gold.

Events in Africa are increasing the number of people interested in gold, and the already high demand for physical gold will increase even more.