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Ethiopia however stands out in the East African region as a country where gold is traded in street kiosks. West Africa too is home to a bustling trade in gold jewellery.
security concerns. Today most of the jewellery in Kenya comes ready made from Dubai, said Mr B Shah, a local dealer with over 30 years of experience in precious metals and stones. He remembers a time, shortly after independence, when street vendors would manufacture gold chains on Biashara Street, and over 50 jeweller shops lined River Road in downtown Nairobi. Rising insecurity however put an end to the trade and today the sole jeweller shop on River Road is Nagin Pattni.
During the colonial days, gold biscuits were legally traded in Kenya through over the counter purchases at local banks, said Mr Shah. Today, some Kenyans continue to invest in biscuits that are purchased from gold havens like Dubai, but they are not legally traded here as they are elsewhere in the world. In Switzerland, for instance, a square of a gold biscuit (akin to a Cadburys bar) is broken o and can be given out in lieu of a payment. Ethiopia however stands out in the East African region as a country where gold is traded in street kiosks. West Africa too is home to a bustling trade in gold jewellery. Despite the recent uctuations in the international price of gold, the New York Times reports that anyone who bought gold in 1999 and held onto it has still performed better than the average stock market investor because it is not subject to the same market driven uctuations. And even after the recent decline, the price of gold is still up 515%. Unlike other nancial assets, however, gold does not produce a stream of income either as rent or dividends.