Lebanon is facing a heated debate over how to manage its vast gold reserves as global prices reach historic highs, with the country holding 286.8 tons of the precious metal, the second-largest stockpile in the Arab world after Saudi Arabia.

Financial and economic experts are divided over whether Lebanon should sell a portion of its reserves, currently valued at roughly $31.5 billion, to ease the country’s financial pressures, or preserve the gold as a strategic asset amid expectations of further price gains. 

“Gold is the strategic shield for Lebanon’s sovereign financial stability,” Dr. Pascal Daher, a lawyer specializing in judicial oversight of central banks, told Annahar. “Selling or leasing it in complex contracts risks stripping Lebanon of one of its last sources of international confidence and could lead to long-term losses.”

Gold prices have surged nearly a third in the past year, with an additional half-billion-dollar increase recorded in the first half of August alone. Some government officials have floated the idea of liquidating a portion to repay frozen bank deposits and revive the economy.

On the other side, some experts argue strongly against any sale, citing a deep mistrust in state institutions and insisting that liquidity could instead be generated by cracking down on rampant corruption, managing state assets transparently, and pursuing effective public–private partnerships.

“There are also dangers in liquidating at the wrong time,” Daher said. “If Lebanon sells or leases during a period of instability or at suboptimal prices, the country risks a long-term strategic loss in exchange for short-term, limited gains.”

Daher warned that such options carry multiple risks. Selling or pledging gold could strip Lebanon of one of its last sources of international confidence, potentially leading to further credit downgrades. Gold leasing, he explained, may generate immediate cash but would create future obligations and transform the reserves from a sovereign asset into a risky financial instrument.

Beyond its market value, Lebanon’s gold could serve as a diplomatic and negotiating tool, particularly in discussions with the International Monetary Fund.

“It provides sovereign guarantees that can strengthen Lebanon’s negotiating position with international donors, similar to how Greece used its reserves during the eurozone crisis,” Daher added.

Given these stakes, Daher urged Lebanon to safeguard its gold as a strategic reserve rather than a quick spending tool, ensure institutional transparency through regular reporting, avoid complex leasing contracts, and diversify funding sources through structural reforms and anti-corruption measures.

“Most importantly, Lebanon should use the rise in the market value of its gold as leverage in negotiations with the IMF and international donors, instead of rushing into a path that could strip it of one of its last sovereign assets," he concluded.