What is Oud and why is it more expensive than gold?

Why Oud is Expensive

The Oud (or “Oudh”) is one of the most expensive raw ingredients in the market because of its rarity, value, and elite fragrance. This highly coveted essential oil has become the ultimate favorite of perfumers, collectors, and enthusiasts all over the world for its out-of-this-world scent. They are paying hundreds and thousands of dollars for a bottle of an Oud, and here’s why:

The Rare Resin

How Oud is Made

Oud oil is extracted from a fungus-infected wild tropical aquilaria tree or “agar tree”, primarily found in Southeast Asia. However, only 2% or one out of ten trees in the forest produce resin, or the Oud, as only a few are infected by the mold called Phialophora parasitica. Expert perfumers also prefer older, yet rarer, agar trees as they extract the richest quality of Oud. Oud oils are extracted by steam-distilling the Agarwood or melting the resin. This precious oil is then incorporated into fragrances and other products, while the wood is commonly used as incense.

Agarwood’s popularity can be traced back to ancient times in the Middle East, where almost everyone can recognise its unique pungent smell. For centuries, Agarwood has been widely used as incense through burning or using as an ingredient in Middle East and Asian countries. This famous wood is always present in religious ceremonies, tea ceremonies, and other spiritual and cultural events. In Feng Shui, the incense is believed to help in regulating the flow of good and bad energy in a particular space. While in Muslim practices, Agarwood, which was adored by the prophet Muhammad, was used in Islam rituals and aromatics. Eventually, Agarwood’s fame reached the West, where royal personalities and big brands incorporated Oud into their products.

For years, Oud has proved itself as the symbol of luxury and prestige in the perfume industry. In 1975, the Krigler’s Oud of Highness 75 was created especially for King Hussein of Jordan. While in Europe, Louis The XIV, the Royalty of France, loved the musky scent of Oud so much that he had his clothes washed with it. In modern perfumery, Oud oil is mainly used as a base note of perfumes by luxurious brands because of its heavy, long-lasting aroma that blends well with other fragrances. 

The Liquid Gold

Oud is considered the “Liquid Gold” as it is valued 1.5 times higher than gold due to its extreme rarity and scarcity. In the coming years, Oud market is expected to soar because of the high demand especially in the perfume industry. Known as the “five thousand dollar per pound scent”, an Oud perfume can cost as much as $30,000. Some of the top bespoke perfumes include Giorgio Armani’s Oud Royale and Tom Ford’s Oud Wood which cost around $350 for a 100ml-bottle. Undoubtedly, the Oud is worth its weight in gold and, apparently, more. 

The Oud Scent

Why is Oud so Popular ?

But why pay hundreds and thousands of dollars for a perfume? Simply because the Oud scent is like no other. The balance of sweet, slightly floral smell and woody, earthy, leathery notes creates the Oud’s iconic oriental scent. Its sensual, warm, almost animalistic aura envelopes any space and instantly creates a sense of luxury and comfort. Its complex and eccentric aroma is both loved and hated by people, as it can put the senses off at first. But there’s no denying that it’s one of the best gifts of nature and one of the greatest innovations man has ever made. Whether incorporated in perfumes or used for aromatherapy, the Oud scent can take you to a one-of-a-kind olfactory experience you’ve never had with others.

So what makes Oud expensive?

With every hundred dollars you spend on a bottle of Oud, you’re getting a premium product made of an extremely rare, highly valuable ingredient sourced from the deep forests in Southeast Asia, expertly formulated to produce a distinct scent that symbolises prominence and royalty. Each drop of Oud represents the rigorous process from sourcing to extracting to crafting.

Given its rare nature and reputation in the industry, Oud oils, perfumes, incense, and other Oud products have become one of the most expensive commodities in the worldwide market. Others might hate it for its dominating scent and excessive pricing, but anyone with a taste for the extraordinaire would give everything to own a bottle of it. It’s made for everyone, but not for everyone’s taste. Oud’s eccentric fragrance is made for the few with fervor for extravagance and zeal for class and grandeur. But it is also catered for those with resources to buy a bottle or two. If you’re one of those, you should definitely get an Oud.