Have the Saudis Actually Bought $3.5 Billion Worth of Gold Over the Last Two Weeks?
November 14th, 2008I don’t really know what “gold” means here. Does it mean that the Saudis have purchased gold futures contracts? That would be hilarious if they are planning on taking physical delivery of metal. Good luck with that.
As of right now, 13 billion Saudi riyals is the equivalent of US$3.471 billion.
Via: Gulf News:
There has been an unprecedented demand for gold in the Saudi market recently, with over 13 billion Saudi riyals (Dh12.75 billion) being spent on the yellow metal during the last two weeks.
Demand is expected to rise still higher as more investors turn to gold as a safe haven in the midst of the global financial crisis, according to market sources.
Sami Al Mohna, an expert on the gold market, said the trend had resulted in a substantial rise in the gold reserves of Saudi investors.
Since soaring to an all-time high of $1,033.39 per ounce in March this year, gold has plummeted 30 per cent.
Gold for December delivery on Monday rose $8.60 to settle at $726.80, roughly the same level at which it traded a year ago.
“Many Saudi investors see this as the right time for making investments in gold as its price is the most reasonable one at present,” said Al Mohna.
