GOLD NEWS

Saudi Arabia is secretly buying gold

Sun Sep 22 2024

The global gold market is witnessing a silent storm. While prices soar to historic highs, a clandestine buying spree by central banks is fueling the flames. This article delves into the case of Saudi Arabia, a nation quietly amassing gold reserves, potentially signaling a shift in the global financial landscape.

The Whispers of Gold: Saudi Arabia's Hidden Purchases

Analyst Jan Nieuwenhuijs from MoneyMetals exposes a startling truth: Saudi Arabia might be secretly accumulating gold. He estimates a staggering 160 tonnes purchased since 2022 in Switzerland, a move contributing to the current gold rush. This strategy appears to contradict the nation's historical role in establishing the petrodollar system. Could the Saudis be orchestrating a pivot away from American dominance?

Beyond the Numbers: Decoding the Saudi Strategy

While official Saudi gold reserves remain unchanged, the story lies beneath the surface. Nieuwenhuijs compares World Gold Council estimates to IMF reports, revealing a surge in "undeclared" purchases – a trend likely driven by China and, to a lesser extent, Saudi Arabia. This clandestine buying suggests a strategic move away from the dollar, potentially mirroring the actions of Russia and China (who have been major gold accumulators for years).

Source: https://www.jpost.com