Saudis Are Seeing the Value of Gold Go Up and Up
Saudis are piling their savings into gold as the value of their foreign currency holdings decline.
The number of customers buying gold in Saudi Arabia has jumped to three times the usual daily volumes, a regional analyst said.
The rising gold price trade is one sign that the volatile economy and rising prices of commodities, like oil, have scared investors away from currencies and bonds that pay little or no interest.
Saudis are particularly attracted to the New York-listed gold exchange-traded fund, SPDR Gold Trust, said Farouk Mumin, managing director for regional sales at one of the world’s largest bullion dealers, Scotomata.
They are betting that gold, which is seen as a safe haven in the current global financial turmoil, will continue to go up in price.
And once they buy gold, they’re eager to keep holding it, because of its double-digit annual returns, Mumin said.
For centuries, Saudis have valued gold as a representation of their wealth. Now, they’re pouring money into bullion, driving up the price of gold and in turn making it more valuable for them.
Saudi buyers accounted for 7% of daily gold trade at an average of $35.9 million daily in January and $42.6 million in February, according to data from Gold Core Ltd., the global gold marketplace for investors.
That compares with less than 2% of daily trade on average in the past year.
18k gold rates in Saudi Arabia: The people living in the desert country believe that the gold they wear is of high purity and status.
The people living in the desert country believe that the gold they wear is of high purity and status.
Gold is popularly known for its monetary value, fashion, and beauty, and for that matter, these are always associated with each other.
From the ornate gold crowns to the glittery jewelry, gold is a favorite among celebrities, movie stars, royalty, and beyond. For a lot of people, the gold sparkles in their closet.
While there are some people who feel the heat of the searing sun while putting on their gold jewelry, the men and women who get carried away by this metal truly.
18k gold price in Saudi Arabia is tenfold more than $6,000. Saudi Arabia’s decision to cancel their economic blockade on Qatar is a surprise, to say the least.
The American press is portraying the decision as a temporary stepping back and restarting of peace talks, a peace that in this instance meant an increased American influence in the Middle East.
Saudi Arabia’s powerful crown prince, Muhammad Bin Salman, who launched his war against Yemen and Qatar on the Western front, led his country to its first war in years.
Saudi Arabia has blocked and thwarted almost all peaceful efforts that Qatar has made in recent years.
For this reason, Qatar’s previous emir was forced to bring Saudi Arabia in by initiating a meeting in Saudi Arabia where the negotiation of a deal was to take place.
Saudi Arabia is the world’s largest silver consumer. Saudi Arabia’s thirst for silver is so great that in 2007 it accounted for 95% of world silver consumption.
In terms of silver price, Saudi Arabia is second only to China, but its annual silver demand is over 50 times higher. It even has the largest silver mines in the world.
While its silver reserves are comparatively small by comparison, it produces more silver than any other country in the world and exports it in bulk.