Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

[jtabeb]

http://jessescrossroadscafe.blogspot...on-to-buy.html

Gulf News
Gold demand rises in Saudi Arabia
By Mariam Al Hakeem, Correspondent
November 12, 2008, 23:42

Riyadh: There has been an unprecedented demand for gold in the Saudi market recently, with over 13 billion Saudi riyals (equivalent to US $3,466,667,946) (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....

[Down Under]

Re: Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

Gold demand rises in Saudi Arabia
By Mariam Al Hakeem, Correspondent
November 12, 2008, 23:42

Riyadh: There has been an unprecedented demand for gold in the Saudi market recently, with over 13 billion Saudi riyals (equivalent to US $3,466,667,946) (Dh12.75 billion) being spent on the yellow metal during the last two weeks.

This is very interesting; so, if approx. USD 3.5 billion has been spent on gold in the past two weeks in Saudi Arabia, then this seems to be corroborating evidence that there is a total disconnect between physical and paper (Comex) gold.

I think Sinclair reckoned that the Comex has approx. USD 4.5 billion physical in it's warehouse. Maybe the Saudis should start buying Comex futures and take delivery. That would definitely make for interesting times, as far as gold is concerned.

Very hard to see how the price of gold cannot rise, assuming it is true regarding the Saudis buying gold.

[jtabeb]

Re: Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

This is very interesting; so, if approx. USD 3.5 billion has been spent on gold in the past two weeks in Saudi Arabia, then this seems to be corroborating evidence that there is a total disconnect between physical and paper (Comex) gold.

I think Sinclair reckoned that the Comex has approx. USD 4.5 billion physical in it's warehouse. Maybe the Saudis should start buying Comex futures and take delivery. That would definitely make for interesting times, as far as gold is concerned.

Very hard to see how the price of gold cannot rise, assuming it is true regarding the Saudis buying gold.

Full disclosure: I think the article is talking about Saudi Retail investors, not the Saudi Gov.

[Down Under]

Re: Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

Full disclosure: I think the article is talking about Saudi Retail investors, not the Saudi Gov.

Yes, I assumed it was Saudi retail investors. But, even so, if some group, be it Saudis or otherwise, decide to break the concentration of bullion banks who appear to have significant short positions on the Comex, according to Norcini at jsmineset, then it would sure put the cat amongst the pigeons, as far as the price of gold at the Comex is concerned.

[jtabeb]

Re: Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

then it would sure put the cat amongst the pigeons, as far as the price of gold at the Comex is concerned.

Amen! Go GET 'EM BOYS, FEEDING TIME!

[Yaowarat]

Re: Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

Here's a blast from the past....


Where is that gold dinar?
by Jude Wanniski

When Malaysian prime minister Mahathir Muhamad last November retired from his 22 years in power at age 77, I had hoped he would devote his energies to a monetary reform of the Islamic world built around a gold dinar.

But after a few speeches and press releases on this subject, he has disappeared, practically dropping out of sight.

With the dollar price of gold now soaring and the US dollar sinking against the euro, the whole world could now make good use of Mahathir's idea, but what happened to it?

...
http://www.polyconomics.com/ssu/ssu-041204.htm

[pksubs]

Re: Saudi Arabia Spends $3.5 Billion to Buy Gold in the Past Two Weeks

Is there a possibility that gold purchases like this one by the Saudis is related to the likelihood of a comex gold default ? It's been mentioned in itulip and other forums that physical and comex gold futures prices should decouple with physical popping to the upside. The saudi purchase would be rather timely in that case!

I'm also curious as to the effect on GLD(I own some) should there be a comex default, would it follow physical price upward?