Gold Crisis: Saudi Arabia

Inquiring minds are looking toward Saudi Arabia where Gold is in short supply:

85% of Saudi goldsmiths terminated their activities and fired their employees because of the crisis that hit the Saudi processed gold sector. The report was made by Abdellatif Alnimer, president of the gold and jewellery commission of the Chamber of Commerce of the eastern area of the Saudi kingdom, who was quoted by daily newspaper Al Quds Al Arabi.

Many gold processing facilities shut down their production lines because of the decline in sales. Alnimer warned gold trades about the negative consequences of monetising their investments to deal with operational expenses and wages. He stated that “Choosing to transform owned gold into liquidity means opening, without rules, the doors to foreign investors on one side and, on the other, allowing gold to ’emigrate’ towards the Countries of the investors”.

In 2005 the price of a kilo of pure gold was equal to 48,000 Saudi riyals (slightly more than 9,000 euros), while now the price has increased to 169,000 riyals.

Maybe they can trade with DeBeers straight up?


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