Jan Nieuwenhuijs, a gold market analyst, claims that Saudi Arabia has been covertly buying gold since 2022, trying to get its hands on physical gold due to its neutral and sanction-proof traits. According to his figures, 160 tonnes have been acquired without disclosure, likely to avoid upsetting the U.S. government for these actions.
Analyst Claims Saudi Arabia Has Covertly Bought 160 Tonnes of Gold Since 2022
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Analyst Alleges Saudi Arabia Has Been Secretly Piling Gold Since 2022
Jan Nieuwenhuijs, a gold market analyst, states that Saudi Arabia, an oil powerhouse nation, has been secretly purchasing gold since 2022. In a recent report, he alleges that the Saudi Central Bank has acquired 160 tonnes of gold due to its neutral and sanctions-free characteristics.
Nieuwenhuijs explains that Saudi Arabia has been likely another driver of the current bull market, with its demand boosting gold prices. To arrive at his conclusion, he explains that rumors about this behavior have been circulating among industry insiders for years.
He compared the numbers of gold purchases reported to the International Monetary Fund (IMF) and the numbers estimated by the World Gold Council. The latter surpassed the former, with reports that this was in part thanks to Saudi Arabia’s gold purchases.
A second hint on this is given by the disparity between imports directed for jewelry and other purposes and the total imports. As there are no gold exchange-traded funds (ETF) in the country, the surplus of the total imports must be directed to the central bank vaults.
Furthermore, Nieuwenhuijs explains that these 160 tonnes of gold were purchased from Switzerland, as he reviewed the disparity between Saudi consumer demand and its net imports and compared this to gold exports from Switzerland to Saudi Arabia.
Nieuwenhuijs assessed that Saudi Arabia might be underreporting these numbers to avoid upsetting one of its main allies, the U.S., as this can be interpreted as an effort to bypass the U.S. dollar. Last week, Bandar Alkhorayef, Saudi Minister of Industry and Mineral Resources, hinted at the possible adoption of the petroyuan, a decision that would also hurt the U.S. dollar’s status as the world’s trade currency.
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