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Saudi Central Bank Caught Secretly Buying 160 Tonnes of Gold in Switzerland
[MoneyMetals] The Saudis have joined other Asian countries in ditching their long-term sensitivity to the gold price. Evidence suggests the Saudi central bank has been covertly buying 160 tonnes of gold in Switzerland since early 2022, contributing to the current gold bull market.Although the Saudis played a key role in the birth of the global dollar standard in the early 1970s, this time around they might even become a lynchpin for its dissolution. INTRODUCTION Until recently, Saudi Arabia’s gold demand would decline when the gold price went up and strengthen when the price went south. This dampened volatility in the gold market, which for many decades was ruled by the West. Ever since the West immobilized Russia’s dollar assets in February 2022, those with diplomatic disagreements with the West are increasingly exchanging their dollars for physical gold. Saudi Arabia is the latest country—after China and Thailand—of which I have found cross-border trade statistics showing it has shifted from being price sensitive to a price driver. Related: Saudi central bank: 2016-08-03 Geopolitical Futures: Troubling Signs out of Germany and Saudi Arabia Saudi central bank: 2014-03-14 Saudi Arabia loaned Pakistan $1.5bn to shore up economy Saudi central bank: 2007-09-20 Fear of dollar collapse as Saudis refuse interest rate peg Posted by: Skidmark 2024-09-14 |
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