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| Arabia |
| Saudis Hoard Twice as Much Gold as Thought |
| 2010-06-21 |
| Saudi Arabia, the world's fourth-largest holder of foreign exchange reserves, is sitting on more than twice as much gold as previously thought, according to new estimates that point to the revival of bullion as part of emerging economies' official reserves. The changes in Riyadh's reserves were revealed by the World Gold Council, the industry-backed body which regularly tracks official bullion holdings. According to the WGC, the Saudi Arabian Monetary Agency, the central bank, has gold reserves of 322.9 tones, more than double the 143 tones it had previously reported. The central bank said in a footnote of its latest quarterly report that “gold data have been modified from first quarter 2008 as a result of the adjustment of the Sama's gold accounts'. Sama did not respond on Sunday to calls seeking further comment. Analysts said the rise in official gold holdings probably represented an accounting shift rather than fresh purchases. One possibility is that a large fraction of the country's gold was not considered until now part of the official reserves. But without an official explanation, analysts were keeping options open. At current prices, the extra gold in Saudi Arabia's official reserves amounts to $7 billion. The revelation could fuel gold's rally as it is a further sign that central banks are keen on gold, after two decades of selling their bullion. |
| Posted by:tipper |
| #2 It would really be noteworthy if the Saudis horded more thought than gold.... |
| Posted by: Lampedusa Omese6523 2010-06-21 23:24 |
| #1 The bullion sellers think it's a great time to sell. Who's the greater fool? Time will tell... |
| Posted by: M. Murcek 2010-06-21 20:35 |