Jan Nieuwenhuijs, a gold market analyst, claims that Saudi Arabia has been secretly buying gold since 2022, trying to get physical gold due to its neutrality and anti-sanctions stance. According to his figures, 160 tonnes were purchased without disclosure, likely to avoid offending the US government with these actions.
Analyst Accuses Saudi Arabia of Secretly Hoarding Gold Since 2022
Jan Nieuwenhuijs, a gold market analyst, claims that Saudi Arabia, an oil powerhouse, has been secretly buying gold since 2022. In a recent report, he alleged that the Saudi Central Bank has bought 160 tons of gold due to its neutral and non-sanctioned nature.
Nieuwenhuijs explained that Saudi Arabia could be another driver of the current bull market, with demand from the country driving up gold prices. In arriving at his conclusion, he explained that rumors of this behavior have been circulating among industry insiders for years.
He compared the gold purchases reported to the International Monetary Fund (IMF) and estimates from the World Gold Council. The latter figure surpassed the former, with the report attributing this in part to Saudi Arabia's gold purchases.
A second hint at this is given by the gap between imports destined for jewelry and other purposes and total imports. Since there is no domestic gold exchange-traded fund (ETF), the surplus of total imports must be transferred to the central bank's coffers.
Furthermore, Nieuwenhuijs explained that these 160 tonnes of gold were purchased from Switzerland when he looked at the gap between Saudi consumption demand and the country's net gold imports, and compared it to the amount of gold exported from Switzerland to Saudi Arabia.
Nieuwenhuijs believes that Saudi Arabia may be underreporting these figures to avoid offending one of its main allies, the United States, as this could be interpreted as an attempt to bypass the US dollar. Last week, Bandar Alkhorayef, Saudi Arabiaâs Minister of Industry and Mineral Resources, hinted at the possibility of adopting the petroyuan, a move that would also damage the US dollarâs ââposition as the worldâs trading currency.
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