china confidential
Monday, November 17, 2008
Rushing to Gold, Saudis Take Ruble Report Seriously
EDITOR'S NOTE: THIS BLOG HAS BEEN EXPERIENCING INEXPLICABLE DELAYS IN SERVICE ALL DAY. TRAFFIC HAS BEEN UNUSUALLY HEAVY, ESPECIALLY TO THE GOLD-RELATED ARTICLES.
China Confidential has learned that Saudi Arabia believes that there is a 50/50 chance that Russia will introduce either a gold-backed ruble or a gold-backed special drawing right.
The kingdom's estimated $3.5 billion gold purchase in November was partly influenced by this belief.
Saudi investors expect gold to rise as the world's central banks print money to stimulate economic activity; a dramatic move toward a gold-backed currency by any government would spark a global gold rush.
Saudi financial advisers are also screening undervalued gold stocks.
Tuesday, 18 November 2008
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