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Gold refineries to be established in Saudi Arabia soon: Official
WHY WOULD YOU REFINE GOLD YOU ALREADY HAVE? UNLESS...
Karim Al Enezi, Head of the Precious Metals & Gemtones National Committee at the Saudi Council of Chambers
The gold extracted from Saudi mines is refined in Switzerland, which implies a very high cost for the mines, amounting to nearly 35% of their profits, CNBC Arabia TV reported, citing Karim Al Enezi, Head of the Precious Metals & Gemtones National Committee at the Saudi Council of Chambers. He added that the Kingdom does not have any gold refineries currently, noting that the cost of establishing refineries is very high.
The committee has recently communicated with the Ministry of Industry and Mineral Resources to issue a decision on refining gold in the Kingdom, Al Enezi said. He added that the Kingdom has the capacity and readiness for this, expecting gold to be refined in the Kingdom soon.
Why is this important? Who would need a refinery in country that does not mine much gold? Why the need to re-refine Gold you already have? One possibility Because when you use Gold for international trade, you must make sure the specs are up to snuff. And China has different specs than existing LBMA bars refined in Switzerland.
- Saudis will be taking delivery of more gold
- Saudis and China are preparing to do Gold related international transactions, likely in Chinese specs
They have been practicing this since 2017:
Deals are being done, Russia/China oil for gold using Blockchain over the past several months. A few months ago $3b trades that way. And the info I got was that the gold paid to Russia never left the Chinese vault
Do not sell your physical Gold if you can avoid it.