Gold Rate in Saudi Arabia: All You Need to Know

Gold Rate in Saudi Arabia: All You Need to Know


The Gold Price in Saudi Arabia for Today

Today, the price of 1 gram of 24K gold in the kingdom of Saudi Arabia is SAR 145.91. This means that the gold rate in Saudi Arabia of 10 grams of gold, today, is SAR 1,459.1. On the other hand, the gold rate in Saudi Arabia per tola today is SAR 1,701.82.

The History of the Gold Rate in Saudi Arabia

In Saudi Arabia, and is most other parts of the world, the price of gold was at a record low in the late 1960s. After the 60s, the price of gold continued to increase until it reached the point at which it is now, and, according to specialists who have researched into the matter, the chances of the price of gold going back to that record low value are extremely low. The spike in the price of gold was first seen in the 1970s, with an extremely significant increase in the gold price in Saudi Arabia being seen in 1979-1980. The price of gold became exceedingly high during this period, but after the year 1980, the price started to subside and came back to being as close to the record low value of the 60s as it possibly could.

After the year 1980, the gold price fluctuated a lot. The price of gold all over the world kept constantly increasing and decreasing, but it was not until the beginning of the 21st century that the gold price started to rise substantially. The start of the 21st century saw a spike in the gold prices all over the world that was not only unprecedented but also a tad unexpected.

The most substantial increase in the gold price in Saudi Arabia began in the year 2005, and this increase did not start to calm down until the year 2011. During the year 2011, the price of gold worldwide increased to a record setting value, $1,800 per ounce. This was also the case with the kingdom of Saudi Arabia as the price of gold increased to a record SAR 6,750 per ounce.

When 2011 came to an end and the year 2012 dawned upon the world, the price of gold came down considerably, thanks to the many efforts that the world made to drive the price of gold, which had become quite exorbitant, down. Even though the price at which gold is currently being sold is considered to be quite high and is not as low as most people would want it to be, it is substantially lower than the record setting price of the 2011-2012 period.

Right now, in the year 2015, the gold price in Saudi Arabia is lower than it has ever been after the gold price spike of 2011-2012. However, the price of gold all over the world, including the kingdom of Saudi Arabia, is constantly fluctuating, which means that there is no telling how much it will increase or decrease over the course of the next few years, or even the next few months.

Factors that Affect the Rate of Gold in Saudi Arabia

Everyone knows that the price of gold in the world, and in the kingdom of Saudi Arabia, does not stay the same. The price of gold constantly increases and decreases and many people wonder what exactly causes an increase or a decrease in the price of gold. Well, the following are the four factors that play a hand in molding and shaping the gold price in Saudi Arabia:

Demand

The first, and quite possibly the most significant, factor that has a hand in shaping the price of gold in the kingdom of Saudi Arabia is its demand. Both the industrial demand and the personal demand of gold in Saudi Arabia affect the cost of the precious metal. Gold is a material that is used not only for personal purposes – making jewelry and possessing as a solid monetary asset on which a person can earn profit over time – but also for industrial purposes – catalyzing a number of different industrial chemical reactions and taking part in various industrial chemical reactions as a raw material – and the precious metal’s demand for both the purposes keeps fluctuating. This fluctuation in the demand, in turn, drives the price of gold up or down.

National emergencies

A factor that has an extremely significant hand in deciding the price of gold in Saudi Arabia at any given time is national emergencies. National emergencies and situations such as war, economic crises and imbecile or incompetent leaders can all have an effect on the price of gold in a country. If the people of Saudi Arabia were to ever face any of these national crises, the gold price in Saudi Arabia would be affected significantly. In most cases, this factor reduces the price of gold in a country rather than increasing it.

Central banks and mining companies

The third factor which can play a role in shaping the price of gold in any country consists of central banks and mining companies. Both of these entities can drive the price of gold in a country up or down as they have massive reserves and caches of the previous metal. Central banks in Saudi Arabia can buy or sell and extremely large amount of gold to either increase or decrease its price. Alternatively, mining companies can reduce the amount of gold they produce and send into the Saudi Arabian gold market in order to drive the price of gold however they wish.

Speculation and Investing

The last factor that can also have a substantial effect on the gold price in Saudi Arabia is speculation and investing. The gold price in the kingdom of Saudi Arabia will be affected quite seriously if either a large investment is made into its gold industry or the industry loses a considerably large portion of its funding and financial resources. Similarly, the way that speculators choose futures and options for increases or decreases in the price of gold in the stock market is also known to play a role in increasing or decreasing the price of gold in the country.

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