|

Plundering the Arabian Peninsula – Possible Gold Shortages Coming?

After the tales of silver shortages over the past few weeks – the Canadian Mint reporting that “silver is becoming very difficult to source” – and the ongoing silver backwardation, is it now the turn of gold supply to become tight?

News out of Egypt over the weekend is that it has just banned all gold exports for at least the next four months. The purpose of the ban is to try an attempt members from the former regime stealing any of the people’s gold on the way out of the door.

Remember, that when Tunisia fell Ben Ali’s wife was sent to their central bank and picked up 1.5 tonnes of the people’s gold (about 1/3 of all the nations gold) and flew it out of the country on on a private jet – note they didn’t waste any time on picking up fiat currency, they wanted things that were real and tangible, they wanted gold.

Clearly the concern in Egypt it very real with a freeze of all the former dictator’s assets from within Egypt. This is an attempt by the Egyptian people to claim its wealth back. They also slapped a travel ban on Mubarak for good measure.

 

According to Hossam Isssa, head of the “Judicial committee to recover wealth” in the past few days Mubarak has been siphoning off vast amounts of his wealth to other Arab nations (possibly Saudi Arabia and Israel). He also went on to say that Hussein Salem, a business man with very close ties to Mubarak  “fled from Cairo airport at the start of the revolution before a travel ban could be put in place with a huge amount of precious metals, gold and also cash”.

Although the ban on gold exports is not designed to affect mining exports, the market is a little less sure this will be the case. Centamin, a gold miner in Egypt listed on the FTSE 250 fell today in this mornings trading on concerns the export ban will inevitably have  ramifications for the gold miners in Egypt.

Are we about to see gold restriction become common place thought the Arabian Peninsula and North Africa? With protests and violent reactions by the regimes in power stretching from Morocco in the East all the way to Yemen in the south west it is certainly a possibility.

According to wikipedia and US Geological Survey the gold production of the countries with significant production that are revolting or planning to (Algeria, Iran, Morocco, Saudi Arabia  Sudan and Oman) adds up to a little over 1.3 tonnes – in the grand scheme of world annual production of 1500 tonnes a seemingly small amount. But in world where physical demand is growing and supply is tight, even small amounts of production falls could have large affects on price.

However, more important than the possible negative affect on the gold production are the asset freezes we are now beginning to see with Egypt and Libya leading the charge. It would seem unlikely that we’ve seen the only asset freezes in this cycle of revolutions as the people try to claw back their capital. These freezes could stop physical and paper gold finding their way onto the open market.

It’s worth bearing in mind that Saudi Arab, as we mentioned earlier where vast amounts of precious metals might have been flown just as the revolution in Egypt was kicking off, is planning the start if its revolution on March 20th. If Saudi ‘does an egypt’ and we see asset freezes there, then all bets will be off on just how disruptive this might be on the price of gold.

 

Link to this article: : http://www.goldmadesimplenews.com/gold/plundering-the-arabian-peninsula-possible-gold-shortages-coming-3064/

Posted by on Feb 28 2011. Filed under Analysis, Gold News, Markets. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.

41 Comments for “Plundering the Arabian Peninsula – Possible Gold Shortages Coming?”

  1. You should check this out…

    […] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well […]……

  2. Recent Blogroll Additions……

    […]usually posts some very interesting stuff like this. If you’re new to this site[…]……

  3. Websites we think you should visit…

    […]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[…]……

  4. … [Trackback]…

    […] Informations on that Topic: goldmadesimplenews.com/gold/plundering-the-arabian-peninsula-possible-gold-shortages-coming-3064/ […]…

  5. Websites you should visit…

    […]below you’ll find the link to some sites that we think you should visit[…]……

  6. …Additional Information ca be found here…

    […]Nice blog here! Also your website a lot up fast![…]…

  7. Comment……

    […]Great weblog right here! Additionally your website rather a lot up very fast![…]…

  8. Trackback…

    […]Nice blog here! Also your website lots up fast![…]…

  9. …Trackback: More Informations on that topic…

    […]I am not positive the place you’re getting your information, but great topic.[…]…

  10. Look here for more:…

    […]you made running a blog glance[…]…

  11. …A Friend recommended your blog…

    […]you made running a blog glance[…]…

  12. Link……

    […]Great weblog right here! Additionally your website loads up very fast![…]…

  13. …Recommended websites…

    […]The overall look of your website is excellent, let neatly as the content material![…]…

  14. …Websites you should visit…

    […]The overall look of your website is excellent, let neatly as the content material![…]…

  15. Look there for more:…

    […] What host are you the use of? Can I am getting your associate link on your host? I desire my website loaded up as fast as yours lol[…]…

  16. …Click here for or more Information…

    […]The whole look of your web site is fantastic, let well as the content material![…]…

  17. Message……

    […]you made running a blog glance[…]…

  18. …Recent Blogroll Additions…

    […]Excellent weblog right here! Additionally your site quite a bit up very fast![…]…

  19. Trackback…

    […] What web host are you the usage of? Can I get affiliate hyperlink to your host? I wish web site loaded up as quickly as yours lol[…]…

  20. …Websites you should visit…

    […]Wow, awesome blog format! How long have you been blogging for?[…]…

  21. Trackback…

    […] What host are you the use of? Can I am getting your associate link for your host? I desire my website loaded up as fast as yours lol[…]…

  22. Link……

    […]you made running a blog glance[…]…

  23. …For further Information click here…

    […]Great weblog right here! Additionally your website loads up very fast![…]…

  24. Trackback……

    […]you made running a blog glance[…]…

  25. …Trackback: More Informations on that topic…

    […]Wow, marvelous weblog structure! How lengthy have you ever been running a blog for?[…]…

  26. …Links…

    […]you make blogging glance[…]…

  27. …Click here for or more Information…

    […] What web host are you using? Can I get affiliate hyperlink in your host? I want site loaded up as quickly as yours lol[…]…

  28. Link……

    […]Wow, incredible weblog format! How lengthy have you ever been running a blog for?[…]…

  29. …Take a look for more Information on that topic…

    […]Excellent weblog right here! Additionally your site quite a bit up very fast![…]…

  30. Look here for more:…

    […]The overall look of your website is excellent, let neatly as the content material![…]…

  31. …Take a look for more Information on that topic…

    […]The overall look of your website is excellent, let neatly as the content material![…]…

  32. …Links…

    […]I am no longer certain the place you’re getting your information, but great topic.[…]…

  33. …A Friend recommended your blog…

    […]I am not positive the place you’re getting your information, but great topic.[…]…

  34. …Recommended websites…

    […]The full look of your web site is magnificent, let well as the content material![…]…

  35. …Awesome website…

    […] What web host are you the usage of? Can I get affiliate hyperlink to your host? I wish web site loaded up as quickly as yours lol[…]…

  36. …Recent Blogroll Additions…

    […]The overall look of your website is excellent, let neatly as the content material![…]…

  37. Comment……

    […]Excellent blog here! Also your site so much up fast![…]…

  38. …Trackback: More Informations on that topic…

    […] What host are you using? Can I am getting your associate link on your host? I want site loaded up as fast as yours lol[…]…

  39. …Trackback: More Informations on that topic…

    […]Excellent blog here! Also your site so much up fast![…]…

  40. …Trackback: More Informations on that topic

    […]The entire glance of your site is wonderful, let smartly as the content![…]

  41. Look there for more:

    […]Excellent blog here! Also your site so much up fast![…]

Comments are closed

Gold Investor Report banner

Recently Commented

  • Ome Lawani: Very soon the silver fix mechanism is set to change. What do you think will be the impact on the silver...
  • Steven Allen: Cost increases are probably down to factors such as: bigger festival keeping pace in probably a less...
  • astrogeezer: Eveline Widmer-Schlumpf. Says it all really……… 230;..
  • astrogeezer: Central Bankster retribution day draweth nigh.( Bet their muppets carry the can though!)
  • astrogeezer: They BOE and Carney’s muppet masters can do two things. Blame the weather or revert to alchemy....