Gold prices to double, Saudi output to rise 10x: Suleiman Al-Othaim

Sulaiman Al-Othaim, Chairman of Saudi Gold Refinery Co.

Gold prices are forecast to double over the coming 30 years due to the political and economic climate, which will weigh down the US dollar, Sulaiman Al-Othaim, Chairman of Saudi Gold Refinery Co. (SGR) and Sulaiman Al Othaim Jewellery, told Argaam.

Al-Othaim also sees gold becoming the key approved currency worldwide.

Speaking on the sidelines of the Future Minerals Forum (FMF), Al-Othaim said Saudi Arabia currently produces approximately 10 tons of gold per annum (pa), and the production is likely to increase 10 times by 2030.

SGR runs a state-owned gold mine in south Saudi Arabia with a production capacity of 1-1.5 tons pa, and pays fees at 21% of the sector production.

Saudi Arabia currently has 10 gold mines, nine of which are owned by Saudi Arabian Mining Co. (Maaden), said Al-Othaim, expecting the number of mines to rise by 100-300 by 2030, backed by the government support for investors.

The Kingdom is among the world’s top five gold consumers, said Al-Othaim, adding that Saudi Arabia may rank the first or the second as tourism activities and Umrah visits help expand the market.

He also noted that SGR plans to go public before 2030, as it has been finalizing the requirements of the operating licenses since 30 years.