Riyadh, Asharq Al-Awsat- Saudi investors have suffered heavy losses in the international gold markets, a well-informed source revealed, adding that over 22.5 billion Saudi Riyals ($6 US Billion) has been lost since the beginning of Ramadan. Consequently, the price of gold has soared reaching $741 US per ounce.

Meanwhile, the price of raw gold continued to rise, prompting some Saudi investors to strengthen their financial positions or actually register their losses.

Saudi economist and analyst of the gold market Sami al Mohanna rejected the possibility of Saudi Arabians strengthening their financial positions especially those who are dealing in bulk amounts, and told Asharq Al-Awsat that they should accept these losses.

Al Mohanna highlighted that despite the increase in the price of gold, many investors still want to buy raw gold because they consider it safe with respect to their savings. He expected that the price of gold per ounce would exceed $1000 US in 2010, especially considering the difficulties that some countries have been subjected to. He added that losses resulted from transactions and open sales by investors where the buyer does not have a fixed price causing heavy losses. Finally, he added that the cost of a kilogram of gold has reached 88,600 Saudi Riyals.

In light of the weakness of the gold market and for other reasons, many investors are turning to Saudi’s neighboring countries for investment opportunities also in the real estate market that has been witnessing a remarkable boost over the past few years.