Gold Telegraph
@GoldTelegraph
THE FUTURE OF FINANCE: COULD COMMODITIES BECOME THE NEW FOUNDATION?
Global finance is shifting, and Saudi Arabia is driving change with bold mineral investments, stronger China ties, and new trade strategies.
Commodities could soon become the foundation of a new financial order.
Let’s dive into it:
Saudi Arabia is accelerating its diversification beyond oil by prioritizing critical minerals as a cornerstone of its Vision 2030 strategy.
Saudi Arabia is laying the groundwork to become a global powerhouse in the critical minerals driving the future of energy and technology, and it is on the move.
The Kingdom is actively exploring the resource-rich Arabian Shield, a vast geological formation believed to contain significant untapped mineral potential.
In 2023, Saudi Arabia and the United States discussed securing key metals in Africa, signalling Saudi Arabia’s intent to strengthen its global presence in critical minerals abroad.
With an estimated $2.5 trillion in untapped mineral wealth, Saudi Arabia is positioning itself as a key player around the world for minerals.
These are the minerals that drive progress and propel humanity forward, making them a crucial pillar of the country’s future.
The Crown Prince’s ambition is clear:
It is to make Saudi Arabia indispensable in the global supply of critical minerals, particularly those vital for the energy transition, such as:
1. Lithium.
2. Copper.
3. Nickel.
So, what’s been happening?
Saudi Aramco, the world’s largest oil producer, is now venturing into lithium, marking a strategic pivot into minerals crucial for battery technology.
Meanwhile, Ma’aden, the national mining company, is in advanced talks to acquire a stake in a Zambian copper mine, further expanding its international footprint.
In 2024, Saudi Arabia’s mining minister confidently stated that there are no barriers preventing the Kingdom from striking deals with Canadian companies.
Canada is home to numerous companies with major critical mineral projects worldwide, which opens up significant opportunities for collaboration.
To accelerate its mining ambitions, Saudi Arabia has launched Manara Minerals, a joint venture backed by Ma’aden and the Saudi sovereign wealth fund.
The venture has said it will allocate $15 billion for investments in foreign mining assets, underscoring the Kingdom’s commitment to securing strategic resources globally.
The country has also expressed its willingness to discuss trade in currencies other than the US dollar and, in 2024, joined a China-dominated central bank digital currency cross-border trial.
It is worth noting roughly 135 countries and currency unions, representing 98% of global GDP, are actively exploring central bank digital currencies.
An intriguing theory currently being discussed—and mentioned by @Frank_Giustra during my conversation with him at Beaver Creek—is that this project could potentially settle deficits in gold, providing an alternative to holding unwanted currency.
Who is in Project mBridge?
1. Hong Kong Monetary Authority
2. People’s Bank of China
3. Bank of Thailand
4. Central Bank of the United Arab Emirates
5. Saudi Central Bank
These are the primary members.
Who are the observing members?
1. Asian Infrastructure Investment Bank
2. The Central Bank of the Philippines.
3. Bank Indonesia
4. Bank of France
5. Bank of Israel
6. Bank of Italy
7. Bank of Korea
8. Bank of Mauritius
9. Bank of Namibia
10. Central Bank of Bahrain
11. Central Bank of Brazil
12. Central Bank of Chile
13. Central Bank of Egypt
14. Central Bank of Jordan
15. Central Bank of Luxembourg
16. Central Bank of Malaysia
17. Central Bank of Nepal
18. Central Bank of Norway
19. Central Bank of Turkey
20. European Central Bank
21. International Monetary Fund
22. Magyar Nemzeti Bank
23. Monetary Authority of Macao
24. National Bank of Cambodia
25. National Bank of Georgia
26. National Bank of Kazakhstan
27. New York Innovation Centre
28. Reserve Bank of Australia
29. Reserve Bank of India
30. South African Reserve Bank
31. World Bank
What makes this so interesting is that it is no secret that China is stockpiling gold with it being:
a) The largest producer of gold.
b) The largest consumer/importer of gold.
Central banks worldwide have been aggressively stockpiling gold for years, but one very intriguing statistic:
Nearly half of global gold purchases since March remain unaccounted for…
Additionally, the United Arab Emirates, a key member of the project, has surpassed London to become the world’s second-largest gold hub, driven by growing Asian demand—creating a new gold economic corridor among BRICS nations.
This is critical to watch, as the petrodollar has been a cornerstone in cementing the US dollar’s status as the world’s reserve currency since 1971.
But are things slowly starting to change?
In July of last year, Saudi Arabia privately indicated that it might consider selling some European debt holdings if the Group of Seven moved forward with seizing nearly $300 billion of Russia’s frozen assets.
The project mBridge transactions can use the code on which China’s e-yuan is built.
In September 2024, a senior Saudi official stated that the country is open to new approaches, including the potential use of the yuan for crude oil settlements.
Who is the second biggest producer of oil?
The Kingdom.
Who is the biggest importer of oil?
China.
Adopting China’s currency in cross-border crude transactions is a key milestone in the yuan’s path toward greater internationalization.
Again, this shift doesn’t happen overnight, but these actions gradually weaken the US dollar’s dominance by localizing trade and encouraging countries to stockpile a neutral asset like gold.
Saudi Arabia’s Public Investment Fund (PIF) signed deals worth up to $50 billion with six Chinese institutions last year, further strengthening the deepening ties between the two nations.
Saudi Arabia is positioning itself at the center of a rapidly shifting global financial and resource landscape.
The Kingdom is signalling a transformative era by accelerating its diversification, deepening partnerships with key global players like China, and taking bold steps toward critical mineral dominance and alternative trade settlements.
The world is watching closely as Saudi Arabia not only reshapes its economic foundation but also challenges long-established financial norms.
Whether through the accumulation of gold, investments in critical minerals, or exploration of non-dollar trade mechanisms, Saudi Arabia is making it clear that it intends to be a defining force in the future of energy, finance, and global trade.
The question is no longer about whether change is coming but how quickly it will unfold.
One thing is clear…
Gold remains at the centre of it all.
