Archive
India to pay gold instead of dollars for Iranian oil. Oil and gold markets stunned
India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, debkafile’s intelligence and Iranian sources report exclusively. Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran’s total exports of 2.5 million bpd. Both are superpowers in terms of gold assets.
By trading in gold, New Delhi and Beijing enable Tehran to bypass the upcoming freeze on its central bank’s assets and the oil embargo which the European Union’s foreign ministers agreed to impose Monday, Jan. 23. The EU currently buys around 20 percent of Iran’s oil exports.
The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets.
Iran’s second largest customer after China, India purchases around Read more…
Why Has Gold Been Down?
In spite of some short-term fixes, there remains no real resolution to the sovereign debt issues in many European countries. We’re certainly not spending less money in the US, and now we’re bailing out Europe via currency swaps with the European Central Bank. Shouldn’t gold be rising?
Yes, but nothing happens in a vacuum. There are some simple explanations as to why gold remains in a funk.
- The MF Global bankruptcy, the seventh-largest in US history, forced a high degree of liquidation of commodities futures contracts, including gold. Many institutional investors had to sell whether they wanted to or not. This is similar to why big declines in the stock market can force funds and other large investors to sell some gold to raise cash for margin calls or meet redemption requests.
- The dollar has been rising. Money fleeing the Eurozone has to go somewhere, and some of it is heading into Read more…
Why This Gold Boom Will Be So Much Bigger Than The Last One
As I mentioned in The Wrap last night, the gold market was comatose until shortly before the London open…and the rest, as they say, is history.
There was another spike up shortly after London opened…and from 9:00 a.m. in London, until the Comex open at 8:20 a.m. Eastern time, the gold price tacked on an additional ten bucks.
As soon as Comex trading began…and the jobs numbers were made public at 8:30 a.m…the gold price added another twenty bucks…and by 9:00 a.m. Eastern time, gold was up about $55 from Thursday’s close. The price slid a hair from that point until just a few minutes before the Comex trading session closed at 1:30 p.m…but tacked on over ten dollars in the electronic trading session that followed, closing the day virtually on its high…up $58.80 spot. Volume was surprisingly light.
The Read more…
Wikileaks Discloses The Reason(s) Behind China’s Shadow Gold Buying Spree
Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar’s reserve status. Putting that into dollar terms is, therefore, impractical at best, and illogical at worst. We have a suspicion that the following cable from the US embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24 karat pool. The only thing that matters from China’s perspective is that “suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the Read more…
The Largest Bubble in U.S. History
On August 6th after S&P downgraded the U.S. debt rating from AAA to AA+ with a negative outlook, NIA prayed that Americans would not make the mistake of buying U.S. Treasuries as a safe haven. We normally don’t pray about economic matters, but only God can save the U.S. economy today as well as investors who have been brainwashed into believing U.S. government dollar-denominated bonds are a safe place to store wealth. Unfortunately, only when hyperinflation arrives will the majority of American citizens realize that fiat U.S. dollars should be used as a medium of exchange only and not a place to store wealth.
Since NIA was launched two and a half years ago, the overwhelming majority of our economic predictions have come true, with many of our accurate predictions being unique only to us. Sometimes we are a bit early with our predictions, but they almost always eventually come true. One of our predictions that Read more…
Liberty Dollars may be subject to seizure (Your private stash of silver&gold)
Liberty Dollars held by collectors may be subject to seizure as contraband by federal law enforcement, officials with the U.S. Attorney’s Office and Secret Service said Aug. 24.
Statements by officials for those two federal law enforcement agencies seem to reverse the position taken in comments released from the United States Attorney’s Office in Charlotte, N.C., and published in Coin World in April, that mere possession of Liberty Dollars did not constitute a violation of any federal statute.
That position has apparently changed, although officials of the U.S. Secret Service — which would be the federal agency likely charged with executing any possible seizures — would not provide any definitive comments concerning under what circumstances Liberty Dollars would be seized.
The revised stance is tied to the Liberty Dollar being determined in a federal court to violate federal counterfeiting statutes. Liberty Dollars, metallic medallic pieces, were privately Read more…
The Central Banks and Gold
By Doug Hornig
If the mantra of the wise investor is “Buy low, sell high,” then those who run most of the Western world’s central banks must suffer from dyslexia.
These banks sold off their gold reserves for years, right into the teeth of a generation-long bear market. The last year before the sales began – i.e., during which central banks were net buyers of gold – was 1988, when the price of the metal fell from $485/oz. in early January to $410 at year’s end.
From then and right through the end of the century, they continued to sell as gold dropped steadily to its modern low of $250. The banks were in such haste to divest themselves of this disrespected relic – their single tangible asset – that it was deemed necessary to Read more…
World Gold Council Say Demand to Rise
The World Gold Council reports that demand in Asia remains high for Gold. This was seen in Q-2 where total Global Gold demand measured 919.8 tons, almost a record demand at US$44.5-B.
The Top markets were India and China, accounting for 52% of the total Bar and Coin investment and 55% of Global jewellery demand.
The Gold council is also calling for demand to be high 2-H of Y 2011.
Indian and Chinese demand grew 38% and 25% respectively during Q-2 of Y 2011 compared to the same period in Y 2010, the growth is due to increasing levels of economic prosperity, high levels of inflation and Read more…
Peter Schiff says no ceiling for gold prices
Peter Schiff says gold is more than just another precious metal. According to the president of Euro Pacific Capital, gold is a thermometer for the economy. And with gold prices at a high of $1851 an ounce, the economy isn’t getting any healthier.
“Gold going up every day is saying that Read more…
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
crisisboom
CRISISBOOM 
You must be logged in to post a comment.