Iranian Oil Purchased with GOLD??

Yes. It seems that India will skirt financial embargo efforts on the Iranian government by making its purchases in gold. The article says China may follow suit. This would be a major first. Not sure how it will affect gold markets, but I tend to believe that it will initially pump the markets up, as supply draws down. If Iran wanted to screw with the markets, they could then dump the gold in a very short time period and trash a lot of investments in the West…. payback, in an ironic way.

http://www.debka.com/article/21673/

“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.”

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