India & Iran, Gold for Oil?

[Hawkeye]

Do you think there's anything to this? If it's true, it would be an interesting development.

http://www.rediff.com/business/report/i ... 120124.htm

[Delawhere Jack]

Seems to me that it violates Greshams Law, and the sources (so far) are not the most reliable. Maybe it is more of a phych-op aimed at informed amerikans to get them to pressure there government for more responsible fiscal policy.

[Engineer]

If I remember correctly, Gadaffi and Saddam Hussain both called for oil to trade in gold rather than dollars shortly before we decided to bomb them into oblivion.

[Nickelmeister]

Seems to me that it violates Greshams Law, and the sources (so far) are not the most reliable. Maybe it is more of a phych-op aimed at informed amerikans to get them to pressure there government for more responsible fiscal policy.

I don't believe it at face-value either. At the current market prices of gold and oil, (and import rate) India would have enough gold reserves to buy less than three years worth of oil from Iran.

[Hawkeye]

If I remember correctly, Gadaffi and Saddam Hussain both called for oil to trade in gold rather than dollars shortly before we decided to bomb them into oblivion.

I had that thought too. Coincidence? I agree that it isn't likely or even feasible, but I think it's interesting just to have that option floating around. While it may just be a little posturing, anything like this can't be good for the old dollar.

[Bluegill]

I don't believe it at face-value either. At the current market prices of gold and oil, (and import rate) India would have enough gold reserves to buy less than three years worth of oil from Iran.

India and Iran trade. It is not a one way street. There is a $30 billion in trade between the 2 nations. Both nations have gold. Unless there was a huge prolonged trade imbalance, the gold would rarely if ever actually move. India buys oil from Iran with gold. Iran buys goods and resources from India with gold. They are already doing this with their own currencies.

This is all part of something a lot bigger that is going on in the world. Iran, India, Russia and China are all trading amongst themselves in their own currencies. They are no longer doing business with the US dollar.

To keep thing in perspective, India has over 19% of the worlds population, China has over 17%, Russia comes in at 2%. The U.S. has 4.5%. These are big populations that are also emerging markets. They possess and produce gold, and are nuclear powers. Russia also has large oil and natural gas reserves...

Like everything else in life, take the info in these links with a grain of salt.

http://www.atimes.com/atimes/Middle_East/NA24Ak03.html

http://www.zerohedge.com/news/india-joi ... ran-rupees

http://www.atimes.com/atimes/Middle_East/NA19Ak03.html

http://www.caseyresearch.com/cdd/demise-petrodollar

[Sheikh_yer_Bu'Tay]

Why shouldn't they? Why do they want to use US Dollars (FRN's) that perpetually depreciate with time??? Hell, we have done it to ourselves!

[Delawhere Jack]

I don't believe it at face-value either. At the current market prices of gold and oil, (and import rate) India would have enough gold reserves to buy less than three years worth of oil from Iran.

India and Iran trade. It is not a one way street. There is a $30 billion in trade between the 2 nations. Both nations have gold. India buys oil from Iran with gold. Iran buys goods and resources from India with gold. Unless there was a huge prolonged trade imbalance, the gold would rarely if ever actually move. They are already doing this with their own currencies.

Good point. BTW, I wonder what the penalty for rehypothocating gold is in Iran? Do they cut your hands off?

[Engineer]

If I remember correctly, Gadaffi and Saddam Hussain both called for oil to trade in gold rather than dollars shortly before we decided to bomb them into oblivion.

I had that thought too. Coincidence? I agree that it isn't likely or even feasible, but I think it's interesting just to have that option floating around. While it may just be a little posturing, anything like this can't be good for the old dollar.

My 2 cents is that the government/fed/ECB/EU actually want to inflate away the value of the dollar/euro, and our debts along with it. They just can't say so in public.