India & Iran, Gold for Oil?

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India & Iran, Gold for Oil?

Postby Hawkeye » Tue Jan 24, 2012 8:59 pm

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
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Re: India & Iran, Gold for Oil?

Postby Delawhere Jack » Tue Jan 24, 2012 9:10 pm

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.
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Re: India & Iran, Gold for Oil?

Postby Engineer » Tue Jan 24, 2012 11:01 pm

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.
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Re: India & Iran, Gold for Oil?

Postby Nickelmeister » Tue Jan 24, 2012 11:05 pm

Delawhere Jack wrote: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.
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Re: India & Iran, Gold for Oil?

Postby Hawkeye » Wed Jan 25, 2012 10:05 am

Engineer wrote: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.
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Re: India & Iran, Gold for Oil?

Postby Bluegill » Wed Jan 25, 2012 12:44 pm

Nickelmeister wrote: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
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Re: India & Iran, Gold for Oil?

Postby Sheikh_yer_Bu'Tay » Wed Jan 25, 2012 3:22 pm

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!
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Re: India & Iran, Gold for Oil?

Postby Delawhere Jack » Wed Jan 25, 2012 3:39 pm

Bluegill wrote:
Nickelmeister wrote: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?
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Re: India & Iran, Gold for Oil?

Postby Engineer » Wed Jan 25, 2012 7:55 pm

Hawkeye wrote:
Engineer wrote: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.
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