Saturday, November 24, 2012

Iran Accepts Payment in Gold to Get Around Sanctions

Yet another reason the US government hates gold, unlike dealing with paper money in bank accounts, there is no way they can stop international trade in gold and it is difficult to track gold movements.

WSJ reports:

Turkey on Friday acknowledged that a surge in its gold exports this year is related to payments for imports of Iranian natural gas, shedding light on Ankara's role in breaching U.S.-led sanctions against Tehran. 
The continuing trade deal offers the most striking example of how Iran is using creative ways to sidestep Western sanctions over its disputed nuclear program, which have largely frozen it out of the global banking system.
The disclosure was made by Turkey's Deputy Prime Minister and top economic policy maker Ali Babacan in answers to questions from the parliamentary budget committee.

(ht Chris Barcelo)


  1. To the silverbugs out there, take note. You want to be in gold.

    1. A rising tide lifts all boats.

    2. Price of gold reached during last bull market: $850. Current price if gold: $1750. Price of silver reached during last bull market: $50. Current price of Silver: $34. Silver has further to run. The rich are more in touch with reality and have already bought a lot of gold. When the average Joe starts to see what's happening, silver is where he will put his money. It's more affordable: poor man's gold. Did you know that quarters and dimes used to be made, not of gold, but of silver? Gold is a great thing to have right now. I just think silver is the better buy at this point. Silver is money historically, every bit as much as gold. Do you know how much Judas Iscariot was paid for selling out Jesus Christ? 30 pieces of silver. Along with gold, do you know which metal was designated by the framers of the Constitution to be coined as money? Silver. Did you know that some very old one dollar bills were designated "silver certificates". Do you know how annoying it would be to try to purchase an ice cream cone with gold? You would need a microscope to make the transaction. Silver would be easier for such a purpose, but even that may be inconvenient, which is why, for a very small purchase, copper comes into view as money, and also nickel. This is why Kyle Bass bought a million dollars worth of nickels, and why you should be saving all your nickels and also any pennies minted 1982 and earlier. So all of you people who like to bash silver because you think that gold is the one and only monetary metal need to look at money historically. Did people use other metals besides gold to make purchases of smaller size? Of course they did, and for good reason. I just bought 25 oz. of silver Canadian Maple Leafs. Could I have bought a half of an oz. of gold for the same price? Yeah, but then if I needed to buy a box of ammunition from someone, or five gallons of kerosene, I may be out of luck with just a single coin worth enough to buy an AR-15. With the silver I can just give an oz. or two and be on my way. Even buying gold coins at a tenth of an oz. is inconvenient for small purchases because the premium is much higher and even at a tenth of an ounce the coin in gold is still worth enough to buy something worth almost $200 dollars today. Gold will be used for large purchase like cars, houses, yachts, etc. Keep the silver for the everyday transaction.

    3. Gold will not become the standard for currency nor will silver. The Fiat money system is here to stay. That doesn't mean it will always be owned privately as it is now. Governments can issue their own currencies without private banks creating money out of nothing and selling it to everyone. Gold and silver might be used in a transition phase and having some might help during that transition but if people are telling you to buy it don't invest the house in it because you will lose it.

    4. The historical gold/silver ratio suggests that silver is a better buy right now...that's aside from some poorer fundamentals in silver mining versus gold which suggests silver is set up for demand problems down the road.

  2. My grandpa saw it coming. Starting in the 60s (after they took the silver out in '63) he would always keep the "old" coins out and save them.

    I have several boxes full of them.

    Thanks, Bill- I love you.

  3. Gold is the currency of Kings. Silver is the currency of Gentlemen. Barter is the currency of Peasants and DEBT is the currency of SLAVES. Welcome to your new paradigm.....

  4. Above the ground, silver is considerably more rare than gold and offers literally exponentially explosive growth opportunity.

  5. The author's point is that banks do not ordinarily perform transactions in gold. It is much simpler, easier, and a lot more convenient to use the fiat money system, all by computer secured with encrypted certificates. Among governments, they have one another's public certificates. Push a few buttons, and a transaction is done. The same system can also shut out a government, by revoking their certificate.

    On a basic level, this is why ordinary Americans aren't allowed travel into Iran, so we can't take cash or precious metals in. Same with Cuba or North Korea. Nations that are friendly with Iran, though, can easily ship physical cash or metals in, and there's nothing the U.S. can do about it.

    I'm just speculating, though. I don't pretend to understand political science. Something along those lines, anyway.

  6. As a naturopathic physician working in Hollywood, I have consulted with many of the "Rich and Famous." One day, I was talking with Tom Bosley (Happy Days actor and more), about gold. As wealthy as he was, he said, "Remember, you can't eat gold. If there is a crash, a loaf of bread might cost you an ounce!"
    Perhaps after you have a couple years supply of canned, dehydrated food and access to clean water, saving up gold and sliver coins and maybe a little fiat currency is a good idea.

  7. Precious metals should never be at the top of your 'accumulate for hard times' list. As another commenter said, take care of food, water, shelter, power, communication, transport and weapons ... and then get into precious metals. Junk silver (coins) are a cheap and convenient way to get started for most anybody.