So, is Iran buying gold or not?

CaptHenway

Could somebody please read this

link

and tell me what it means? I see that Iran is dumping Euros and buying gold and the dollar, which should be driving gold up, but it went down today. Does that mean that the dollar is rising faster than gold, or what?

TD

MsMorrisine

I guess so.

""Leveraging this unique status Wednesday was the news that Iran was planning on selling 45 billion euros form its reserves and would replace the pained currency with dollars and gold. ""

tetradrachm

Well, it took them a year or so from the time they said they would be dumping dollars ("worthless pieces of paper" is how Ahmadinejad put it) for euros before they actually started doing it. Euros now make up about half of their reserves. It will probably take them a while to unload 45 billion euros, especially now with the ongoing euro-crisis and the restrictions on western banks doing business with them.

My mind rebels at the thought, but the contrarian in me takes this as a signal to sell dollars and gold and buy euros!

MsMorrisine

<< <i>Well, it took them a year or so from the time they said they would be dumping dollars ("worthless pieces of paper" is how Ahmadinejad put it) for euros before they actually started doing it. Euros now make up about half of their reserves. It will probably take them a while to unload 45 billion euros, especially now with the ongoing euro-crisis and the restrictions on western banks doing business with them.

My mind rebels at the thought, but the contrarian in me takes this as a signal to sell dollars and gold and buy euros! >>




I'd give that contrarian idea some time.

Hungary just added themselves to the list.

I'd have to figure out how many other potential shoes there are to drop before buying into euros.

gsa1fan

Someone must be buying dollar's they are only $ in green.

cohodk

<< <i>Could somebody please read this

link

and tell me what it means? I see that Iran is dumping Euros and buying gold and the dollar, which should be driving gold up, but it went down today. Does that mean that the dollar is rising faster than gold, or what?

TD >>




Iran doesnt have any money. If they did, they would be building refineries. Imagine, all that oil and they cant make gasoline. Poor repressed people.

derryb

it means they see no future in holding euros.

"Leveraging this unique status Wednesday was the news that Iran was planning on selling 45 billion euros form its reserves and would replace the pained currency with dollars and gold."

The two current hot currencies are dollars and gold.

MsMorrisine

more tidbits::

" News today that Iran was starting to unload the European currency adds to speculation that deep-pocketed market participants are starting to withdrawal(sic) capital from the troubled region. Naturally, as the world’s preferred reserve currency and the most liquid counterpart to the euro, weakness in the share currency logically benefits the dollar."


"The first 15 billion euro sale reportedly had already taken place. While Iran is hardly the largest Sovereign holder of euros in the world, they can be ranked among the most reactive. If this nation is worried about the future of the shared currency, the pressure on the market can further depress its value and perhaps eventually lead to divestment from larger investors (like China). "