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Page added on January 24, 2012

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Gold for Oil: India and Iran Ditch Dollar


According to a new and yet unconfirmed report, India bought oil from Iran using gold. India certainly has the gold resources to fund the oil, while Iran is under pressure by the West, due the continuation of its nuclear program.

There were reports that officials have been floating this idea for some time, and now, as the EU finally decided upon an oil embargo on Iran, more details became available, yet still pend confirmation.

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Oil is priced in US dollars, and bypassing the greenback posed challenges for both parties. Two banks are reportedly involved in this deal: India’s state owned UCO Bank and Turkey’s state owned Halkbank.

Both banks don’t have any business with the US and therefore are less vulnerable to sanctions. According to the report, an Indian delegation has spent time in Tehran and finalized the details of the transactions.

The annual capacity of trade between these two countries is 12 billion dollars. With gold trading at around $1668, that is around 7.2 million ounces of gold.

The step joins Russia and Iran’s announcement to begin trading in their own domestic currencies rather than use the US dollar – a reserve currency.

These details about the gold for oil deal come on the day that EU officials announce an oil embargo on Iran starting on July 1st. Tensions between Iran and the West are mounting and oil is already on the up.

The time it took the EU to reach the decision, and the late implementation date make it very easy for Iran to enlarge exports to oil hungry and fast growing Asian countries.

The use of gold for buying the No. 1 commodity, will likely have positive implications for the precious metal, if this report is confirmed and especially if the use of gold widens to China – the world’s No. 2 economy.

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6 Comments on "Gold for Oil: India and Iran Ditch Dollar"

  1. BillT on Tue, 24th Jan 2012 12:50 pm 

    It seems that oil is being sold for many currencies as China is also buying it with yuan, and both S. Korea and Japan are negotiating it with Iran in their currencies. Russia is setting up a rubble exchange, and other countries will come on board soon. The dollar’s days are numbered, meaning the US Empire is dying. No surprise to most of us who live in the real world.

  2. Indigoboy on Tue, 24th Jan 2012 2:26 pm 

    The three top importers of Iranian crude are China, Japan and India. All three of these countries will make diplomatic noises, that placate the US, but none of them will sacrifice their own countries on the American altar of the petrodollar.
    They (China,Japan,India), know that there is a shift of power from west to east. It’s just a matter of time before they settle on an agreed currency that works for crude trading.

    At the same time, refining capacity in the west is crumbling due to sheer economics of high priced oil.
    Just two examples.

    In world terms, dominoes fall over weeks, months and years. But they do fall.

    The real worry right now is that once the US realise that the crude for dollar battle is lost irretrievably, what will these warmongers do next.

    Already, Obama, (on New Year’s Eve when everybody was out partying), signed the National Defense Authorization Act (NDAA). Section 1021 of this act means that the president can authorize that ((ANY)) U.S citizen can be picked up and detained indefinitely, without a trial.

    Are you scared yet !!

  3. James on Tue, 24th Jan 2012 9:06 pm 

    FINALLY!!!! they grew some balls. Keep it up and the U.S. will be reduced to a sniffling little 3rd World country.

  4. DC on Tue, 24th Jan 2012 9:33 pm 

    So, cant wait to hear the amerikans plans to enbargo and attack Inida, since they are clearly now a rogue, terrorist nuclear state as well. Send in the Marines!. O Wait there 1.3 billion hindus, ok NM…

    Iran is under pressure form the ‘west’ ie amerikan corporate rule, not because of its nuclear program, but b/c Irans oil is state-owned, so is its bank, and they dont want to sell Oil under terms dictated by amerikans. Thats the real ‘threat’ Libya was conquered by US and EU corporations b/c it was small, weak, and really close to NATO bases. India China and Russia, are not. Only reason the US petro-dollar hasnt collapsed allready is they have invaded everyone in the ME that wanted to use Euros or Gold, and they still have there loyal vassal states. But time is not on amerikas side…

  5. Harquebus on Wed, 25th Jan 2012 1:25 am 

    Asian and M.E. nations do not want the dollar to fall. They will lose a fortune. Oh well, it was only paper anyway.

  6. BillT on Wed, 25th Jan 2012 5:39 am 

    Harquebus, what don’t you understand about the switch away from the dollar so they do not go down with the USS America? It has already hit the big iceberg of debt and is sinking fast. The rest of the world sees what American’s are still denying. The end of the dollar. Asia is the new center of commerce for the world and again, only American’s do not see it, but the government does. Why else do you think the focus is now on Asia and off of the ME?

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