Gold for Oil: India and Iran Ditch Dollar – Report

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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Yohay Elam – Founder, Writer and Editor

I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.


  1. Arjuna Fan says:

    The western power elite (globalists) WANT the dollar to go under. India is doing the right thing. Anyone who understands REAL economics is going to drop the dollar. I don’t believe I’ve ever seen such moronic comments before. “All cruelty springs from weakness”. It’s the americans who are so weak. Not Indians.

    • SlammoFandango says:

      Anyone who CAN drop the dollar will because the dollar is still being treated as if it were redeemable for a transferable commodity of positive wealth rather than a promise to repay a debt, which is what it is.

      A gun has been held to the heads of all the oil producing nations for the past 40 years in order to hide this dynamic. As soon as the US loses its abiltiy to intimidate all countries into exclusively selling oil for dollars, the rest will follow. They got away with destroying the economies of Iraq and Libya rather than allow them to sell oil for someting other than dollars and this has bought the banksters a few more years. If it is they can not prevent Iran from breaking away for dollars the hole ponzi scheme will fall. Everybody knows this. The US and NATO do in fact have the strength to bring Iran down and save thier world banking dynamic but they can’t if Russia wants to stop them. It looks like Russia wants to stop them. Still, these guys are madmen who simply do not care what happens to humanity so we just don’t know.

    • lynn says:

      What moron said Cruelty springs from weakness? Cruelty springs from intelligence! The smarter the animal the more they will play with their prey. The smarter the animal the more it is likely to intentionally wound another for amusement! Weakness allows cruelty to spread but never did i see a timid wife go out and start beating on people and thieving.

  2. Malik Al Spaghetti says:

    Yes, the globalists WANT the dollar to disappear so they can introduce a NEW currency. This will cause a panic on gold selling (like in the early 80s) and other commodities that will plunge people who bought these into poverty. ANY currency will be instantly devalued (1,000 dollars to 1.)

    While many celebrate the dollar’s demise, they are like the clueless people on a beach collecting shells staring at a wall of water called a Tsunami.

    • jimbo says:

      Are you kidding? Fiat currency worldwide is going to be completely discredited. Gold whether or not if used on official business will be used in the black market. Even Your globalists are no match for the black market. Globalism is dying as this growth and debt based system needs infinite growth to survive. The problem for this paradigm is that the Earth is finite. Your globalists are going down with this paradigm that is increasingly becoming irrelevant and not possible any longer. Real things like gold will be needed to import real things like oil. Fiat printed out of thin air crap no longer cuts it.

  3. Harquebus says:

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

  4. Carlo Marino says:

    I would envision India, the worlds biggest democracy, siding with the Western world in posturing towards Iran. But now that India is nuclear, maybe they think they can do whatever they please???

  5. Mike says:

    If this is to be true,then it could start real vs. fake trading mentality across the world.Would you like didgital dollars or gold for your product?The crash and burn effect of all things fake could send a skyrocketing wave to gold,silver,oil,farmland or anything that has real value.Even the herd might realize that valuable products that you can actually touch and use for something is the way to go.The imaginary world of the wizard of oz and disneyland people will find themselves at the edge of the cliff with no parachute being told by the talking heads to jump,there is no bottom.Get real now.

  6. Bilderburger says:

    The world replacing the dollar right now with sound currencies and commodities was removed.

    Also the issue of gold in general is very interesting. It is very possible that the amount of gold in the world has been downplayed to form this fiat monetary system with the Dollar as reserve currency.

  7. Goldbug36 says:

    Qaddafi demanded gold for his oil, and look where it got him. The U.S. dollar is going to be history, so everybody better be demanding gold for their products and labors.

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