There has been alot of speculation about the prospect of gold oil trades and now it appears to be happening. The big thing is it may not be just one country either?
With sanctions and all sorts of trade threats against Iran gold oil has been thrust centre-stage. Gold oil trades between India and China could change the way we think of gold for good.
Gold Oil Story
If you’ve been following the Iranian story you know that news of gold oil purchases must be a shot in the arm for this oil rich yet highly sanctioned country. So is the gold oil connection deepening?
It seems not everyone is willing to ignore possible profits from gold oil exchanges set by the US. And if the rumours are to believed in the unfolding gold oil tale countries willing to continue trade with Iran are lined up.
It seems willing gold oil partners in tandem with those wishing to trade in alternative financial vehicles other than the US dollar will no doubt create even more pressure on ailing Fiat currencies.
Gold Oil And The Dollar
Yesterday also brought forth the highly interesting news that India will use gold to pay for Iranian crude oil, while China is expected to follow suit. China and India combined buy around 40% of the 2.5 million barrels of oil Iran produces each day. Looks like the Chinese, the Indians and the Iranians didn’t get Ben Bernanke’s memo.”
Wonder how this will affect the Price of Gold And Oil?
Is the introduction of gold oil trades another nail in Fiat money’s coffin? And is the gold oil trade the start of renewed interest in gold as money. We’ll be keeping an eye on the gold oil ratio over the coming weeks!