Gold For Oil: India And Iran Ditch Dollar – Report -- Forex CrunchAccording 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.
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.
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My Comment: If this report is true .... expect gold to continue it's appreciation in value. This development also tells me that sanctions are working .... that Iran must now go through drastic (and expensive) alternatives to market and sell it's oil.
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