Article "The best reason in the world to buy Gold'The Above Article is dated April 22nd--the link is set out below
Link>
https://www.forbes.com/sites/gordonchang/2012/04/22/the-best-reason-in-the-world-to-buy-gold/
The Jist of the Article is that effective June 28/12 the NDAA(National Defence Authorization Act)
that Obama signed into law last Dec 31/11 comes into effect. Countries will no longer be able to
buy Oil from Iran with US dollars(unless a US waiver of Sanctions is obtained)
. Last year China Bought $21.7 billion of Iranian Oil and had exports
to Iran of $14.8 Billion, leaving a trading deficit of $6.9 billion.The Article says China has recently
started to buy more oil from other countries like the Presian Gulf Emirates and Russia.
India also had a trading deficit last year with Iran of $6.8 Billion(9.5 minus 2.7). India plans
on paying for a portion(45%) of their deficit with there rupee currency.So China may have to press
Iran to Accept part Payment in their currency(the Renminbi). Countries can apply to US for waiver
of sanctions if they substantially decrease their import of Iran's oil. The Article says India is not
planning to request any waiver from the US.
So if China and India start paying Iran with Gold effective June 28th this could increase gold
buying buy China and India. Say if between China and India, combined,they paid Iran for $5.0
billion of the annual trading Deficit in Gold that would equal approx 3.0 million ounces of gold
annually or approx 4% of annual gold production.
IMHO, Ahmadinejad should write a letter to Obama ,thanking Obama for forcing him to accept
Gold for Payment of Oil, instead of the US Dollar that is constantly being devalued by the money
printing presses.
Long GCU (Waiting for the Buyout effect)