Secret Iran Gold Holdings Leaked: Tehran Holds Same Amount Of Gold As United Kingdom, And Is Buying More

Tyler Durden's picture

While it will not come as a major surprise to most, according to senior BOE individuals and Wikileaks, Iran, as well as Qatar and Jordan have been actively purchasing gold well over the amount reported to and by the IMF, in an accelerated attempt to diversify their holdings away from the US dollar. "Iran has bought large amounts of gold in the international market, according to a senior Bank of England official, in a sign of how growing political pressure has driven Tehran to reduce its exposure to the US dollar. Andrew Bailey, head of banking at the Bank of England, told an American official that the central bank had observed “significant moves by Iran to purchase gold”, according to a US diplomatic cable obtained by WikiLeaks and seen by the Financial Times." The reason for Tehran's scramble into gold: "an attempt by Iran to protect its reserves from risk of seizure”. The misrepresentation of Iran's holdings could be so vast that Iran could possibly be one of the largest holders of goldin the world. "Market observers believe Tehran has been one of the biggest buyers of bullion over the past decade after China, Russia and India, and is among the 20 largest holders of gold reserves... with an alleged 300 tons, big enough to challenge the UK at 310 tons, and more than Spain! " As a reminder according to the WGC, Iran is not even disclosed as an official holder of gold. Also, Iran is not the only one: "Cables obtained by WikiLeaks cite Jordan’s prime minister as saying the central bank was “instructed to increase its holdings” of gold, and a Qatar Investment Authority official as saying the QIA was interested in buying gold and silver." Which means that there is far more marginal demand by countries supposedly friendly to the dollar, as many more than previously expected are actively dumping linen and buying bullion. What all this means for the future price of gold, especially with geopolitical tension in the region,  and QE3 imminent, is rather self-evident.

From the FT:

Andrew Bailey, head of banking at the Bank of England, told an American official that the central bank had observed “significant moves by Iran to purchase gold”, according to a US diplomatic cable obtained by WikiLeaks and seen by the Financial Times.

Mr Bailey said the gold buying “was an attempt by Iran to protect its reserves from risk of seizure”.

Market observers believe Tehran has been one of the biggest buyers of bullion over the past decade after China, Russia and India, and is among the 20 largest holders of gold reserves.

They estimate it holds more than 300 tonnes of gold, up from 168.4 tonnes in 1996, the date of the most recent International Monetary Fund data.

Ummm, according to the WGC the UK (thank you Gordon Brown) has 310 tons of gold... Iran has the same amount of gold in storage as the (formerly) biggest colonial power in the history of the world. And this is not breaking news?

The cable, dated June 2006, is the first official confirmation of Tehran’s buying. Last year central banks became net buyers of bullion after 22 years of large sales, helping drive gold prices to all-time nominal highs. Trades by central banks are often kept secret.

Bankers said other Middle Eastern countries had also been quietly adding to gold holdings to diversify away from the dollar amid political tensions and volatility in currency markets.

“The totality of central bank reserves is not what is reported to the IMF,” said Philip Klapwijk, executive chairman of GFMS, a precious metals consultancy. “There’s probably another 10 per cent on top of that.”

Cables obtained by WikiLeaks cite Jordan’s prime minister as saying the central bank was “instructed to increase its holdings” of gold, and a Qatar Investment Authority official as saying the QIA was interested in buying gold and silver.

“There is no question some Middle Eastern countries are very interested in buying gold,” said George Milling-Stanley, head of government affairs at the mining industry-backed World Gold Council.

Secret undisclosed purchases of physical gold... What next: secret undisclosed selling of paper gold by such unusual suspects as JPM? Unpossible.

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traderjoe's picture

But, but you can't eat it... /s

zaknick's picture

China is helping Iran by duping the US into thinking they are strategic partners but buying them time to finish their nuclear weapons capability (yay! The END of the "unipolar world").

http://www.twq.com/11winter/docs/11winter_Garver.pdf

Saud knows the US is gunning for them as the plan includes regional Sunni v Shia mayhem so they HAVE PUBLICLY BROKEN WITH THE US!!!

http://english.people.com.cn/90001/90776/90883/7324853.html

Bandar Bush betrayed the holy of holies ( again, he defied them in the 80s and bought the denied nuclear capable long range missiles from china).
They are publicly defying one of the biggest US no-nos in the region: cooperating proactively on an overland, pipeline (through Myanmar) for ME oil! In exchange, Saud get nukes!

You are fucked, you Zionist lackeys

zaknick's picture

Ever since the new year when we got this new Durden clone and he dumbed down the conversation, I've had more and more time to do my own research.

Scoooped!

Michael's picture

My friend Debi and I have concluded Tyler Durden is many more than one person. Only Super Man can do what Zero Hedge does if a single person.

Judge Judy Scheinlok's picture

No doubt. You have to admit there have been different teams up at bat here. Remember back in the Blogspot days it was a completely different group.

Unlimited resources.

Michael's picture

As long as the Durden group keep it in the family of trusted friends on a highly scrutinized basis, the ZH site will thrive.

CD's picture

This is mere pointless speculation, but fun nevertheless:

"Ground Zero Strategic Commodities plans to begin trading in the first quarter of next year, according to Bloomberg News. The hedge fund is based in Zug, Switzerland, not Lower Manhattan, but a connection with New York is likely to linger." 8/19/09

http://dealbook.nytimes.com/2009/08/19/hedge-fund-name-may-give-pause-to-investors/

 

 

 

Compare with current article, and ZH policy on 'conflict of interest':

http://www.zerohedge.com/content/zero-hedge-conflictsfull-disclosure-policy

"You should assume that at all times we are so totally just talking our book it would shock and awe you like the unexpected, early-morning arrival of a cluster of BGM-109C Tomahawks (were you a believer in the importance of "optics" that is).

 

If we make a off-hand remark about New Zealand sheep herders it's because we are long New Zealand West Island Cold Kut (NZ-WICK) Wool futures and Kiwi brand Condoms ("For it's pleasure").  If we are joking around about Cliff Asness, it's because we have developed a synthetic short of ARQ.  If we jest about Joe Sixpack, it's because we are trying to hype our cheap-American-beer holdings so we can exit quickly.  Basically, we are telling you about a position we believe in strongly enough to invest in."

 

As a bit of fun ZH trivia: 38% of US citizens fail citizenship test -- check out question #3:

http://www.newsweek.com/2011/03/20/take-the-quiz-what-we-don-t-know.html

"The Federalist Papers supported the passage of the U.S. Constitution.

 

Name one of the writers."

http://www.newsweek.com/2011/03/20/take-the-quiz-what-we-don-t-know/america-s-founding-question-3.html

 

Then read the ZH manifesto:

http://www.zerohedge.com/about

"though often maligned (typically by those frustrated by an inability to engage in ad hominem attacks) anonymous speech has a long and storied history in the united states. used by the likes of mark twain (aka samuel langhorne clemens) to criticize common ignorance, and perhaps most famously by alexander hamilton, james madison and john jay (aka publius) to write the federalist papers, we think ourselves in good company in using one or another nom de plume."

Whoever and wherever TD's are, their continued contributions remain very welcome.

 


Michael's picture

And that is a bad position to have because?

CD's picture

If I had objection to or beef with the position, I wouldn't be here, would I?

A unique and quite laudable experiment, that potentially benefits at least hundreds of thousands of people (possibly millions, depending on measurement/estimate used) directly -- and their families/networks indirectly.

I hope to witness a further unfolding of this potential, and to help in any way I can.

dark pools of soros's picture

twas outsourced...  TD is shooting craps in vegas from the Cramer ad money

Dr. Porkchop's picture

Are you implying that Bruce Wayne and the Batman are two different people?

Yen Cross's picture

LMAO good work. hope the feed is working.

AVP's picture

3/20/11 and you and Debi have just concluded...really! Do you always join blogs without

knowing what your joining? Here this should help...

http://nymag.com/guides/money/2009/59457/

Your welcome...

Sophist Economicus's picture

Wow, and all this from your living room!   Gotta get me one of them there hi-speed connections

Barmaher's picture

Tyler Durden posts have a distinctive style.  If you can't reconize the continuity of that style then it is you who are dumb.

Newsboy's picture

I hope I am not the only one who has noticed the massive ramp-up of ZH information crunching in the past year. It is astounding. This takes big bucks to consistently beat Google news to every single story, whether by minutes, hours or days. This is a big deal.

I salute all who share the name of TYLER DURDEN (may your tribe increase).

Xkwisetly Paneful's picture

No, no mania going on here with the caveman now chasing.

If this doesn't tell one they are on the wrong side nothing ever will.

 

Muir's picture

Who would have thunk it?

duncecap rack's picture

If you don't get more support for those things you'll be wearing them aroud your knees soon.

nmewn's picture

I'm still buying those dips...both of them ;-)

Nobody special's picture

Who even understands it?  What's with the commodity purchases?  /sarc

zaphod's picture

Any comparisons to the dumba** country that thought it was a good idea sell most of their gold holdings 10 years ago at $300/oz, and then brag about it, is sort of meaningless IMHO.

MelvilleSaysNo's picture

But we've got a printing press.

Missing_Link's picture

...  And Iran's gold, once we invade, which will surely be quite soon.

Careless Whisper's picture

Vamos partido!!! Eu posso dançar a lambada na praia no Rio de Janeiro.

http://www.youtube.com/watch?v=1EaLFLoxcdU

 

Careless Whisper's picture

awesome bods indeed. looks like we have a potential vacation spot for the next nuke melt down or bombing or financial crisis.

Michael's picture

Yes, but after they've finished fucking, can they go out and make a decent buck with their marketable skills on a long term basis? Something I've pondered from time to time.

RockyRacoon's picture

Perhaps their "marketable skills" range to marrying a guy like Michael.

Lord Koos's picture

I don't think he could afford it.

Yen Cross's picture

Ahh shucks. the coon patrol?

jomama's picture

nice shameless plug of your youtube account.  

sweet verbatim post on that vid, too.

Vlad Tepid's picture

LOL. Michael is such a tool. He reminds me of the weirdos who hung around the nerds in high school trying to fit in, while not being quite cool enough for the nerds, so he just kept running his mouth hoping something would stick...the verbatim post totally stuck. We love you Michael.

zaknick's picture

In the immortal words of your drug trafficking, genocidal petty thug president:

Bring it on!

Hubris!

And you shouldn't be cheering either stooopid, civilians in the US will be screwed with 10 dollar gas or no gas with the Strait of Hormuz closed because of all the sunken obsolete aircraft carriers.

Don't remember that incident in 2009 when the Chinese sub popped up next the aircraft carrier having gone through like 20 frigates, 10 destroyed, subs etc

Lmao

Crisismode's picture

20 Frigates,

 

Of which 10 were destroyed?

 

And submarine sandwiches?

 

Where are we going with this now??

pan-the-ist's picture

Mutter the word "Iran" and our resident israeli sock puppet shows up.

zaknick's picture

UPDATE

Sarah "I'm just a hillbilly redneck like you" Palin, while wearing a star of david in israhole says China is preparing for war:

http://www.dailymail.co.uk/news/article-1368170/Sarah-Palin-warns-China-...

you betcha!

Tail Dogging The Wag's picture

Sarah Palin... I hear her laptop has many red buttons n keys. One for each country. Who ya gonna bomb next? She can see Russia, China, the Korean Peninsula, and Iran from her house.

Obviously she's in Israel to raise funds. Wearing the star of David? mmm she would wear the Swastika if it would get her more funds for her campaign. The new POTUS.

 

Creed's picture

So many afraid of Sarah Palin, so little time...ahhhhh

RockyRacoon's picture

There is a difference between fear and loathing.  I've never entertained the thought of leaving the U. S., but I'd reconsider under her leadership.

Things that go bump's picture

The thought of that does give one pause, doesn't it?

JB's picture

i think it would behoove one to look into the occult symbolism associated with the "star of david."

caconhma's picture

Trust me, American people will not buy this Jewish-Zionist shit for ever.

When it will be over, there will be no place for you-alike to run.

Yield2Greatness's picture

We'll just buy it from them.  Stupid Iranians...

jesse livermoore's picture

if its good enough for iran its good enough for me....