Obama Likely To Approve Gold Sanctions on Iran As Currency Wars Escalate

Tyler Durden's picture

From GoldCore Gold Bullion

Obama Likely To Approve Gold Sanctions on Iran As Currency Wars Escalate

Today’s AM fix was USD 1,712.50, EUR 1,315.59 and GBP 1,061.69 per ounce. 
Yesterday’s AM fix was USD 1,709.75, EUR 1,318.23 and GBP 1,063.41 per ounce.

Silver is trading at $33.14/oz, €25.54/oz and £20.51/oz. Platinum is trading at $1,643.00/oz, palladium at $693.00/oz and rhodium at $1,070/oz.

Cross Currency Table – (Bloomberg)

Gold was down $1.60 or 0.09% in New York yesterday and closed at $1,710.00/oz. Silver finished down 24 cents to $32.95/oz for a loss of 0.72%.

Gold is hovering unchanged ahead of the U.S. FOMC policy statement that takes place at 1730 GMT and Ben Bernanke’s news conference is at 1915 GMT.  Investors believe that the Fed will reveal more bond purchases and a continued loose monetary stance which will favour gold and silver’s appeal as hedges against inflation.

U.S. President, Barack Obama and John Boehner, Speaker of the House of Representatives, spoke by phone on Tuesday after exchanging new proposals on the fiscal cliff. Fiscal cliff concerns are likely affecting U.S. consumer and business confidence in the run up to Christmas and this will likely impact an already vulnerable U.S. economy.

Gold-backed ETF’s climbed again to a new record at 76.178 million ounces on Dec. 10th, after dropping off a record high in the prior session, due to robust demand – particularly from the institutional sector.

Gold should reach a new record again in 2013 according to UBS in their daily note today.

Gold reached a record nominal high of $1,921.15/oz (12% below today’s price of $1,714/oz) 15 months ago in September 2011.

Gold analyst Edel Tully said “we remain gold bulls” and maintains an average gold estimate of $1,900/oz for 2013 – 11% above today’s price.

 She cited continuing loose central-bank monetary policies as a key driver of new record high prices.


Turkey’s trade balance may turn on whether President Barack Obama vetoes more stringent sanctions against Iran after the U.S. Senate passed a measure targeting loopholes in gold exports to the Islamic Republic.

Turkey’s gold trade with neighbouring Iran has helped shrink its trade deficit over the past year according to Bloomberg.

Incredibly, precious metals accounted for about half of the almost $21 billion decline.

That’s calmed investor concern over its current-account gap, and helped persuade Fitch Ratings to give Turkey its first investment-grade rating since 1994. 

The U.S. Senate voted 94-0 on Nov. 30 to approve new sanctions against Iran, closing gaps from previous measures, including trade in precious metals. Obama, who opposes the move on the grounds it may undercut existing efforts to rein in the nation’s nuclear ambitions, signed an executive order in July restricting gold payments to Iranian state institutions.

Turkey exported $11.9 billion of gold in the first 10 months of the year, according to the Ankara-based statistics agency’s website.

A very large 85% of the shipments went to Iran and the United Arab Emirates.

Iran is buying the gold with payments Turkey makes for natural gas it purchases in liras, Turkish Deputy Prime Minister Ali Babacan told a parliamentary committee in Ankara on Nov. 23.

Iran provides Turkey with between 21% and 25% of its gas, data from the Energy Market Regulatory Authority and Energy Minister Taner Yildiz showed.

The current-account deficit may fall to $57.3 billion by year-end, according to a bi-weekly survey of economists by the central bank published on Dec. 6. That compares with $77.1 billion last year, when Turkey had the second-biggest deficit in the world, behind the U.S.

The U.S. and the European Union say Iran is secretly pursuing a nuclear weapons capability. Iran says its nuclear program is strictly for civilian energy and medical research.

The trade with Iran is a strategic necessity for Turkey, and the government will view any new U.S. sanctions according to its own interests, Prime Minister Recep Tayyip Erdogan said in Istanbul on Dec. 3. Turkey isn’t concerned with how it pays for the gas it buys from Iran and would pay in “potatoes” if necessary, Yildiz said two days later.

The proposed U.S. amendment introduced by senators Robert Menendez and Mark Kirk is confusing and inconsistent in applying sanctions, according to an e-mail from the White House on Nov. 29 that was obtained by Bloomberg News.

The Menendez-Kirk amendment would allow purchases of Iranian natural gas if payments are made in local currencies into an account that Iran could only use for approved trade.

The State Department said Dec. 7 that nine oil-importing nations, including Turkey, will continue to be exempt from the sanctions aimed at Iran, according to an e-mailed statement. A spokeswoman at the U.S. embassy in Ankara, who asked not to be identified in line with policy, declined to comment the next day.

The gold debate poses a dilemma for Turkey, and the nation’s finances may be affected by the outcome, according to Nilufer Sezgin, chief economist at Erste Securities in Istanbul.

The Turkey Iran gold for energy trade shows the benefits of gold. 

While not a productive asset, it can create much employment, preserve wealth and has important monetary uses – especially in times of crisis.

Gold is becoming an essential means of payment again in the Middle East again. We expect to see this trend continue in the coming months as competitive currency devaluations are pursued by nations globally in order to prevent deep recessions and depression.

In time other large energy exporters such as Russia and Venezuela may take payment for their oil exports in gold.

Those continuing to simplistically call gold “a bubble” have yet to realise how gold is becoming money again. 

As doubts grow about the euro, the dollar, the pound and fiat currencies internationally we expect currency devaluations and currency and gold wars to intensify.

Gold is going from a fringe investment asset to a mainstream store of wealth held by prudent individuals, institutions, banks and nations.

(Bloomberg) -- BofA Favors Gold, Copper for 2013 as Commodities Outlook Neutral
Gold, copper, silver, platinum and palladium will outperform other commodities next year on easing by the U.S. Federal Reserve and supply constraints, according to Bank of America Corp.


Global economic growth will average 3.2 percent in 2013, “modestly” supporting demand for raw materials, analysts led by Francisco Blanch said in a report today. The so-called fiscal cliff of automatic tax increases and budget cuts could tip the U.S. economy into recession and “abrupt policy changes” in Europe may cause “large commodity price swings,” the analysts wrote. The bank is neutral on commodities, John Bilton, European investment strategist, told reporters in London today.

“We expect large-scale policy easing by the Fed and the ECB should push gold prices higher,” the analysts wrote, forecasting gold prices at $2,000 an ounce for 2013 and $2,400 for the end of 2014. “A stronger Chinese economy will likely lend support to supply constrained metals next year, and we expect copper prices to average $7,750 a ton in the fourth quarter of 2013.”

Commodities as tracked by the Standard & Poor’s GSCI Spot Index are down 2 percent this year, led by declines in coffee, sugar and cotton. The gauge almost doubled in the three years to 2011 as central banks and governments around the world took action to boost their economies hurt by the global financial crisis in 2008.

Spot gold, up 9.2 percent in 2012, is rallying for a 12th year as central banks join investors buying bullion to diversify assets. Holdings in exchange-traded products are at a record, data compiled by Bloomberg show, and central banks are also adding to their holdings. Silver has “scope” for a 20 percent rally from the current levels, the bank said.

Bank of America expects grain prices to ease gradually into 2013, while “precariously low inventories” can drive prices higher at the start of the year, it said.

(Bloomberg) -- China Oct. Gold Output 34.6 Tons, MIIT Says
China Oct. gold output was 34.6 tons, according to a statement from the Ministry of Industry and Information Technology on its website today.

Jan.-Oct. output rose 11% to 322.8 tons, the statement says.

(Bloomberg) -- Gold Prices Set to Climb in 2013 as India, China Boost Demand
Gold prices may gain 4.2 percent next year as an improving economic outlook for India and China, the biggest buyers, increases demand, Australia’s Bureau of Resources and Energy Economics said.

Prices may average about $1,740 an ounce in 2013 from $1,670 in 2012, the Canberra-based bureau said in a report today. That compares with a September forecast for $1,560 in 2013.

Fabrication consumption, which includes use in jewelry, electronics and coins, may gain 2.6 percent to 2,715 metric tons in 2013, the report said. Central banks may purchase 450 tons of gold next year from 475 tons in 2012, it said.

Calling a peak for gold price could be premature – The Telegraph Italy has only one serious economic problem. It is in the wrong currency – The Telegraph Keiser Report: BIS Warning Of Global Credit Bubble – Max Keiser

SILVER - The People's Metal
– You Tube For breaking news and commentary on financial markets and gold, follow us on Twitter.


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GetZeeGold's picture



Gold is outlawed.....bitchez!!!

Aegelis's picture

If gold is outlawed then only outlaws will own gold?

Badabing's picture

Can't .....let....anyone.....use.....gold.....as....money....

merizobeach's picture

Gas for liras, liras for gold...  The gold for guns and food?  If I recall, there used to be a place for things called dollars in these sorts of transactions.  Well, nothing lasts forever.

disabledvet's picture

My understanding is that Turkey produces F-15 fighter jets as well. "gas for gold for fighter jets" sounds more like it to me.

EnslavethechildrenforBen's picture

The Author incorrectly stated that the GLD is backed by Gold. Its backed by Tungsten, if it's backed by anything at all.

Manthong's picture

Well, you know..  ol’ Barry’s got his bases covered.


killallthefiat's picture

WTF...it is not money.  Might as well have banned trading in teddy bears

ParkAveFlasher's picture

"My understanding is that Turkey produces F-15 fighter jets as well. "gas for gold for fighter jets" sounds more like it to me."

Does that mean that fighter jets are also a "money substitute"?

boogerbently's picture

Remember that cartoon where the "firing squad" is in a circle around the prisoner?

crusty curmudgeon's picture

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. . . .  This is the shabby secret of the welfare statists' tirades against gold.  Deficit spending is simply a scheme for the confiscation of wealth.  Gold stands in the way of this insidious process.  It stands as a protector of property rights.  If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”  Alan Greenspan

Antifaschistische's picture

I can't wait for Obama to figure out our $50 US Gold Eagle Coins are legal.  You can buy a good used car with four of these coins.   That's $200.00.   Plus $16 for sales tax.  And the used car dealer takes a loss (and saves on income tax) because he paid $4,000 for the car.

Obama coin sanctions coming to a country near you!

blunderdog's picture

That's not actually going to help, anyway.  If your bill of sale for a car worth $7000 says the price was $200, the State will come after you for sales-tax.

They're not THAT stupid.


smlbizman's picture

did anyone else see the 27 second pod cast from isrealnation news..were the clip alledgedly proved assad was gasing his people....i think i picked it up in a link in an article i just cant remember whether kieaser or brother john...but i fully exspected to see it all over the headlines but not a mention.....than i couldnt find it again.....it seemed like such a blatant false flag...anybody else?

otto skorzeny's picture

will probably be as cheesy as that anti-Mohammed movie that "caused" Bengazi- alot of Jew-y looking girls in Buhrkas (really from IDF) going into convulsions from a "gas attack" caused by a smoke machine.

Snidley Whipsnae's picture

My inlaws certainly don't own nothin...

SubjectivObject's picture

.... don't ..... own ..... not...........

! I got i..........t.........shhhhhhhhhhhhhh ................


moriarty's picture

Free trade with a medium of exchange of your choice?

Can’t have that now can we there would be anarchy.

CPL's picture

We're now on the hand jive standard now.


5 hand jives equals a thumbs up.

5 thumbs up equals a high five.

5 high fives is a handjob.

AGuy's picture

Waiting for the headline:

"Obama  To Approve Gold Sanctions on US Citiizens aa Americana seek wealth preservation from a collapsing dollar"


SpanishGoop's picture


Send your gold to me and i will hold it here abroad for you.


Inspections not allowed.


Half_A_Billion_Hollow_Points's picture

fuck the green party, we have to make the gold party

Chump's picture

Let's keep some fucks handy for Congress as well.  See, they're bi-partisan and stuff when it really matters.

machineh's picture

fuck obama's boss: AIPAC

buckethead's picture

Simple and forward. 

Listening to NPR yesterday during some commute time, I heard a piece about Iran and the need to toughen/enforce sanctions which were being flouted. The sanctions exist, (of course) because Iran is a terrorist (turrist according to the previous admin) state.

What acts of terroism has Iran committed? Short answer: None. Long answer: Not fucking one.

Taint Boil's picture



Trav777 [Trav7777] is back!

Smear my ears with jam and tie me to an ant hill …… wait, not the real one?????? Now I am confused.

Element's picture

Hey dude, good to see you back in here.

stormsailor's picture

trav, i remember you from tickerforum.  good to have you back.


baltic dry index is probably down because santa clause goods are already shipped and delivered, no business knows exactly what to expect in january so they are holding off on the new spring line.



Aegelis's picture

Oh I get it, we force Iran into a situation where they have to get as much gold as possible, then we sack 'em and take it.  Verrrry clever Mr. Shadow-String-Puller with his hand in the back of the puppet president.  It is our Manifest Destiny. *nods*

fonzannoon's picture

the night time ideological crowd here jumped the shark last night. I am sticking to the morning market crowd.

PaperBear's picture

Round and round and round we go with WMD lie 3.0

pods's picture

I heard the Hildabeast yapping yesterday that Iran has spread trrrism from Mexico to Thailand.  If that shrieking banshee is after you it means business.

I would say that forcing your private bank's currency on the rest of the world is trrrrism, but since I live here, most are too dumb to think that deep about an issue.

I just hope that the rest of the world can see through our charade.


midtowng's picture

Do the sanctions even matter? Do they really think they can stop an easily hid commodity moving over a common border?

Aegelis's picture

Nono, we don't actually stop them from getting the gold.  We tell them they're not supposed to, then as policemen of the world, bust them and confiscate.  Cha-CHING! $_$  There's no easier way to get Turkish gold than 'free' by force.

mayhem_korner's picture



If gold is just a barbaric relic and not really money, why the need for the sanctions? 

Seems Iran has smoked out the Bernank.

GetZeeGold's picture



Word is Ben Shalom was on the phone early this morning to the President.......dude, what the hell are you doing?

Opinionated Ass's picture

The (Bernanke) Menendez-Kirk amendment would allow purchases of Iranian natural gas if payments are made in (any crap fiat money instead of fucking gold) local currencies into an account that Iran could only use for (anything but yellow metal) approved trade.

trav777's picture

Gold isn't money in the absolute, but it sure does have value to trade.

A lot of people want to argue over gold, but let's look at the dollar...it's a freaking weapon.

Opinionated Ass's picture

And look at the emperor's clothes...freaking awesome, right?

q99x2's picture

The US is losing its grip. The traitors won't go down easily.

toomanyfakeconservatives's picture

The traitorous pussies in Washington and certain other power centers will go out crying and sniveling when the U.S. Marshalls and the military finally does it's job and throws these pricks in prison by the busload... http://www.youtube.com/watch?feature=player_detailpage&v=4s24QXWdo6o#t=3...

otto skorzeny's picture

ATTENTION:the military and cops will do as ordered as they will be the last .gov employees getting paychecks

AGuy's picture

"the military and cops will do as ordered as they will be the last .gov employees getting paychecks"

That doesn't seem to be the case, as the Gov't is cutting benefits for US soldiers and states and local gov'ts are downsizing their police forces. However, it appears that the politicians themselves are still getting their paycheck and many are getting raises as the rest brave austerity.


otto skorzeny's picture

maybe a few cop layoffs here and there but it is very easy to pull in 6 figures as a cop-even podunk town cops pull in 80K . that's what happens with automatic  4% cost of living raises every year-compounded interest don't ya know.

GetZeeGold's picture



Had to lay off the cops....we needed a new bronze statue in the public library.

SilverRhino's picture

The cops I know pull in about $40K a year in podunk towns.