Iran Gold Imports From Turkey Surge To $8 Billion YTD As Gold Increasingly Used As Currency

Tyler Durden's picture

From GoldCore

Iran Gold Imports From Turkey Surge To $8 Billion YTD - $3.2 Billion Worth Of Bullion In Q2 2012

Today’s AM fix was USD 1,731.00, EUR 1,352.77 and GBP 1,081.33 per ounce.
Yesterday’s AM fix was USD 1,732.75, EUR 1,355.09 and GBP 1,082.63 per ounce.

Silver is trading at $33.57/oz, €26.36/oz and £21.02/oz. Platinum is trading at $1,602.75/oz, palladium at $668.20/oz and rhodium at $1,025/oz.

Gold fell $8.80 or 0.506% in New York yesterday and closed at $1,729.20. Silver closed in New York at $33.57 down 0.06%.

Cross Currency Table – (Bloomberg)

Gold inched higher on Tuesday as investors await the German ruling on the eurozone’s bailout fund and a possible US Fed decision on QE3. There are expectations of a pullback by market participants, including clients, but what tends to happen after break outs like this is that gold continues to surprise to the upside and buyers only buy with conviction after gold is at record highs in dollar terms and again making some headlines. 

0800 GMT tomorrow is the German constitutional court decision as to whether Germany can contribute to the European Financial Stability Mechanism.  

The court has already rejected a last bid by Peter Gauweiler to delay the case (because of Draghi’s pledge of unlimited funds to buy government bonds) and its decision tomorrow is crucial to the future of the euro and the eurozone.

If Germany does not ratify the ESM treaty, the ESM and other bailout measures may be thrown into chaos leading to considerable market volatility tomorrow. A no vote would likely see a considerable increase in risk aversion.

Last week, Mario Draghi announced the ECB was ready to buy unlimited quantities of short-term government bonds of nations signed up to rescues from the ESM or the temporary European Financial Stability Facility it is designed to replace.

XAU/EUR Currency Rate – (Bloomberg)

Gold has gained almost 7% in the past month on news of the ECB bond buying plans and hints from the US Fed minutes released saying that action would be taken to stimulate the US economy if necessary.  

Gold is increasingly attractive as a safe haven for investors as a hedge against inflation due to rampant money printing by central banks.

Gold USD Daily Rate – (Bloomberg)

Diversification into gold continues with gold holdings in exchange-traded products backed by gold rose to a record for the fifth straight session. The amount increased 6.3 metric tons, or 0.3 percent, to 2,480.43 tons.

Credit Suisse and Unicredit have joined JP Morgan, Goldman, UBS, Bank of America and other banks in revising upwards their gold forecasts.

Gold will advance to $1,775 an ounce in three months and $1,850 in 12 months, Credit Suisse Group said in a report which was picked up by Bloomberg.

UniCredit sees gold returning to $1,900/oz an ounce towards the end of 2012. 

UBS increased its near term precious metals prices on “strong” likelihood of QE3, given the poor payrolls report. UBS raised the 1 and 3 month gold price estimate to $1850/oz from $1700. Silver to $37/oz from $32/oz and $35/oz respectively previously

Central bank demand internationally continues and demand for gold in the increasingly volatile Middle East remains robust as seen in data from the Istanbul Gold Exchange.

It showed that Turkey’s gold imports were 11.3 metric tons last month alone. Silver imports were 6.7 tons, the data show. Much of these imports may be destined for Iran where imports have surged an astonishing 2,700% in just one year – from $21 million to $6.2 billion.

In the first seven months of this year, Turkey's exports to Iran have also skyrocketed to $8 billion, up from $2 billion in the same period last year. And it is widely believed that the major portion of the increase, which is $6 billion, stems from the export of gold.

There is speculation that the Iranian central bank is buying gold and that they may be accepting gold in payment for oil and gas in order to bypass western sanctions.

XAU/GBP Currency Rate – (Bloomberg)

Turkey is paying for the oil and natural gas it is importing from Iran in gold, Turkish opposition deputies have claimed, drawing attention to the enormous increase in Turkey's gold exports to Iran in 2012. 

“Gold is being used as an instrument for payment. Under the guise of exportation, gold is being sent to Iran in exchange for oil,” Sinan Aygün, a deputy from the Republican People's Party (CHP), has told Turkish daily Today's Zaman.

Iranian people, encouraged by the state are also buying large quantities of gold and saving in gold in order to protect against inflation and the devaluation of the Iranian real.

Turkey's total gold and precious stone exports have amounted in the first seven months of 2012 to nearly $8.9 billion, while the figure was only $1.8 billion in the same period last year.  Some $3.2 billion of Turkey’s $4.4 billion of gold sales to Iran in the first half of the year were in bullion form.

Iranians purchased $4.8 billion worth of gold in 2012's second quarter, up from roughly $1 billion in the first quarter of the year. 

Iran appears to be circumventing western sanctions in this way.

The rise marks the continuation of a gold buying spree that saw sales in the first half of 2012 grow more than eight fold over the first half of 2011.

The US is said to be uneasy about Iran's skyrocketing purchases of Turkey's gold and has been following the sales closely.

There are rumours that Iranians purchase Turkish gold via third parties in order not to be noticed and that they entrust the purchased gold to the Central Bank of Iran (CBI), again via third parties. 

The Central Bank of Iran supports the purchases to order to create an “economy of resistance” in the face of increasing sanctions from Western countries.

Iranians have turned to gold as a method of saving in the face of tightening Western sanctions.

People, companies and banks in Iran are buying gold as a safe haven against months of sanctions induced currency devaluation.

This trend looks set to continue and may even intensify if Israel attacks Iran in the coming months.

For breaking news and commentary on financial markets and gold, follow us on


Gold Advances on Outlook for Further Stimulus at Fed Meeting - Bloomberg

Gold firms; investors eye Fed decision, German ruling
- Reuters

Gold Fields: South African miners strike spreads – Market Watch

Gold to hit $1,900 by early 2013: Commerzbank – Market Watch


The euro crisis is not over and is about to get interesting – The Telegraph

Fiscal cliff. Market crash. Depression: A way out – Market Watch

Euro optimism won’t last for long – Market Watch

ECB's willingness to plainly not enough in itself to save the euro – The Telegraph

Roubini: Gold Is "Speculative Investment"; Have "Market Weighting" - Retuers

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Alpo for Granny's picture

Barbaric Relic Bitchez!

GetZeeGold's picture



I only use Mastercard......I'm not a Barbarian.


malikai's picture

Well, that makes two things to gain from the invasion.

King_of_simpletons's picture

Global Stock Markets are dealing with Manufactured Wall of Worries. The reality is the collapse has already happened.

GetZeeGold's picture



The reality is the collapse has already happened.


Well are you going to tell them.......or did you want me too?


ToNYC's picture

Indeed, the debris field is populating in slow motion. The US is playing checkers, but Iran plays chess.

As Salaam Aliekum. God is everywhere, catch the Spirit wholely when you can.


Colonel Klink's picture

You are if it's a Capital One Mastercard!

Chief_Illiniwek's picture

Are the Iranians doing this just to spite Charlie Munger?

GetZeeGold's picture



Use the other fork for the salad freakin Hun!


quasimodo's picture

Say it isn't so Ethyl

Dolla 4eva BABEEE!!!!

buzzsaw99's picture

they aren't really buying it if they aren't using clownbux. [/sarc]

CrawdadMan's picture

that does bode well for Bernanke and his friendsl.

LongSoupLine's picture

Very stupid to exchange gold when they can use the iPhone5 coming out today.

crusty curmudgeon's picture

Some really smart people are saying the dollar is not in jeopardy of losing its reserve status.  I think they are blinded by the past 40 years.  It's simply a matter of when, not if, and I'm beginning to think it's not far off.

Ace Ventura's picture

+1  I've lost count of how many otherwise intelligent people are utterly convinced that the dollar will always be the reserve currency. The reasons are many, typically such as:

-when other currencies drop, everyone runs to the dollar

-much of global economic transactions are conducted in dollars

-chinese need a strong dollar so we'll buy more of their plastic trinkets

Etc, etc, etc. All of the above is temporary comfort at best. The real key is the petro-dollar. Once that gets sufficiently undermined/circumvented.....look out.

crusty curmudgeon's picture

They also say there isn't enough of any other currency.  Now isn't that "ironical"?

ATM's picture

Scott Minerd at Guggenheim put out one of the best pieces on how he views the Dollar/Fed/Gold recently.


I'd suggest anyone interested in the views of one of the few money mangers who has been almost exactly right in his macro views take a short read.

Colonel Klink's picture

And that's the moment when all the inflation we've been exporting comes rushing back onto our shores!

MAN there's gonna be A LOT of pissed off surprised people!

Vincent Vega's picture

Iran better be careful or they may be declared a terrorist nation and subject themselves to all kinds of sanctions. <sarc>

ATM's picture

sanctions = smart bombs right?

Vincent Vega's picture

Ask Hosni Mubarak or Saddam Hussein.

the not so mighty maximiza's picture

So huh i guess the Iranians don't like the US dollar.

GetZeeGold's picture



Those cats don't like much of anything.


apberusdisvet's picture

When the vaults at the COMEX, LBMA are discovered empty, will they then be used for a righteous purpose; i.e. bankster dungeons, complete with the rack?

malikai's picture

Reminds me of that vault scene from Harlem Nights.

Take short little breaths.

oddjob's picture

Still waiting for your massive Gold correction $50 ago.

malikai's picture

Would you like a refund?

oddjob's picture

Accountability is free.

malikai's picture

So is a 'Beta Program'.

NoField5's picture

Maybe the Chinese are doing the same thing?

epwpixieq-1's picture

No. They are quite smart to pay with their own currency than with real gold. At the end there are a lot more trees, and can be grown also, than gold.

Nacho Libre III's picture

Then chairman Bernanke should go ahead and yank those useless usd swaps that were all the rage with the banking universe a few month ago. Seems like they're pretty useless.

falak pema's picture

In days of old when Ottoman knights were bold there are stories told of Ottomans beating the shit out of Safavid shia kings in name of Sunni Caliphat.

Then came Ottoman decadence and western resurgence since nation state days and birth of entrepreneurial capitalism fed on Renaissance (Erasmus/Gutenburg), and scientific (Galileo/Newton) Western civilization teats that flowered into Enlightenment and industrial age.

Islamic decadence over three centuries has led to current occupation of Oil patch by the West after the demise of Ottomans.

If in the coming decade the new Ottomans and the new Safavids abandon their age old rivalry fed on the two faces of Muslim God, and concentrate more on secular progress, we could see emerge an alliance between Istanbul and Tehran that could become a boulevard for regional Renaissance. Given that the Arab nation is now totally decimated in obscurantist and oligarchy imposed gridlock run from DC, via royal surrogates ensconsed in feudalista castles and tiny nation states full of petrodollars. 

That would be a game changer from inside the regional box; Aladdin rising from the Thousand and One nights to claim the people's due! Turkey and Iran are two nations with a past.

Its necessity that stays the mother of invention. The more the top down imperial repression goes viral the more the bottom up regional fervour for new beginnings becomes inevitable. 

Watch out, first world. 

helping_friendly_book's picture

It will never happen. Thinking Twelvers and Sunni will collaborate is like asking the Pope to share the Vatican with the Presbyterians.

Watch the news lately?

Assad, a Shi'te leader, is being attacked by Sunnis.

10 out of 12 Decendants of Muhhamud, which form the basis of the Twelver, Shia, branch of Islam were poisoned by the Caliphate rulers i.e. Sunnis.

I don't see a reconciliation any time soon. 

falak pema's picture

Assad is alawite, not shia.

Nasser, Mossadegh and Ataturk were secular. It needs a strong leader to start.

If Turkey and Iran fall back further into obscurantism and religious intolerance, they will condemn region further into regression. 

As it is from Paki to Morocco and beyond the Muslim world is heading back to muslim dark ages. 

Twelvers and Sunni have to shed their outer ideological skins if they want to survive. The nation first has to become rule sometime along this path. 

How can five hundred million moslems continue to grovel in this obscurantism; and for how long?


d edwards's picture

Wait, wait! We all know gold isn't currency-right? wrong!

Every freaking country in the world is stockpiling gold-Russia, China, Iran-somethings coming and it ain't good!

JPMorgan's picture

You mean to say Iran have a shit load of oil and gold... so when do we invade?

Obama says he just needs to dupe the public into a second term then it's game on.

Zero Govt's picture

"The rise marks the continuation of a gold buying spree that saw sales in the first half of 2012 grow more than eight fold over the first half of 2011."

Meanwhile the Gold price has tanked during those same 6 months 

No Euros please we&#039;re British's picture

But, but, but I don't understand, gold isn't money.

supermaxedout's picture

Things are easy to understand.

Iran does not accept US Dollars anymore as payment for its oil since 2009. But Turkey needs the oil for its economy.  So Turkey is buying with its US Dollars usually used for the oil purchase gold and pays then its oil bill in Iran.

This shows also how deeply the US and its Nato ally Turkey are appart.


ATM's picture

Not really. It only means that for Turkey it's oil supply is most readily accessible from it's oil rich neighbor - Iran. It's a logistical problem for the Turks more than anything else. 

supermaxedout's picture

But ther is lots of oil in Northern Iraq which is called Kurdistan. Exxon, Chevron. Total etc made huge contracts with the Kurds regarding the oil in North Iraq (Kurdistan).  So there is lots of oil very close to Turkey, stable under US military control. This oil is priced in US Dollars but the Turks do not want to buy it because it would enrich the Kurds thus building up Kurdish military power, thus threatening Turkey in its bone. 

helping_friendly_book's picture

Old news!!!! We have known about the gold/oil trade for many months. They will pump it and someone, with some currency, will buy it. I don't think it is worth the USA going to war?

Oh....uhhmmm....but, that was not the reaction when Saddam started pricing oil in Euros. We hung him and filmed it.

Petro-gold just doesn't have the same ring as petro-dollar. The Treasury/Pentagon will, most certainly, launch an all out attack if Iran dare price oil in a currency other than the USD.

You must see, folks, these troulbles in the ME have nothing to do with fission or Zionism or Islam.

It is a matter of pricing mechanism. The "team" only prices oil in US Petro-Dollars.

Any other pricing mechanism will make Treasury Notes worthless and cause all out, total, war.

There will be a false flag pretext soon. Probably about some threat to Saudi Arabia or theat to that stupid oil platform owned by Iraq. I give it another week until an all out strike on Tehran. 

First we cut their access to Dollars, through sanctions, then attack them for pricing oil in another medium.

By the way:

It is a fact that we sold and delivered to the Iranians, right before the Islamic Revolution, the exact same printing presses the US Treasury uses to print Dollars. Those presses caused the Treasury to put all those nifty security features on our currency. The Iranians were printing Frannklins like they where going out of style.

youngman's picture

All I know is a lot of countries are buying gold.....I do not think anyone is some time there will be a paper squeeze...another crisis...that is when the Politicians will bail out the paper holders...again...

gbresnahan's picture

Watch the Obama administration call for confiscation of all gold in the name of national security...

Colonel Klink's picture

And let's see how many SUCKERS fall for it.  Or maybe I should have said Zuckers.  Oh wait, they'll have it sewn into their clothes.

JOYFUL's picture

It's acutely ironical that the huge downturn in Turkey's exports to the EU, and resulting balance of payments problem(2nd only to the USA)has been somewhat offset by the helpful embargo on Iran and the necessity of gold for oil trade...if the Merikans push too hard on that issue, this economy will be ripe to go the way of the rest of the Club Med states...(could that, in fact even be in the playbook?)

the Turks are in a vice, with Zato on the one hand pushing them into a confrontation with Syria's secular leadership that can only backfire in a big way domestically, while their neo-Ottoman dreams of a resurgent Sunni middle east under their direction fade into a morass of Saudi-sponsored(tel aviv directed\CIA produced)Al Qaeda mercenaries looking to declare Sharia Law and purposely discredit all Muslims with their PNAC inspired gangster state program...

only by coming to grips with recognizing their considerable debt to Persian ascendancy in the arenas of culture, business, and scientific innovation could Ankara hope to smooth the trouble waters it has been beating up with the silly, self-defeating rhetoric coming out of the leaderships' mouths...

but humility has never been a strong suit of the Turkish persona.

philosophers bone's picture

Follow the Yellow Brick Parking Lot