Not sure what you mean by "pressure", so my apologies if I
misunderstood...but China and India paying for oil with gold is
actually bullish for gold.
Even the article concludes: "The vast sums involved in these
transactions are expected, furthermore, to boost the price of gold
and depress the value of the dollar on world markets".
There are so many reasons this is positive for gold its hard to
know where to begin. At minimum, if China and India use their
gold reserves for any extended period of time, they'll want to
replace those reserves. To do so these countries are likely
to sell the dollars they're currently stuck with and buy gold to
replace the quantities they've "spent". And just imagine if
they take kindly to the idea of using gold as money...and start
demanding payment from others in this way for things they export.
The dollar would be finished at that point if this idea
spreads!!
New Pressure on gold
Posted by ragwing on 23rd of Jan 2012 at 08:46 pm
This article talks about India and China now will begin paying for Iranian oil in gold. That is a lot of pressure.
http://www.debka.com/article/21673/
Newpressure on gold??? It will actually boost the price......
Posted by RichieD on 24th of Jan 2012 at 06:25 am
Not sure what you mean by "pressure", so my apologies if I misunderstood...but China and India paying for oil with gold is actually bullish for gold.
Even the article concludes: "The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets".
There are so many reasons this is positive for gold its hard to know where to begin. At minimum, if China and India use their gold reserves for any extended period of time, they'll want to replace those reserves. To do so these countries are likely to sell the dollars they're currently stuck with and buy gold to replace the quantities they've "spent". And just imagine if they take kindly to the idea of using gold as money...and start demanding payment from others in this way for things they export. The dollar would be finished at that point if this idea spreads!!
He probably meant demand pressure....
Posted by zwyss on 24th of Jan 2012 at 06:35 am
He probably meant demand pressure....