Iran switches monetary reserves to gold bullion

November 17, 2008 by · Leave a Comment
Filed under: Global News 

This is just another instance of the mainstream press slowly talking about gold and its position as a tried and true form of money and protection of wealth.  Once this crisis passes, I do see that a new currency will appear that will be either backed by gold or its exchange rate will be based on the spot price of gold.  

With this debt-based fiat money system, we have gotten to the point where we do not have much real value behind it because we issue it too freely to fix symptoms of problems and not there causes.  Iran is switching over because they want to make sure they have something of intrinsic value backing there reserves.  With the current price, this is a pretty smart move on their behalf.

Release:

 

Iran has converted financial reserves into gold to avoid future problems, an adviser to President Mahmoud Ahmadinejad said in comments published on Saturday, after the price of oil fell more than 60 percent from a peak in July.

 

Iran, the world’s fourth-largest oil producer, is under U.N. and U.S. sanctions over its disputed nuclear programme and is now also facing declining revenue from its oil exports after crude prices tumbled.

 

“With the plans of the presidency…the country’s money reserves were changed into gold so that we wouldn’t be faced with many problems in the future,” presidential adviser Mojtaba Samareh-Hashemi was quoted as saying by business daily Poul.

 

He gave no figures or other details.

Source: Reuters

 

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!