Turkey pays the price for US Sanctions on Iran by its dwindling gold-for-oil export

Turkey, which is a US ally, is paying the price of the US imposed sanctions on Iran as its gold-for-gas trade with Iran is shrinking.

As per Reuters, U.S. officials have sought to prevent Turkish gold exports, which indirectly pay Iran for its natural gas, from providing a financial lifeline to Tehran, largely frozen out of the global banking system by Western sanctions over its nuclear program.

Turkey, Iran's biggest natural gas customer, has been paying Iran for its imports with Turkish lira, because sanctions prevent it from paying in dollars or euros.

Iranians then use those lira, held in Halkbank accounts, to buy gold in Turkey, and couriers carry bullion worth millions of dollars in hand luggage to Dubai, where it can be sold for foreign currency or shipped to Iran.

The gold exports from Turkey to Iran rose to $6.5 billion in 2012, more than ten times the level of 2011, while exports to the United Arab Emirates - much of it for onward shipment to Iran or conversion to hard currency - rose to $4.6 billion from $280 million.

However, due to the US sanctions, the Turkish bullion exports have fallen to 10.5 tonnes in December from 15.2 tonnes in November.

Read more about it at: Reuters
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Gold found in the 'Aladdin's Cave'

Aladdin may not have been that lucky, but the West Yorkshire Police was certainly so when they discovered a 'glittering Aladdin’s cave' of gold and silver bullion worth £90,000 when they searched the penthouse flat of a credit card fraudster, a court has heard.

Police discovered £90,000 worth of gold and silver bullion when they raided Lam's address [Photo: rossparry.co.uk/syndication - Daily Mail]

West Yorkshire Police officers searched Lam’s home at the Santorini flats beside the river Aire in September 2010 after receiving a tip-off from officers in London.

Ian Brook, prosecuting at Leeds Crown Court, said: 'When they got there the police found a glittering Aladdin’s cave.'

Read more about the haul: Daily Mail 

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Chinese gold demand hits record

Chinese demand for gold hit a record in the first quarter of 2012, according to the World Gold Council (WGC).

Chinese demand for jewellery and gold as an investment hit 255.2 tonnes in the period, helped by purchases during the Chinese New Year holiday.

The WGC said inflation and restrictions on the property market were likely to boost demand further.

But overall, global demand fell 5% to 1,097.6 tonnes, which the WGC blamed on a sharp rise in gold prices.

Read more: BBC News

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Guess the size of the 'All the World's Gold Cube' and its prize

Gold has always fascinated man since earliest of the timeline and there has been a 'Gold Rush' since then to amass as much as possible. Now that much of the world's gold reserve has been in man's possession, can you make a guess how big would be a cube of gold if all the world's gold is collected to make one?

Business Insider has a possible answer. In its one of the latest post, Warren Buffett is of the opinion that the Gold Cube would be about 68-feet per side. This is four feet shorter (and considerably wider) than a tennis court. As Buffett observes, it would fit comfortably in the middle of a baseball infield.

And its price: Approximately $ 10 Trillion.

Read more: Business Insider

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Gold near 6-month low after Italy auction

Gold dropped to its lowest in almost 6-months on Thursday as the euro fell against the dollar after an Italian bond auction saw yields at an unsustainable level and renewed euro zone fears and credit tightness worries.

The latest cause of concern was Italy, which had to pay nearly 7 percent to borrow at a 10-year bond auction, a level seen as still uncomfortably high for a country with such a high debt burden and facing slow growth. A stronger U.S. unit makes dollar-priced commodities such as precious metals costlier for holders of other currencies.

[ via Reuters ] 29 Dec

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Gold rises but ....

[ Reuters ] 7 Dec

Gold edged higher Wednesday, driven by a pickup in the euro and by a rise in exchange-traded fund holdings to record highs, although caution ahead of a crucial European Union summit this week will likely limit gains in the bullion price.

Spot gold rose 0.5 percent to $1,735.74 an ounce by 1459 GMT, set for a second consecutive day of gains.

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