Iran,​ Arabs​ Switc​hing To Gold,​ Globa​l Crash​ Comin​g?​?​?

[Mrs. Sharon B. Hodge]

Iran,​ Arabs​ Switc​hing To Gold,​ Globa​l Crash​ Comin​g?​?​?

* Reuters, Saturday November 15 2008

http://www. guardian. co. uk/business/feedarticle/8025778

TEHRAN, Nov 15 (Reuters) - 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
Before oil prices plunged by more than 60 percent from a peak of $147 per barrel in July, Iran made windfall gains from its crude exports and in April estimated its foreign exchange reserves at about $80 billion
Iranian officials in July denied reports Iranian banks were moving funds from Europe, with one report suggesting as much as $75 billion had been withdrawn and converted into gold or placed in Asian banks, because of a threat of tightening sanctions
The International Monetary Fund said in August that if the price of Iranian crude fell to $75 a barrel, Iran would face a current account deficit in the medium term that would be tough to sustain due to Tehran's financial isolation
On Friday, U.S. crude fell $1.20 at $57.
04
Gold futures ended more than 5 percent higher on Friday and bullion ended the week about $10 higher compared with its last Friday's close of $735.
95 as investors covered short positions (Reporting by Zahra Hosseinian; Writing Fredrik Dahl; Editing by Jan Dahinten)



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Gold demand rises in Saudi Arabia
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Gulf News
By Mariam Al Hakeem, Correspondent
Published: November 12, 2008, 23:42

http://archive. gulfnews. com/articles/08/11/13/10259112. html

Riyadh: There has been an unprecedented demand for gold in the Saudi market recently, with over 13 billion Saudi riyals (Dh12.
75 billion) being spent on the yellow metal during the last two weeks

Demand is expected to rise still higher as more investors turn to gold as a safe haven in the midst of the global financial crisis, according to market sources

Sami Al Mohna, an expert on the gold market, said the trend had resulted in a substantial rise in the gold reserves of Saudi investors

Since soaring to an all-time high of $1,033.
39 per ounce in March this year, gold has plummeted 30 per cent

Gold for December delivery on Monday rose $8.60 to settle at $726.
80, roughly the same level at which it traded a year ago

"Many Saudi investors see this as the right time for making investments in gold as its price is the most reasonable one at present," said Al Mohna.