The Iranians are hoarding gold. Should we be too?

[NNN0LHI]

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/middleeast/2006/April/middleeast_April519.xml§ion=middleeast&col=

Iran central bank moves to calm gold rush

TEHERAN - Iran’s Central Bank moved on Wednesday to slow down a sharp rise in the price of gold, state television said on Wesdnesday, as traders spoke of increased public demand due to tensions over the Islamic republic’s nuclear programme.

The price of a gold coin weighing around 10 grammes (about a third of an ounce) reached 1.85 million rials (about 202 dollars) late Tuesday, a 25 percent surge on prices two weeks ago.

Following the Central Bank move to supply more coins -- which many Iranian prefer to buy rather than place cash in a bank -- prices fell back to 164 dollars.

“The price increase in is line with the rise in international prices, but there is an additional psychological factor here,” gold coin trader Javad Zargar told AFP.

[porphyrian]

1. Buy Euros. - n/t

[SlipperySlope]

4. Avoid Euros

Just another fiat currency

[Earth_First]

2. Shhh...the 1%ers are...

That's none of your concern.

[SlipperySlope]

3. Gold is nice, Silver is nicer

I have a little Gold, but I've been stockpiling silver big time for a few months now.




I'm planning on Silver at $100/oz before long.

[BrklynLiberal]

5. I sure wish I had some gold bullion under my bed.

[David in Canada]

6. Silver too!

Gold & silver always have roughly the same buying power. Price fluctuations are how weak or strong the fiat currencies are against precious metals.

However, silver is rising to it's historical high value so it is, in many ways, increasing in buying power. Silver will double in dollar value way before gold does.

Also, stockpile cigarettes. In times of real crisis, they become rather scarce. If you're a smoker, a time of Earth-shattering stress iS NOT the time to quit. If not, cigarettes will allow you to get a good deal in bartering.

[Up2Late]

7. When you say "we" who do you mean? Those with excess cash did...

...or should have already, but "we" here at DU I doubt fall into that category of having excess cash.

If I had a lot of "Dollar Holdings" (which I don't, I'm broke), I wouldn't buy Gold now, the price it too high. Only the foolish and the ultra-Rich will be buying it now.

Plus, the Iranian are, most likely, selling the Dollars and Euros they hold to buy the Gold, for political, idealogical, and most importantly, practical economic reasons. Because if the UN tightens the economic embargo on Iran any further, they will be left with paper money that has no value (because they won't be able to spend it anywhere).

BTW, I have a few Silver "dollar" coins and one 1/10th oz. Gold coin that I bought years ago just to have one. I haven't priced them lately, but I'm sure they have increased in price, but even paying $53.00 for a tiny little coin seemed kind of frivolous to me (on my budget).

[Booster]

8. Hell, no. We'll just nuke them and take all they have - the new

American way, doncha know?:sarcasm: