Iran: Euro To Replace Dollar As Oil Currency

[LivinLOS]

IRAN: EURO TO REPLACE DOLLAR AS OIL CURRENCY

Tehran, 5 May (AKI) - In July Iran will ditch the dollar in favour of the euro as the currency in which it will accept payments for its oil and natural gas exports, Iranian president Mahmoud Ahmadinejad announced Friday. The switch, first mooted months ago, was expected but Ahmadinejad's decision comes just as Washington is stepping up pressure on other United Nations Security Council members to act against Tehran for flouting agreements taken with the UN's nuclear watchdog.

Ahmadinejad's announcement, made in Baku, Azerbaijan where the Iranian leader is attending a regional economics conference, appears aimed at weakening the United States' resolve to seek sanctions against Iran if it does not comply with the UN International Agency for Atomic Energy's demands.

Some observers beleive the Iranian move could deal a severe blow the the American currency as many central banks from oil importing nations could choose to stock up their currency reserves with euros rather than dollars.

Wasnt that exactly what Saddam was doing just prior to US invasion ???

Gold at 680+ Dllar at 1.27 EUR... And so it starts.. Hold on for the ride..

[K2]

Not a welcome development ... have to think US is getting to the end game with Iran ... don't really buy the strong EUR argument as negative carry vs. USD and with FED likely to push for 3 more hikes this year that spread is going to widen.

Gold - and metals in general ... getting very over extended - still 1980 was even worse, so for sure there is one heck of roller coaster ride comming up - 2nd half of this year look for volatilty plays (buy gamma).

[LivinLOS]

If Iran shut the pumps even for a few hours just to play thier hand then we could be looking down the barrel (sorry !!) of 100 USD oil..

Everything is more out of whack than the last oil crisis (debtwise, economy wise, etc) and inflation adjusted gold would need to be well over 2k USD per ounce to match those levels..

If I had spread bet 10k a point on Gold when I was buying just as a leverage diversification that 10k would have been 2.5mil return thanks to leverage.. Really wanted to be more aggressive via leverage but didnt / couldnt..

The metals have to pause for breath soon.. Still think commodity is the place to be for next multi year run.. Uranium is a lock.

[Denver]

I have Iraqis working with me here who remember getting 3 USD for an Iraqi Dinar!

Started typing this about 2 hours ago and got distracted so forgotten where I was going with it!

I'll remember in a bit! Derrrrrrr!

[Bobby]

A commodity mutual fund is my best investment for this year.
Together with Eastern Europe, Latin america, Turkey, Greater China and asia in my porfolio, I have a YTD yield of 48% this year.