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Iran bank coin sale bursts “gold bubble”

TEHRAN (Reuters) - The price of gold coins in Iran fell by more than 4 percent after the Central Bank started supplying newly-minted coins to the market, Iranian newspapers reported on Sunday.

“The gold bubble burst”, read a headline in daily Jam-e Jam, referring to Saturday's decline in the price of a standard Iranian gold coin to 2.69 million rials from a record high of 2.82 million rials reached last week.

The market was closed on Friday, which is a public holiday.

On Thursday, the Central Bank announced plans to inject 5 million newly-minted gold coins into the domestic market in order to control rising coin prices and restore balance in the market...

http://tehrantimes.com/index_View.asp?code=208083



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nothing more then a crock of

nothing more then a crock of sh!t......

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

What I'd Like To Know Is,,

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Are these Gold coins legal tender in Iran?

beesting

Wikipedia doesn't mention

Wikipedia doesn't mention gold in their Iran page. If they had been backing their currency with gold, now they'd have less gold to back it with for their temporary cheapening of gold.

contradiction in this article

another problem is that there is a contradiction in this article.

they write "the Central Bank announced plans to inject 5 million newly-minted gold coins into the domestic market in order to control rising coin prices"

how is injecting more coins into the market going to decrease the coin prices?

they mean to say they want to control the "rising prices [of goods]," (with a weakening national currency), not the rising prices of "gold coins." the author confuses his pronouns, and turns the whole article into one amphiboly after another.

this confuses the casual reader, but the fact remains that injecting more gold coins from reserve will only cause gold coin prices to fall even more. so they don't actually have a vested interest in keeping the value of a gold coin lower for consumers to buy, as this article would have you believe.

rather, their central bank is trying to keep their currency inflation in check by selling off gold into the hands of the general public, in exchange for more paper at home to stabilize prices on the short term.

Thanks,

for you explaining this.

"We can see with our eyes, hear with our ears and feel with our touch, but we understand with our hearts."

Because the Iranian government is so savvy

How laughable!

At least their people will have some cheap prices for a bit. If I knew someone in Iran I'd ask them to buy coins for me!

There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.
-Professor Bernardo de la Paz, The Moon is a Harsh Mistress
Robert A. Heinlein

History does not long entrust the care of freedom to the weak or the timid.
Dwight D. Eisenhower

The Iranian Central Bank...

... they might not be a Rothschild-controlled central bank (which is good), but they are still fools if they think this is going to have any long term impact. Maybe the Iranian elite have their own version of the Plunge Protection Team?

I'll be happy to take that statement back if anyone can show me the economic logic behind this.

what do they mean, bubble?

you can't have bubbles with gold, in the economic sense. in less they are suggesting there are a massive amount of people invested in some sort of speculative futures trading (paper)...?

this is spin, or it was written by somebody who doesn't understand economic bubbles.

Heck, if there is a gold coin selling less than another gold coin, and they both weigh the same, then i'll take the one that is selling 4% less, thank you very much.

LOL @ the gold bubble

LOL @ the gold bubble burst...

If anything truly changed it would be the market doing it and not the central bank. All any central bank can do is manipulate things for a little while.

4% decrease? That's nothing when you consider that gold is up something like 15% in the past 2-3 months.

All it seems is that they are trying to flood the market a bit in order to keep prices down. It might work for a while, but then will be back to the same once the market absorbs the new supply.

...

exactly...

I can see the PTB wanting to increase the supply of gold at this point. Bringing the market value of gold down by increasing supply helps mask devaluation of the currency. It's a good way to mess with a major indicator that people look at often. But you're right, it can't last.

I strongly suspect that Iran isn't the only one doing this, but perhaps they haven't figured out any good ways to hide what they're doing. I'd love to see HR 1207 shed some light on what the Fed has been doing in the gold market here.

Sam Marsh
Musician
http://www.myspace.com/screwthebastards

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