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Iran has enough gold to prevent a freeze

Iran reiterated its claims that the country has enough gold reserves and needs no more imports for the next ten years or so.

According to Central Bank of Iran it has changed 15 percent of its foreign exchange reserves into gold The bank had earlier said the value of gold has surged many folds as it bought gold at a price of $656 per ounce.

Analysts said to prevent a freeze of its foreign reserves Iran withdrew its deposits from foreign banks and allocated $13 billion of that reserves to buying gold and now that value of that gold has tripled.

Iran has imported 22 tons of gold worth over $855 million to boost its foreign exchange reserves estimayed at $100 billion.

Market observers believe Tehran has been one of the biggest buyers of bullion over the past decade after China, Russia and India, and is among the 20 largest holders of gold reserves.

They said the rise in import of raw gold, which is processed by experts of gold and jewelry industry, was enthusiastically received by gold-makers and also people active in foreign trade, as they believe that Iran can reach a favorable status by processing raw gold and re-exporting it.

Analysts said Iran’s gold industry requires a great deal of capital and people engaged in this industry are obliged to use large amounts of circulated capital to purchase raw gold in the form of ingots and this by itself increases the price of gold.

Iran’s official gold reserves are belived to be near 300 tons as the country doesn’t officially declared its assetts offlate. - bullionstreet.com

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Posted by on Nov 20 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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