"I can assure you that we are looking very, very carefully at any evidence that anyone outside Iran is selling gold to Iran," he said.
The remark came after Rep. Edward R. Royce, California Republican and the US Foreign Affairs Committee's chairman, asked whether the administration was aware of recent reports indicating an uptick in the flow of gold into Iran.
"With its currency now in free fall, the Iranians desperately need gold," said Mr. Royce, who noted that a U.S. law authorizing the Obama administration to sanction anyone selling gold to citizens inside Iran does not take effect until July 1.
With existing U.S. law only allowing sanctions on the sale of gold directly to the Iranian government, Mr. Cohen told lawmakers the administration is keeping a close eye on the situation.
While Mr. Cohen acknowledged that U.S. authorities have "no question that there is gold going from Turkey to Iran," he said that "in large measure what we're seeing is private Iranian citizens buying gold as a protection to the falling value" of Iran's currency, the rial.
In scenes reminiscent of the Japanese Unit 731 the CNBC puppets have been rallied to jump on what they to perceive is the corpse of Gold. Of course they give scant attention to the fact that the cost of mining gold is on average $1200/oz and increasing as grades decline and energy costs increase or the record demand from Asia, the Middle East and Australia.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert
behold the Sacred Dow, worshipped by economists and analysts around the
world and to which whole economies and jobs have been sacrificed to keep
it rising. They compare the Japanese bond market to Fukushima. Markets
have become so distorted by manipulation, they argue that like godzilla,
one day the market will go where it needs to go and it will smash down
buildings and economies with it.
In the second half, Max talks to John
Butler of Amphora about confusing price signals caused by market
manipulating central bankers and the misallocation of capital this
encourages. They also talk about Japan's economy, Krugman's bond
allegations and Mrs. Watanabe's gold shopping spree.