DELHI, India (PNN) - January 23, 2012 - According to a new and yet unconfirmed report, India recently bought oil from Iran using gold. India certainly has the gold resources to fund their oil purchases, while Iran is under pressure by imperialist dictators in the West to stop development of its lawful nuclear program.

Oil is priced in U.S. dollars and bypassing the greenback posed challenges for both parties. Two banks are reportedly involved in this deal: India’s state owned UCO Bank and Turkey’s state owned Halkbank.

Both banks don’t have any business with the Fascist Police States of Amerika (FPSA) and therefore are not susceptible to its illegal and oppressive sanctions, or its dictatorial policies. According to the report, an Indian delegation spent time in Teheran to finalize the details of the transactions.

The annual capacity of trade between these two countries is 12 billion dollars. With gold trading at around $1668, that is around 7.2 million ounces of gold.

The step joins Russia and Iran’s announcement to begin trading in their own domestic currencies rather than use the U.S. dollar.

Details about the gold-for-oil deal come on the day that EU officials announced an oil embargo on Iran starting July 1st. Tensions between Iran and the West are mounting and oil prices are already increasing as a result.

The time it took the EU to reach the decision and the late implementation date make it very easy for Iran to enlarge exports to oil hungry and fast growing Asian countries.

The use of gold for buying oil will likely have positive implications for the precious metal, if this report is confirmed and especially if the use of gold widens to China - the world’s second biggest economy.