Ummm... 1 oz of Gold in Iraq cost 255,000 IQD....?

[Ore]

http://www.kurdishglobe.net/display-article.html?id=8C8C8EC2AE005C83BBBAD05378189E57

Sunday, 01 May 2011, 07:44 GMT

Gold price jumps to a new record high

Two customers bargain for gold at the Erbil central market./ GLOBE PHOTO/Safin Hamed

The Kurdish Globe

Couples fear they can't afford to get married

The price of gold hit a new record; retail prices for 21-karat gold in Kurdistan reached 255,000 Iraqi dinars per ounce for the first time.

"Since February, the price of gold has increased by 27,000 dinars, which is an increase of 30 percent from 2010," said Muhammed Mokhles a gold seller in Erbil.

Two months ago, the price of 21-karat gold was 228,000 dinars, but a few days ago it reached 255,000 dinars.

Many shoppers browsed the window outside Mokhles' shop, but few dared to come inside. Those who came in left soon after hearing the price.

Mokhles explained that only brides are buying gold these days, because they have to buy it because of Kurdish wedding traditions. "Ordinary people come to sell their gold, not to buy." He explained that even brides buy less gold because of the price.

"Two years ago, brides were buying up to 50 ounces of gold for their wedding. Today, they buy less than 20 ounces."

Mokhles, who has been in the gold business for more than 20 years, believes the U.S. monetary policy is the reason for the gold price increases. He believes the U.S. intentionally decreased the price of dollar to make its exports seem cheaper than those sold in euros, which increased demand for U.S. goods and increased its exports.

Economists believe when the price of the dollar falls, people buy gold, rather than keeping their money in dollars. In the past month, the value of the U.S. dollar against six international currencies has decreased by 2.2 percent and at the same time, gold prices increased.

Some believe the economic crises in Europe caused people and banks to lose faith in currency, switching to gold, and causing an increase in the demand and consequently, the price of gold. Unrest in the Middle East and Africa has also affected this, leading to a rise in gold prices.

Jewelry dealers expect the dollar to fall further in coming months, which will keep gold prices high or rising. The price of gold in Kurdistan Region is influenced by changes in the international market; local factors do not play a significant part in the price of gold.

The rising price of gold worries various people in Kurdistan Region, particularly those planning to get married.

Many young people have registered their names with organizations that arrange the marriage of hundreds of couples in the same day and provide them the necessities of life. Because of the rising price of gold and the expense of setting up a home, many are unable to get married.

Kurdistan Region has announced its marriage loans are no longer restricted to government employees, and any citizen can apply. The loan cap was raised from 1 million to 5 million dinars, but because the 2011 budget has not been approved by Parliament yet, those loans are not currently available. Those hoping to wed will have to wait for the budget to pass.

What am I missing? That would be about $6k per million IQD Does the Kurdish region in Iraq have its own currency with a different value of the IQD? The news article clearly state "Iraqi DInars" though...

[Dalite]

Someone who is better versed in purity can correct this, but I believe the price of gold is based on a purity of 24 carat.

I don't know what the difference in base value of 21 vs 24 carat would be.

There are also premiums paid over spot when a rate is locked in.

[Ore]

Someone who is better versed in purity can correct this, but I believe the price of gold is based on a purity of 24 carat.

I don't know what the difference in base value of 21 vs 24 carat would be.

There are also premiums paid over spot when a rate is locked in.

I, for one, am extremely familiar with it. 21k gold is worth 12.5% less than 24k gold. At todays ounce price, that would only be $193.75 less for 21k Vs 24k gold; virtually irrelevant in physical labored gold sale price.... For example, 20% premium is usually added to the gold spot price for gold jewelery in the middle east... ($1356.25 spot price of 21k gold oz + 20%= $1,627.50 or $1550 spot price of 24k gold oz + 20% = $1860; for gold jewelery...)

[Doctor Smith]

Maybe I should trade my Dinar for Gold in Kurdistan. 255,000 Dinar equals only 218.25 USD. Or the article isn't accurate.

[wicked93gs]

Gold is cheaper here in kuwait too....I might have done a bit of trading if I knew what hoops I would have to jump through taking it back

[detroitjazzman]

Gold is cheaper here in kuwait too....I might have done a bit of trading if I knew what hoops I would have to jump through taking it back

you can find the answers to your question follow the provided link. Good luck Jazz

http://fedex.com/us/international/irc/profiles/irc_kw_profile.html?gtmcc=us#C10a

[Ore]

Gold is cheaper here in kuwait too....I might have done a bit of trading if I knew what hoops I would have to jump through taking it back

The price of gold is determined through trading in the gold and derivatives markets, such as the London Fix. The Buy/Sell (Bid/Ask) prices are the same around the world at any given time, like any other precious or industrial metals, as well as oil. Because of that, I dont believe gold is cheaper in Kuwait. An Oz of 24k gold in Kuwait is at 425.82 KWD, which equals $1550 USD. By that reasoning, if 255,000 IQD buys and ounce of 21k gold in Iraq, 255,000 IQD would be worth $1356.25 instead of the $218.25 USD we all know...

Somebody debunk this, or I'm cashing out

[phazedoubt]

Don't know what this means, but according to the site below, the price of gold in Iraq has not been that in recent months...

http://www.goldpricedata.com/en/goldrateslocal.php?tocurrency=IQD

Edited May 3, 2011 by phazedoubt

[Ore]

Don't know what this means, but according to the site below, the price of gold in Iraq has never been that...

http://www.goldpricedata.com/en/goldrateslocal.php?tocurrency=IQD

Thanks, thats exactly what I expected at the 1170 IQD exchange rate. Weird how a news agency can mess this up, huh? At first, I thought they may be confusing the currency for another, but there is not 1 currency in the middle east has the value to buy 1 oz of gold at or around 255,000 units....

[phazedoubt]

Yeah, but if it were some sort of in country "buy at the Bazaar" type deal, my dinar and i would be on the first thing flying to the Ebril central market!

[redbaron]

Here is a chart I found on wiki, It looks pretty legit.

Measure

As a measure of purity, one carat is 24 times the purity by mass:

where

X is the carat rating of the material,

Mg is the mass of pure gold or platinum in the material, and

Mm is the total mass of the material.

Therefore 24-carat gold is fine (99.9% Au w/w), 18-carat gold is 75% gold, 12-carat gold is 50% gold, and so forth.

Historically, in England the carat was divisible into four grains, and the grain was divisible into four quarts. For example, a gold alloy of fineness (that is, 99.2% purity) could have been described as being 23-carat, 3-grain, 1-quart gold.

The carat system is increasingly being complemented or superseded by the millesimal fineness system in which the purity of precious metals is denoted by parts per thousand of pure metal in the alloy.

The most common carats used for gold in bullion, jewelry making and by goldsmiths are:

24 carat (millesimal fineness 999 or higher)

22 carat (millesimal fineness 916)

21 carat (millesimal fineness 875)

20 carat (millesimal fineness 833)

18 carat (millesimal fineness 750)

15 carat (millesimal fineness 625)

14 carat (millesimal fineness 585)

10 carat (millesimal fineness 417)

9 carat (millesimal fineness 375)

8 carat (millesimal fineness 333)

1 carat (millesimal fineness 042)

So, 21 carat is about .875 fine which is not nearly as pure as .999 which is 24 carat. Just saying.

Here is the link

Here is another LINK that had some good measurement information

Have fun and GO RV.

[TFK]

The price of gold is determined through trading in the gold and derivatives markets, such as the London Fix. The Buy/Sell (Bid/Ask) prices are the same around the world at any given time, like any other precious or industrial metals, as well as oil. Because of that, I dont believe gold is cheaper in Kuwait. An Oz of 24k gold in Kuwait is at 425.82 KWD, which equals $1550 USD. By that reasoning, if 255,000 IQD buys and ounce of 21k gold in Iraq, 255,000 IQD would be worth $1356.25 instead of the $218.25 USD we all know...

Somebody debunk this, or I'm cashing out

Have you decided to cash out. I saw your Dinars for sale. I've got plenty myself so I'm just funn'in with ya!

[wesamshah]

I have checked the price of gold in Iraq in a couple of other sites and all give the same result as this site:

http://www.goldpricecalc.com/gold-price-in-iraq.htm

http://www.goldpricesworld.com/gold-prices/arabia/iraq/

[RichNick123]

You realize this means the dinar is worth 6,078.00 per million if 255,000 buys a 1550.00 ounce of gold? Has there been a change in country or is this a mistake? At the current 1170 rate it should take 1.8 million dinar to buy an ounce of gold at 1550.00 an ounce? HELP?

[tilak]

Someone who is better versed in purity can correct this, but I believe the price of gold is based on a purity of 24 carat.

I don't know what the difference in base value of 21 vs 24 carat would be.

There are also premiums paid over spot when a rate is locked in.

Not much in this regard however it does make a small difference...ie a pure ounce of gold would 1600 put 21K would be 1500...not much difference and these number are approximates.