Financial Post | Business

Gold bugs may take heart from Iran’s decision to accept the metal as payment for its oil rather than dollars, but few in the bullion market believe Tehran’s customers will leap on the opportunity to do so.

Iran’s central bank governor said on Tuesday Tehran was willing to accept gold as payment for its oil as sanctions imposed by the United States and Europe hamper the country’s financial institutions and force its trading partners to seek alternative ways to settle transactions.

Gold, which has risen by some 13 percent so far this year to around $1,780.00 an ounce, is often bought as a last-resort alternative to fiat currencies, as a safe-haven against unpredictable stocks and bonds or as protection against rising inflation that can erode the value of any portfolio.

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