It's not the first time crack slingers have found themselves nodding in vigorous agreement with David Einhorn (9 out of 10 polled by Dealbreaker last year thought Erin Callan was out of her element and the one we spoke with yesterday claims to have been mounting an attack on Moody's "for months now"). Surely it goes without saying it won't be the last.
In a report entitled US Gold, Going, or Completely Gone? Rob Kirby, forensic analyst at Kirby Analytics, says almost 3,000 metric tonnes of gold compounds were exported from the US in 2008."Paul Mylchreest, of the Thunder Road Report, notes that a "very suspicious" 174 tonnes of gold compounds were exported to the Dominican Republican - "that well known hub of the world gold trade".
"Maybe these gold compounds really are used in gold paint and that artist who normally puts colourful tarpaulins around islands and buildings has painted the whole of the Dominican Republic gold," Mylchreest ponders. "I'll go and check Google Earth."
But, he reckons the transformation of the Dominican Republic into a key staging post in the cocaine trade between South America and the US, is a far more likely.
"Wouldn't it be interesting if drug smugglers have seen the writing on the wall for the paper dollar and will now only accept payment in gold bullion?"
Dealing Gold In The Dominican Republic [Telegraph via Clusterstock]
Posted by guest , Jun 02, 2009 10:46AM
Will this bring pirates to the Caribbean?
Posted by guest , Jun 02, 2009 10:51AM
Why is he always smirking like that? Does he know something we don't?
Posted by guest , Jun 02, 2009 10:56AM
@2- ya think?
Posted by guest , Jun 02, 2009 10:57AM
thank god, I'm low on cash and thought I was going to have suck some dick.
Posted by EvilBuzzard , Jun 02, 2009 11:07AM
One commodity for another. We've devolved back to the barter system.
Posted by guest , Jun 02, 2009 11:09AM
Jeff Macke gunna he bitch man slap that smirk right off his face.
Posted by EvilBuzzard , Jun 02, 2009 11:10AM
@2 - He forgot the Fundamental Rule of Scarface. "Don't get high on your own supply!"
Posted by guest , Jun 02, 2009 11:17AM
I've known about this for a while.
-- Jeff Macke
Posted by guest , Jun 02, 2009 11:21AM
Drug dealers care more about traceability and ease of laundering than they do currency stability.
Posted by guest , Jun 02, 2009 11:23AM
Damn you Lady GaGa and your infectious grooves. Can't I go one day without getting your songs stuck in my head?
Manalyst
Posted by guest , Jun 02, 2009 11:53AM
EUR has replaced USD as the currency of choice for drug deals becasue it is easier to transport.
The US Treas says that USD1Mm weighs about 22lbs in $100 bills. Assuming that a EUR 500 note weighs about the same and using today's EURUSD rate of about 1.4280, the equivalent value in EUR would weigh about 3.1 lbs. @ EURUSD 1.60 the weight would be 2.75 lbs.
While gold can be used as a unit of account and is a good store of value due to its finite supply and extreme difficulty in extraction it is a poor medium of exchange due to its weight and ease of detection.
Posted by MoneyBoss , Jun 02, 2009 1:52PM
What's a "Dominican Republican"? Is that like 2009 Big Papi, full of smiles, but batting .195?