reading the other day that Russia might just trade oil for gold and the author said there were two different exchanges and that we couldn't really impose sanctions on them. I thought well that's interesting lets start digging around and see what we find.
Gold Trading: OTC vs. exchange
"OTC markets are characterised by market participants trading directly with each other. The two counterparties to a trade bilaterally agree a price and have obligations to settle the transaction (exchange of cash for gold) with each other. This form of principal-to-principal gold trading is typically less regulated than trading on an exchange and is how most of the market has functioned historically. Often cited advantages for the OTC model are that it provides market participants with a high degree of flexibility (i.e. to customise transactions) and enables large gold trades to be executed anonymously."
Then today driving into town on on NPR they said Saudi Arabia might start making oil transactions in the Chinese currency instead of the dollar.
Interesting.
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