Did Iraq Mysteriously Purchase Gold Bullion?

There is speculation amongst investors and some financial writers that late in October of this year, Iraq mysteriously purchased as much as 1.5 million ounces of gold. If that were true, Iraq acquired roughly $1.6 billion US in gold or approximately 1.874 trillion in Iraqi Dinar.

The question about such a huge purchase is, why would Iraq be buying that much gold? There is a line item in the Central Bank Of Iraq's report on Key Financial Indicators that indicates the purchase of gold and SDR's. They're adding this amount to an already large stash of 726 billion Dinars worth of gold. With gold coming in at $1210 an ounce at the time of this post, that would give Iraq a handsome $223 million in profit. But the bigger question is, what are they doing with that much gold?

The speculation is that they may be doing it to distance themselves from the ever unstable and at the present time, falling value of the dollar. We know that last year, Iraq wanted to switch all of its gold reserves held in Federal Reserve Banks in the United States from what is based on US dollars to Euros. However, the Fed wouldn't let them, more than likely because of the show of a perceived lack of confidence in the US dollar.

Isn't that funny, the US dollar is tanking because of the completely irresponsible spending by government leaders, both Democrat and Republican for decades and financial institutions in the United States, and they have the audacity to tell Iraq it can't do what it wants with its own money.

Another irony is that while the country of Iraq is still struggling to have some sort of a lasting peace and get rid of radicals it is trying financially to create more stability by investing in gold and we won't let them. What an arrogant policy the US has against a country trying to come to grips with stability.

Do we want Iraq to be stable financially or not. I wonder how much more gold Iraq will try to buy as the dollar slips further?