The United States government is to rigorously enforce a ban on gold sales to Iran from July 1. They are planning to block sales of gold to Iranians in order to undermine the Iranian currency, the rial, and to step up pressure on Tehran over its nuclear program.
If proof that gold is money was ever needed then this is it. Four countries, each with significant financial problems caused by the spend-easy qualities that come with fiat money, see their citizens turning to gold.
Since the beginning of 2012, the Iranian rial has been devalued against the US dollar by over 80%. However, last week saw the devaluation gain pace dramatically with the currency falling by 18% on Monday and 9% on Tuesday.
Diplomatic relations between Iran and the West regarding the country's determination to enrich uranium have been contentious for some time. However, current rhetoric and policies such as banning Iranian oil imports have upped the ante.