Gold sales spike in Iran’s capital
Over the summer, 1-gram, 18-karat gold bars traded at around 115 million rials — about $100 as the rial now trades at over 1 million to $1. Gold coins were over $1,000 and 1-kilogram silver ingots were nearly $2,000.
On Saturday, the price of a gold coin in Iran exceeded 1.2 billion rials for the first time in the country’s history. Small silver bars from 100 grams have become a new, entry-level investment for middle-class families, Iranian media reports suggest.
Fatemeh Parsa, a 47-year-old mother of two, now regrets using an inheritance to buy an apartment in Tehran. While real estate remains valuable in some Tehran neighborhoods, bank loans and people’s savings have not kept pace with sky-high prices.
“With global gold prices rising, I sometimes wish I had bought gold instead — my assets would have grown much more than real estate,” she said. “Now, it seems that investing in silver could be valuable, especially for my children’s future.”
Reports of mass layoffs in Iran’s economy, stemming from problems with electricity, consumer demand and sanctions, also have circulated for months. Amir Ramezani, a top gold trader in Tehran, said that some families from more well-to-do families have begun selling parts of their assets to cope.
“Their incomes today don’t match the lives they built,” Ramezani said. “To sustain the same lifestyle, many are selling valuables — gold, jewelry — just to keep up.”
Gold and silver particularly gained prominence as the US began cracking down on Iranian cryptosellers, which had been one avenue Iranians sought to secure their finances. “Whenever I have enough money to save, I immediately convert it into gold,” said Hamid Safari, who sells audio equipment.
“Throughout history, gold has not only held its value but also increased in worth. We should learn from history if we want to build a better life.”