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When it comes to financial security for Iran’s nervous public after the 12-day war israelAll that glitters is gold – and for many, it remains the most reliable hedge against inflation, sanctions and the weakening rial currency.
Traders in Tehran’s Grand Bazaar say about every new headline united nations “Snapback” sanctions, the decline of the rial or renewed regional tensions have prompted people to buy so-called “value-preserving assets”. These include dollars, gold, silver, diamonds, cryptocurrencies and to some extent equities.
The value that such portable assets could hold when local assets decline – and the ease with which they could be transported in case of a crisis – has been on the minds of Iranians for months as many fear the outbreak of another war with Israel.
Mansoor, a 28-year-old gold and jewelery trader in the market, said he had never seen such demand.
“In the last two weeks I have sold 6 kilos (13.2 pounds) of gold to ordinary people – this is a new experience for me,” said Mansour, who spoke on the condition that only his first name be used for fear of retribution.
“People are rushing to buy because they fear their savings will lose value,” he said.
Behzad Rashvand, a 57-year-old grandfather, said he sees gold as the only protection against rampant inflation in Iran.
“Right now, I consider gold to be the best way to preserve value,” he said. “Whenever I earn money, I turn it into gold.”
Gold sales increased in Iran’s capital
Over the summer, 1-gram, 18-karat gold bars traded at about 115 million riyals — about $100, as the riyal now trades at more than 1 million to the dollar. Gold coins were worth more than $1,000 and 1 kilogram silver ingots were worth about $2,000. On Saturday, the price of gold coins in Iran exceeded 1.2 billion riyals for the first time in the country’s history. Iranian media reports suggest that small 100-gram silver bars have become a new, entry-level investment for middle-class families.
Fatemeh Parsa, a 47-year-old mother of two, now regrets using her inheritance to buy an apartment tehranWhile real estate remains valuable in some areas of Tehran, bank loans and people’s savings have not kept pace with skyrocketing prices,
“With gold prices rising globally, I sometimes wish I had bought gold instead – my wealth would have grown much more from real estate,” she said. “Now, it seems like investing in silver could be valuable, especially for my children’s future.”
Reports of massive layoffs in Iran’s economy due to problems with power, consumer demand and sanctions have also been circulating for months. Amir Ramadani, a top Tehran gold trader, said some of the more affluent families have begun selling part of their assets to cope.
“Today their income does not match the life they have built,” Ramezani said. “To maintain the same lifestyle, many people are selling valuables – gold, jewellery.”
Gold and silver gained particular prominence as the US began cracking down on Iranian cryptosellers, a way for Iranians 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 retained its value but also increased in value. We must learn from history if we want to build a better life.”
With tensions high in the region, portability is also a concern
Meanwhile, wealthy investors are turning to diamonds and other gems as discreet, portable stores of value. Jewelers in Tehran and Mashhad report growing demand for smaller carat investment-grade stones – a niche traditionally favored by traders but now expanding to upper-middle class buyers.
Iran’s broader economy is under severe pressure due to international sanctions, which have cut investment and limited access to global finance. Years of sanctions have weakened domestic industries and left key sectors struggling to modernize. And for those who want to withdraw money from abroad, hard currency and jewelery are the only way to do so.
There is also another reason the Iranians are reluctant to discuss – being able to keep the money portable in the event of another war. Thousands of Iranians living in Tehran are believed to have fled the capital during the 12-day war, and headed for the Iranian countryside or the coast in the north. Caspian Sea,
When they did so, they found that some areas were overwhelmed with newcomers. atm Either out of cash or non-functional. Many people immediately brought whatever capital they could from their savings.
There is an example of this in Iranian history also. Many people fleeing cities during the Iran–Iraq War of the 1980s took whatever they could with them. And in the Islamic Revolution of 1979, those associated with the Shah and his government fled Iran with whatever they could carry. At the time, the riyal had hit a high of 120 to the dollar, causing a flood of currency-changing shops and people buying gold, jewellery, rugs and other assets abroad.
Ahmed, a 49-year-old textile importer, said he plans to sell his remaining stocks and convert all his assets into hard currency because of the situation in Iran.
“I can’t change my house or my car, but for the last two months I have been converting all my liquid assets into forex and gold,” he said. “In case of an emergency, I need to be able to take my possessions with me if I have to leave.”
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Gambrell reported from Dubai, United Arab Emirates.