These increasing stresses jeopardize the Iranian economy, where inflation is skyrocketing and the rial is in freefall. Consequently, more and more citizens are looking to gold to protect their inexpensive dollars. Behzad Rashvand and others see gold as the only way to shelter themselves from the growing tide of financial instability. This trend has been accelerating in recent months. These conversations, born out of the ongoing economic challenges facing people in our communities, led to a deeper exploration of portable wealth. Consequently, demand for gold and other precious metals has skyrocketed nationwide.
As a result, gold has cemented itself as the most trusted hedge against inflation, sanctions, and a depreciating currency for numerous Iranians. For Rashvand, turning his liquid assets into gold is just one of the steps he’s taking in response to these stormy winds. “Right now, I see gold as the best way to preserve value,” he states. He explains further that any time he has cash on hand, he immediately changes it into gold.
Fatemeh Parsa’s experience underlines how the conversation around investing continues to evolve in a time of economic uncertainty. She regrets using her inheritance to purchase an apartment in Tehran, expressing that “with global gold prices rising, I sometimes wish I had bought gold instead — my assets would have grown much more than real estate.” That regret is what’s driving the gold bug’s demand for this more stable candidate.
Ahmad’s concern for the ongoing crisis in Iran is enormous. He intends to sell his remaining stocks and convert all his holdings into hard currency. For the many like him who see gold not just as an asset class, but a physical insurance policy against systemic disruption, contingencies unlikely, but possible.
In the Iranian capital, Amir Ramezani casts his lens on increasing hunger for gold. He notes that even the wealthiest of families are beginning to liquidate pieces of their endowments just to survive this tough financial storm. Prices of gold coins have surged over 1.2 billion rials (around 26,700 USD using official exchange rates) for the first time since Iran’s establishment. Simultaneously, 1-gram, 18-karat gold bars are going for around 115 million rials, or about $100. 1-kilogram silver ingots are already approaching $2,000. At the same time, small 100-gram silver bars have made a great entry-level investment that has allowed middle-class families to gain access to the market.
The new focus on precious metals picked up steam during a mounting global pressure on Iranian cryptosellers. Jewelers in Iran’s two largest cities—Tehran and Mashhad—are experiencing an unprecedented demand for small-carat, investment-grade stones. This trend reflects a larger global shift towards more tangible assets, as investors grow increasingly wary of economic downturns.
For Mansour, a 28-year-old gold and jewelry merchant, there is no doubt at all — demand for gold has never been like this. “People are rushing to buy because they fear their savings will lose value,” he explains. Yet, his conjectures are consistent with historical patterns. The picture is similar today, as Iranians have historically gravitated toward gold as the ultimate hard asset whenever their economy has faced internal strife or external aggression, such as during the 1979 Islamic Revolution and the Iran-Iraq war.
As inflation escalates and the rial continues its decline, Behzad Rashvand’s perspective resonates with many: “Throughout history, gold has not only held its value but increased in worth. We should learn from history if we want to build a better life.” Yet time is running out for the regime, as Iran’s economy is rapidly destabilizing. Consequently, more citizens will again seek refuge in gold from market calamity and chaos.
