Now, Iran is navigating double- or triple-digit inflation and an uncertain economic future. Citizens are increasingly seeking refuge in gold for the preservation of their wealth. Behzad Rashvand, a local jeweler, said he has seen a recent uptick in the demand for gold. In only two weeks, he moved six kilos (13.2 pounds) to regular customers. This trend reflects a broader movement among Iranians who seek to protect their finances from the destructive effects of inflation and government policies.
The inflation rate in Iran has shot up to more than 40 percent a year. So, almost everyone is on the lookout for new places to invest. Rashvand fully engages in the practice of converting every penny he earns to gold. He thinks this change can’t happen soon enough and told us why he thinks it’s so crucial.
“Whenever I make money, I turn it into gold,” – Behzad Rashvand
These months saw gold coins in Iran hit an all-time record high. For the first time in their history, their price exceeded 1.2 billion rials. Economic sanctions and economic mismanagement are destroying the value of their national currency. Consequently, gold is emerging as the ultimate store of value. Despite this positive development, this transition echoes earlier crises. During the 1980s Iran-Iraq war, millions of people moved out of big cities, bringing the entirety of their wealth with them.
The extreme economic situation has driven many Iranians to fully cash out their assets. A 49-year-old fabric importer described his decision to convert his possessions into foreign currency and gold, emphasizing the necessity of being prepared for potential emergencies.
“In an emergency, I need to be able to carry my assets with me if I have to leave,” – 49-year-old fabric importer.
Additionally, as the Iranian economy has regressed, many Iranians have turned to cryptocurrency in an effort to evade inflation. The U.S. government has escalated its enforcement against Iranian crypto sellers, making this alternative much riskier for investors. This situation is telling of the struggles experienced by individuals within countries that have faced economic turmoil. For example, during the COVID lockdowns Indian citizens took advantage of gold savings, and today Turks are flocking to buy gold to shield themselves from their government’s relentless currency destruction.
Gold has always been a safe option to invest in, observed Hamid Safari, an Iranian citizen. He commented on his own actions to address inflationary pressures.
“Whenever I have enough money to save, I immediately convert it into gold. 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,” – Hamid Safari.
With inflation mounting as the crisis progresses, many Iranians are flocking to gold. They view it no longer simply as a luxury but indeed an essential economic lifeline to stave off mass economic desperation. The ongoing financial turmoil has led to a renewed focus on precious metals that can offer tangible security in uncertain times.
The implications of this trend are significant. People who invested heavily in real estate are now saying, if only we had started purchasing gold five years ago. Local investor Fatemeh Parsa said she was concerned about lost opportunities in the gold market. She contrasted these concerns with her substantial real estate holdings, illustrating the contrast.
“With global gold prices rising, I sometimes wish I had bought gold instead — my assets would have grown much more than real estate. Now, it seems that investing in silver could be valuable, especially for my children’s future,” – Fatemeh Parsa.
Here’s how the situation in Iran differs sharply from that in Western countries such as the United States. Citizens there are not experiencing the same level of economic devastation or hyperinflation. As many Iranians navigate these turbulent times by turning towards gold and other valuables, it highlights the desperate measures taken by individuals seeking stability amidst chaos.