Iranians Turn to Gold Amid Economic and Geopolitical Turmoil

Amid rampant inflation, crippling sanctions, and soaring geopolitical tensions, Iranians have increasingly turned to gold as their go‑to asset for preserving savings and conducting trade.

Local gold prices have rocketed more than 80% in rial terms over the past year-climbing from approximately IRR 401 million to IRR 735 million per gold coin-outpacing global gold price growth of around 45%. In the financial year ending late March, Tehran recorded 100 tonnes of gold imports-valued at roughly $8 billion-though analysts suspect the true figure may be closer to double that amount.

See also - Iran drastically increases gold imports

Key Drivers Behind the Surge

2. Circumventing SanctionsWith access to global banking networks sharply limited by U.S. and EU sanctions, gold offers a discreet and liquid conduit for international transactions. Authorities have at times facilitated bullion imports by exempting them from tariffs.

3. National Reserves and Financial StrategySources indicate that the Central Bank of Iran has quietly amassed record gold reserves-possibly its largest ever—as a shield against external financial pressure. Majidreza Hariri of the Iran‑China Chamber of Commerce described gold as an “economic weapon”:

“If other countries run their economies like conventional armies, we operate like guerrillas... today it might be gold, tomorrow [cryptocurrency].”

Consequences for Iranians and Global Markets

• Volatile investments:Some individual savers have lost out amid rapid price swings-like a Tehran resident who purchased on the rise and later sold at a loss amid brief market dips.

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