Iranians Protect Savings By Stacking Gold Bars in 2018

We reported in 2018 how Iranians, especially property owners, were accepting and using gold as payments for rent, mortgages and other types of goods and services, so it’s really not surprising to see the demand for gold bars climb higher.

It’s the commodity which becomes a safe haven at times of economic crisis. Now, with the crash of the rial, Iranians are using gold for more everyday payments, most notably rent – but the resulting price hikes are starting to affect the demographics of Tehran itself.

The currency began to slump in December, when Washington flagged that it would withdraw from the 2015 nuclear deal.

That decline accelerated in May after US President Donald Trump made a formal announcement that the US was pulling out of the deal with world powers and reimposing economic sanctions on Iran. The Daily Coin

Give it another 2-3 years and we will see gold become part of the landscape in everyday use. Of course it won’t be discussed openly for a number of reasons, but just like we reported before it is happening and people are all too happy to accept and use gold as payment.

Middle East gold and bar-coin demand surged last year as Iranians hoarded bullion as a safe haven investment amidst the re-imposition of US sanctions and the economic mayhem that ensued, according to a report from the World Gold Council.

The region’s demand more than doubled to 87.1 tonnes from a year earlier, thanks to the quadrupling of purchases in Iran to 61.8 tonnes from 19.2 tonnes a year earlier, the trade body said on Thursday.

“The [Iranian] central bank’s decision to increase the number of coins it released into the market helped satisfy Iranian investor demand and boosted global coin demand,” said the report. “After an exceptionally strong third quarter, Iranian demand eased a little in the final quarter. The rial strengthened following the central bank’s intervention in the foreign exchange market, and authorities moved to limit gold speculation by closing the coin futures market.”

Iranians rushed to buy gold in 2018 to protect their savings after the Iranian rial plummeted 70 per cent against the US dollar amid high inflation and shortage of foreign currency in the run-up and after the US withdrew from a nuclear deal with Tehran. Source=

As the rial falls, Russia firms up gold acquisitions and beginning producing the cleanest food on the planet and never ending sanctions from the Western economies why wouldn’t the Iranian central bank stack more gold, push more gold into the economy and begin conducting more everyday business with gold? There is no stopping gold, nor any 3rd party risk, with using gold as currency.