In the wake of a tense 12-day war with Israel in June, the Iranian public is urgently seeking financial security, turning overwhelmingly to portable stores of value like gold and silver. This rush is a direct hedge against rampant inflation, stringent international sanctions, and a rapidly depreciating national currency, the rial.
A Surge in Demand for 'Value-Preserving Assets'
Traders in Tehran's historic Grand Bazaar report that every fresh development—from talks of UN 'snapback' sanctions to renewed regional tensions—sends new waves of customers seeking safety for their savings. The assets of choice include US dollars, gold coins and bars, silver, diamonds, and cryptocurrencies, with equities also seeing some interest. For a population fearing another sudden outbreak of war, the portability of these assets is a critical concern, allowing wealth to be held and moved easily in a crisis.
Mansour, a 28-year-old gold merchant in the bazaar who asked to be identified only by his first name, stated he has witnessed unprecedented demand. "In the past two weeks I’ve sold 6 kilos of gold to ordinary people—a new experience for me," he revealed. "People are rushing to buy because they fear their savings will lose value." This sentiment is echoed by Behzad Rashvand, 57, who views gold as his sole protection against inflation. "Right now, I see gold as the best way to preserve value," he said. "Whenever I make money, I turn it into gold."
Sky-High Prices and Shifting Investment Trends
The data underscores this frantic activity. Over the summer, 1-gram, 18-karat gold bars traded at approximately 115 million rials, equivalent to around $100 given the rial's exchange rate of over 1 million to $1. On Saturday, the price of a single gold coin in Iran surpassed 1.2 billion rials for the first time in history. Silver has also become a popular entry point, with 100-gram bars offering a more accessible investment for middle-class families.
This trend is causing some to reconsider traditional investments. Fatemeh Parsa, a 47-year-old mother of two, now regrets using an inheritance to purchase a Tehran apartment. "With global gold prices rising, I sometimes wish I had bought gold instead—my assets would have grown much more than real estate," she lamented, now looking at silver for her children's future. The broader economic context is severe, with mass layoffs reported due to electricity issues, falling consumer demand, and sanctions. Amir Ramezani, a leading Tehran gold trader, notes that some affluent families are now selling valuables to maintain their lifestyles as incomes fail to keep pace.
Portability: A Lesson from History and Current Fears
The preference for portable wealth is deeply rooted in recent experience and national history. During the June war, tens of thousands of Tehran residents fled the capital for the countryside or the Caspian Sea coast, encountering overcrowded areas and cashless, non-functional ATMs. Many had only what savings they could physically carry. This mirrors actions taken during the Iran-Iraq war in the 1980s and the 1979 Islamic Revolution.
With the US cracking down on Iranian cryptocurrency sellers, gold and silver have gained further prominence. Meanwhile, wealthier investors are discreetly turning to diamonds and other gemstones. Ahmad, a 49-year-old fabric importer, is converting all his liquid assets. "I can’t convert my home or my car, but for the past two months I’ve been turning all my liquid assets into foreign currency and gold," he explained. "In an emergency, I need to be able to carry my assets with me if I have to leave." This stark reality defines the current economic mood in Iran, where glittering metals offer a fragile sense of security in deeply uncertain times.
