Significant Increase in Demand for Gold Jewelry in Iran

The World Gold Council reported on Thursday a 27% increase in demand for gold jewelry in Iran. Demand for this type of product has remained stable globally and in the Middle East. In a report published on Thursday, April 14, on its official website, the World Gold Council stated that demand for gold jewelry in Iran from January to March increased by 27% compared to the first quarter of last year, 2016, reaching 12.9 tons. This is the highest level in the past four years. The report cited improvements in the economic situation, increased investment in gold and jewelry, and the lack of minting of Bahar Azadi coins by the Central Bank during this quarter as reasons for the increase in demand for gold jewelry in Iran. According to this report, demand for gold jewelry in Iran last year was 41 tons, which was a 10% increase compared to 2015. Demand for jewelry in Iran from 2010 to 2012 was about 41 to 45 tons annually, but after the sanctions in 2013, it surged to 63 tons. However, from 2014 to 2016, it remained around 40 tons. The report adds that demand for gold jewelry in the Middle East remained stable at 54.6 tons during the first quarter of the year, largely due to low oil prices and a decrease in the number of incoming tourists to the region. This index for the entire world saw a 1% increase, reaching about 481 tons. In Turkey, demand for gold jewelry even decreased by 7.7%, reaching the lowest level in four years. Overall, global demand for gold, jewelry, and bullion decreased by about 18% in the first quarter of 2017, reaching about 1,035 tons. According to this report, global gold production also decreased by 12% in the first quarter, reaching 1,032 tons. Details from the World Gold Council indicate that investment in gold bullion and coins globally increased by 9%. However, demand from central banks for gold to add to their reserves showed a significant decrease of 27%, reaching about 76.3 tons in the first quarter of 2017, the lowest level in six years.