The World Gold Council reported on Thursday, August 2, that since the U.S. withdrawal from the JCPOA, demand for gold coins and bars in Iran has doubled. The United States exited the JCPOA on May 8 of this year, and President Donald Trump announced the re-imposition of sanctions on Iran. According to the World Gold Council, following the U.S. exit from the JCPOA, the significant decline in the value of the national currency and economic instability have led to a doubling of demand for gold coins and bars in Iran during the second quarter of this year, reaching 15.2 tons, which is unprecedented since the first quarter of 2014. This statistic comes at a time when global demand for gold bars and coins has remained stable over the past years. According to the report, in the second quarter of this year, this figure was about 248 tons, and for the first half of the year, it was 509 tons. The World Gold Council's statistics indicate that, contrary to gold bars and coins, jewelry purchases in Iran have faced a significant decline, indicating a decrease in the purchasing power of the general public. The report states that overall in the Middle East, affected by economic problems, people have reduced their jewelry purchases, with Iran experiencing the most significant decline in jewelry purchases among these countries. Jewelry purchases by Iranians in the second quarter of this year saw a 35% drop, reaching 6.6 tons, the lowest level in the history of this organization's data collection. In the second quarter of this year, global gold demand was 964 tons and 300 kilograms. The surge in the value of the dollar above 10,000 tomans in recent days has sparked a wave of concerns about the decline in the value of people's assets and rising inflation. The value of Bahar Azadi coins has also been breaking records continuously over the past weeks and is now nearing four million tomans. In this context, severe fluctuations in the Iranian coin market have been noted, with Khamenei stating that violators at any level should be dealt with. The dollar at '12,000 tomans' coincides with a security atmosphere around the Tehran market. Iranian officials have attributed the currency and gold crisis to 'intelligence services' and 'dirty hands.' Currency fluctuations have caused '12,000 trucks to be stranded.' Speculations are ongoing regarding a new currency package from the Central Bank and the dollar rate.
World Gold Council: Iranians Purchased 15 Tons of Gold Coins and Bars in Three Months
The World Gold Council reported a significant increase in gold purchases by Iranians, doubling to 15.2 tons in three months due to economic instability and the devaluation of the national currency following the U.S. withdrawal from the JCPOA. In contrast, jewelry purchases have plummeted by 35%, indicating a decline in public purchasing power amidst rising inflation and currency fluctuations.
👥 Key Players
📰 What Happened
Iranians have significantly increased their purchases of gold coins and bars, reaching 15.2 tons in three months, due to economic instability following the U.S. withdrawal from the JCPOA. Meanwhile, jewelry purchases have dropped by 35%, indicating reduced purchasing power.
- Gold coin and bar purchases in Iran doubled to 15.2 tons in the second quarter of the year.
- Jewelry purchases in Iran fell by 35% during the same period.
💡 Why It Matters
📚 Background
The U.S. withdrawal from the JCPOA in May 2018 led to the re-imposition of sanctions on Iran, causing economic turmoil and currency devaluation.
🏷️ Entities Mentioned
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