TEHRAN(BullionStreet): Iranians continued to purchase gold from every available centers on fears about it's economy, particularly the risk of soaring inflation and a wobbly currency.
According to latest reports, one Azadi gold coin sold for 15.3 million rials at Iran's free market last Sunday, which is a new record.
Analysts said ever dipping rial, Iran's currency, forced even those people who already have coins in large numbers to buy again rather than cashing in for a profit.
Worries about the declining buying power of the rial and doubts over the currency’s stability are the main drivers behind the flight to gold.
They added that due to sanctions, Iranians have no choice but to invest in gold coins as they can't move their capital and invest in other countries.
Treasured as a store of value, Iran’s gold coins, minted over centuries, are also culturally important.
Produced by the Central Bank of Iran, a standard gold coin weighs 8.133 grams.It is also sold in smaller denominations of a half coin and a quarter coin.
Iranian economy has been hit by sanctions as the United States leads global pressure on Tehran over a nuclear programme many states say is aimed at building atomic weapons, a charge Iran denies.
Iranian authorities have repeatedly denied that sanctions are hurting the country, saying the economy is strong.
But many Iranians are worried that keeping their wealth in rials is a risk.
Source: http://www.bullionstreet.com/news/iranians-shun-own-currency-for-gold/3983
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