Iran witnesses extreme collapse of gold coin price, currency rate

Business Materials 16 November 2018 12:29 (UTC +04:00)

Tehran, Iran, Nov.16


Iran has observed a 15-percent fall in the price of gold coins, Head of the specialized commission of gold and jewelry of Iran, Mohammad Kashtiaray told Trend.

"Gold coin was priced at 46,000,000 rials on the opening days of the week, today reaching 39,200,000 rials, and as for gold, it was sold for 4,250,000 rials per gram, and is now offered at 36,600,000 rials," he said.

The global downtrend in the price of gold and foreign exchange were two factors listed for the decline in prices of gold coins. Due to their simultaneous decrease, the prices in the market have sharply decreased.

"The market shock was expected upon the imposition of sanctions, however, CBI foreign exchange control policies resulted in diminished prices of forex and gold coin in the free market," Kashtiaray said.

"The price of gold in international markets has reached $1200 per ounce from the initial $1233, meaning that we have had a 2.5-percent drop in the price of gold in the global market," he added.

Kashtiaray said that a 15-percent drop in the price of gold coins was witnessed last week, and foreign exchange rate decreased by 8 percent in just one week.

Speaking of the "gold coin bubble", he pointed out that this bubble has been above 4,000,000 rials in the past few days, reducing to 3,000,000 as a result of low demand and price cuts.

“When prices decline, most people tend to sell rather than buy, and many individuals stop till the prices fall lower; that is why yesterday the market faced an indeterminate state,” Kashtiaray explained.

He added that the previous day, the demand for buying gold was low and the prices fell in the opening hours, decreasing the price of each coin by 1,000,000 rials.

He also said that the downtrend in prices has something to do with the Central Bank of Iran’s foreign exchange control policies.

On Nov.15, each Bahar Azadi gold coin was sold for 39,200,000 rials, each Half Bahar Azadi for 22,000,000 rials, each Quarter Bahar Azadi for 11 million rials, each one-gram coin for 6,600,000 rials, each mithqal for 15,600,000 rials, and each 18-carat gram of gold for 3,606,000 rials.