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Iran's Gold and Jewelry Union talks gold, gold coin prices on local market

Business Materials 6 July 2020 10:23
Iran's Gold and Jewelry Union talks gold, gold coin prices on local market

TEHRAN, Iran, July 6

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Rise of demand for gold and gold coin in Iran affected the market, head of Iran Gold and Jewelry Union Mohammad Mohammadvali told Trend.

"The increase of demand for gold coins and second hand gold is one of the causes of the sudden rise of prices," he said.

"The other reason is foreign currency fluctuation and increase of foreign currency rate," he added.

"The price of Bahar Azadi gold coin is currently traded for more than 100 million rials (about $2,380), while the price of old minted Bahar Azadi gold coin is 930 million rial (about $2,214). The price gap indicates the growing bubble that would pass when the market resumes back to normal," he said.

"Both types of gold coins have the same quality, the only difference is the time of minting. The weight, color and carat are the same, but the rise of demand for new minted gold coin has increased the prices in the market," he added.

Bahar Azadi gold coin was minted after the Islamic revolution in 1979. Currently, two types of gold coins are being sold at the market in Iran - old Bahar Azadi coins (minted from 1979 to 1991) and the new ones (being minted since 1991).

Mohammadvali expressed hope that the market would calm down eventually.

"There is hardly any trade for gold because of the increased prices," he added.

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