TEHRAN, Iran, October 13. The gold coin price bubble grows in Iran’s gold market, the chairman of Tehran Gold and Jewelry Union Ebrahim Mohammad Vali told Trend.
The rising demand for gold coins and low supply has caused a growing gold coin bubble in the Iran market, he said adding that the balance between supply and demand has diminished in the past three years.
The price bubble for small gold coins with lighter weights is more in demand by people with low purchasing power but the supply is less than demand, he noted.
The price of the gold coin is 149 million rials (about $3,547) and the price bubble is currently 12 million rials (about$285), Vali pointed out.
The rise of the US dollar exchange rate and uncertainty over the revival of the 2015 nuclear deal are some of the reasons that led to the increase in the gold price, although the slight increase in the global gold price has also affected Iran’s gold coin market, official indicated.
The official stressed that Iran’s gold market had more ease compared to the gold coin market. The price fluctuation is expected to ease and the market will be more stable.