Despite recent increase in global gold price, some experts in Tehran believe it is unlikely for Iranians to shift back towards investing on the yellow metal as they did a few years ago, simply because they have gained no significant interest out of investment on gold.
Gold prices have been constantly experiencing a downward trend after the collapse of the 2011 bubble in the domestic gold market, now the price of gold coin is near the cost of production.
Following the global trend, gold market in Iran witnessed significant fluctuations in the past Iranian week (Oct. 4-10). The full gold coin of Bahar Azadi was sold at 9,280,000 rials on Monday in Tehran, hitting the lowest price of the week but rebounded later reaching 9,355,000 rials on Tuesday and then increasing to 9,410,000 rials on Wednesday. The upward trend continued until the last day of the Iranian working day, Thursday, when the market closed at 9,450,000 rials per full gold coin.
This week (Oct. 11-15), however, did not see major changes in prices. For three successive days, full gold coin was sold at 9,390,000 rials, until Tuesday when the price started to increase slightly by 10,000 rials. On Wednesday, prices dipped a bit when the full gold coin was sold at 9,380,000 rials.
“The Iranian market is not directly making decision on gold price, it’s a follower of the global market, which has experienced frequent fluctuations, sometimes up to 10 times a day,” Mohammad Keshti-Aray, chairman of the national Jewelry and Gold Union has said, as reported Akhbar Bank news portal.
His comments came after speculations that gold trade would slow down as Arabic months of Moharram and Safar are approaching.
Although gold trade would plunge during the months, the prices will not necessarily register decline, he said.
POS Fees and Jewelry Market
In response to a question raised on the controversial ‘point-of-sales’ decision by the central bank, Keshti-Aray said he believes the decision to impose charges on POS holders will not cause any changes on the jewelers’ habit of using these devices as security is of paramount importance to them.
The Central Bank of Iran is currently reviewing its original decision to impose new fees on POS terminal holders after it provoked objections from both shopkeepers and customers.
Experts appear to have totally differing opinions on the matter, with some believing that the fees are necessary, simply because you can never use a service for free, while others believe that the fees are unfair. Opponents are concerned that the decision will lead people to turn into traditional ways of buying, and again carry physical currency with them while shopping to avoid additional costs.
