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Markets Unimpressed by Gold Export Permission

Markets Unimpressed by Gold Export PermissionMarkets Unimpressed by Gold Export Permission

Central Bank of Iran’s recent decision to legalize gold exports will not impact prices since “gold prices fluctuate in tandem with global prices rather than the volume of our country’s gold resources”, said Mohammad Keshti-Aray, the president of Gold and Jewelry Union on Tuesday.

The Ministry of Industries, Mining and Trade on Monday announced that CBI has authorized the export of raw gold.

According to the official, the exported gold should be extracted from mines inside the country.

“Exporters are supposed to bring the revenues back to the country either as foreign exchange or standard gold bar,” Keshti-Aray was quoted as saying by IBENA.

Mohammad Vali, the head of Gold and Jewelry Producers’ Union, also said, “Our gold production volume is restricted, but the permission allows us to compete in international markets in the near future.”

Iran is producing 5 to 10 tons of raw gold every year, while the total amount of gold in circulation is around 300 tons in the country.

“Domestic mines account for a meager portion of the gold in circulation in Iran, which diminishes the impact of CBI’s decision on prices in the market,” Vali said.

Financialtribune.com