Gold Loses Glitter

Production and consumption of gold has declined by two thirds during the past five years as a result of consecutive price swings, said Mohammad Keshti Arai, head of Tehran Gold and Jewelry Union. “Gold prices started to rally ten years ago, attracting many investors. However, a successive drop in prices in recent years has disappointed investors,” he said as quoted by IRNA on Wednesday. Imposing value-added tax on gold products also had a negative effect on the market. The fall in consumption has lowered output levels, according to Keshti Arai. “In Tehran alone 750 businesses active in the gold market pulled down their shutters during the past two years. The number was 3,500 in the rest of the country,” he said.