Gold Rush Sweeps Iran As Currency Collapses

In the bustling bazaars of Tehran, gold glimmers under fluorescent lights, not just as a symbol of wealth but as a lifeline for millions of Iranians grappling with a currency in free fall. Over the past decade, the price of gold in Iran has skyrocketed, transforming the precious metal from a traditional gift or savings hedge into a desperate means of survival amid economic turmoil and political repression.

Back in 2016, shortly after the signing of a nuclear deal between Iran and the United States, a single gram of 18-karat gold cost just $26—about one-eighth of the country’s monthly minimum wage, according to New Lines. Fast-forward to February 2026, and that same gram sells for $110, while the minimum wage has plummeted to a mere $80. For many, finished gold jewelry has become an unattainable luxury, and even the smallest pieces now serve as vital safety nets.

The surge in gold prices isn’t just a local phenomenon—global markets have seen records broken, too—but Iran’s gold rush is driven by unique forces. The Iranian rial is enduring a historic collapse, with inflation over the past year never dipping below 30%. Throughout 2025, inflation hovered above 35%, while bank deposit interest rates lagged behind, offering just 20% for one-year terms and up to 25% for longer deposits—about 5% shy of even the nominal inflation rate. This yawning gap has made traditional savings accounts a losing proposition for ordinary Iranians.

As a result, many are turning to gold as a psychological reprieve from the relentless erosion of their salaries. Faezeh, a young office worker in Tehran, shared her strategy: “I always set aside 30% of my salary for savings, and I usually use it to buy gold. I hoped that by saving this way, I could one day take a step forward in life and buy a car or a small apartment. The stress and anxiety of watching the money I get at the beginning of the month melt away by the end, with no purchasing power left, bothers me so much that I can’t wait to save enough for 1 or 2 grams of gold. That’s why, as soon as I get any money, I buy a small piece of gold, or even a gold pin. That way, I feel like I’ve saved a little, and if an unexpected expense comes up, I can count on it.”

Gold’s cultural significance in Iran runs deep. It’s woven into the fabric of family celebrations, from newborn gifts to wedding ceremonies. Traditionally, grooms are expected to purchase at least three pieces of gold jewelry for their brides, a ritual now nearly impossible for most families. Many have resorted to renting jewelry or substituting silver to maintain the symbolic gesture without breaking the bank. As one Tehran gold dealer put it, “These used to be newborn gifts, now everyone’s buying them.” The dealer described trays of pendants, each weighing just 300 to 600 milligrams, and noted the popularity of fractional gold coins, which offer a fixed price and are seen as more accessible investments.

Yet, the gold market’s boom has a darker side. The 12-day war between Israel and Iran in June 2025 triggered a wave of panic buying, pushing the fragile market to its limits. The fear of conflict, coupled with an unending standoff with the U.S. and Europe, has accelerated the rial’s collapse. Many Iranians now convert their money into gold as soon as they receive it, a phenomenon economists call “hot domestic money.” As one gold dealer on Enghelab Street explained, “Now that prices are rising by the hour, people are afraid they won’t be able to afford the same item tomorrow. So the moment they get money, they come and convert it into goods. And if that good is an investment, all the better. In fact, I should say that nowadays, everything is an investment, because even if you buy a rug, next year it’ll be worth more than what you paid for it.”

Other traditional avenues for small-scale investment have all but dried up. The cost of a domestically produced car has soared to $5,000, out of reach for most families. The real estate market is even less forgiving, with apartment prices vastly outpacing wages. The stock market’s notorious volatility—capable of swinging 30% to 40% overnight—has burned too many small investors. That leaves foreign currency and gold as the only viable options for those desperate to preserve their savings.

This desperation is visible in the country’s widening class divide. Many now seek out “broken gold”—damaged or bent jewelry traded at the price of raw gold—or buy tiny pieces weighing less than a gram. Even online gold-selling platforms have surged in popularity, despite repeated warnings from the Economic Crimes Police and the Cyber Police about fraud. These platforms allow users to invest any amount, keeping their gold as digital credit rather than physical metal. The fear of losing purchasing power outweighs even the risk of falling victim to a Ponzi scheme.

Zahra, a housewife buying a fractional gold coin, summed up the prevailing mindset: “I used to tell myself I should always keep some cash on hand in case the kids got sick, an unexpected guest arrived, or an emergency expense came up. But I don’t think that way anymore. I don’t keep any cash. As soon as I cover daily expenses, I convert the rest into gold. If we need to spend on something, we sell a piece of gold. At the beginning of summer, gold was $60 per gram. Then it went past $100 per gram, and now they say it’ll reach $120. If I had held cash, I would have lost the equivalent of 50 fractional gold coins by now. It’s the same story today. Some people say not to buy because prices will drop. I say, in this country, nothing has ever gotten cheaper.”

For Zari, a young nurse with two children, gold is not just an investment but a source of constant anxiety. “Back when the banks held coin auctions, I borrowed some money and bought coins. I made a good profit. Since then, I’ve been constantly preoccupied with gold prices. The stress of thinking that if I don’t buy now, I won’t be able to afford anything tomorrow never leaves me. Our rent has gone from $100 to $180 a month in just one year. We don’t earn enough to live comfortably. Don’t think we want anything extravagant; we haven’t taken a single trip since our two kids were born. We can’t even make it from the beginning to the end of the month. If we don’t buy these 300- or 500-milligram pieces, we’ll never be able to move forward.”

But the economic crisis isn’t the only hardship Iranians face. According to The New York Times, the government’s crackdown on protests has left a trail of repression. Doctors who treated injured protesters have been arrested en masse, beloved businesses shuttered, and critical media silenced. Even families mourning loved ones killed during the crackdown have been ordered not to cry in public. Rights groups estimate that up to 40,000 people have been detained, many charged as “rioters” or “terrorists,” with forced televised confessions commonplace. Mahmood Amiry-Moghaddam, director of Iran Human Rights, described the situation as “collective punishment,” adding, “They want to traumatize a whole generation, so they won’t rise up again.”

Capital flight from Iran exceeded $20 billion in the first nine months of 2023, and the outlook for economic recovery remains bleak. Since the war last summer, prospects for renewed negotiations with the U.S. have faded, and the reinstatement of U.N. sanctions late last year has only deepened public distrust. The exodus of large-scale capital abroad and the diversion of small savings into unproductive assets like gold and foreign currency threaten Iran’s ability to rebuild its infrastructure and invest in national development.

In the shadow of war and repression, ordinary Iranians continue to hide their wealth under their pillows, clinging to gold as both a shield against economic disaster and a fragile hope for a more secure future.