Iranian Families Flock To Gold Amid Economic Turmoil

In the heart of Tehran, gold dealers are seeing a different kind of customer these days. The bustling bazaars that once echoed with the laughter of newlyweds shopping for wedding jewelry now hum with a quieter, more desperate energy. The reason? Iran’s economy, battered by years of sanctions, inflation, and political turmoil, has left ordinary citizens scrambling to preserve what little wealth they have left. For many, gold has become more than a symbol of prosperity or tradition—it is now a lifeline in a world where the value of the national currency seems to evaporate overnight.

According to New Lines, the price of 18-karat gold in Iran has soared to astonishing heights. In 2016, shortly after a nuclear deal between the U.S. and Iran, a single gram cost just $26, about one-eighth of the country’s monthly minimum wage. Fast forward a decade, and that same gram now fetches $110, while the minimum wage has plummeted to just $80. The numbers tell a stark story: finished gold pieces, once accessible to many, have become unattainable luxuries, and what was a modest hedge against inflation is now a vital tool for survival.

The situation worsened after the brief but intense 12-day war between Israel and Iran in June 2025. Panic buying swept through the gold market, pushing it to the brink of collapse. The Iranian rial’s historic fall has steadily eroded the savings of millions, and with inflation over the past year never dipping below 30%—and often soaring above 35%—the sense of urgency is palpable. The Central Bank’s interest rates for deposits, ranging from 20% for one-year to 25% for three-year terms, simply can’t keep pace with inflation, making traditional savings accounts a losing proposition for most Iranians.

“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,” Faezeh, a young office worker in Tehran, told New Lines. “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 role in Iran stretches far beyond economics. It’s woven into the fabric of family life and tradition, central to celebrations and rituals. Yet, as prices skyrocket, families are forced to adapt. Many now rent jewelry for weddings, buy smaller or even silver pieces, or opt for “broken gold”—damaged jewelry sold at raw gold prices. A dealer from Tehran’s Jeyhoon neighborhood explained, “Many people are looking for broken gold. Broken gold means jewelry that’s bent or damaged and no longer usable, so it’s traded at the price of raw gold. People no longer even believe in buying used or secondhand gold; they want to buy broken gold directly.”

This scramble for gold is not just about financial prudence; it’s about survival. The stock market’s notorious volatility, with swings of 30% to 40% in a single day, has scared off small investors. Real estate and car prices have soared out of reach—a basic domestic car now costs $5,000, an impossible sum for families scraping by on minimum wage. As a result, gold and foreign currencies like the U.S. dollar and euro have become the last refuges for small-scale savers.

“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,” a gold dealer on Enghelab Street observed to New Lines.

The gold rush has spilled into the digital world as well. Online gold-selling platforms, once a niche market, have exploded in popularity in just a few years. These platforms allow Iranians to buy gold with even the smallest amounts of money, often keeping the gold in digital form as a credit. Despite repeated warnings from the Economic Crimes Police and Cyber Police about the risk of fraud, participation continues to grow. The fear of losing the purchasing power of the rial outweighs even the risk of being caught in a scam. “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,” Zahra, a housewife, explained.

But the rush to gold isn’t without its perils. Storing physical gold at home has made families targets for theft, and the psychological toll is mounting. Zari, a young nurse, shared her anxiety: “On top of that, I can’t leave the house unattended for even a minute. When I see how easily our neighbors’ homes have been broken into, I’m filled with dread that the same could happen to me, and everything I’ve worked for would vanish in an instant. This is what our youth has become. We once dreamed of doing great things. Now, those dreams have turned into stitching days to nights, patching seams with thread, and turning 300 milligrams into 400 so that we don’t fall behind in life.”

Amid this economic turmoil, Iran’s political climate has grown even more oppressive. According to The New York Times, the government has crushed recent protests with unprecedented force. Doctors who treated the injured have been arrested, beloved local businesses shuttered, and critical media silenced. Even mourning families have been forbidden from crying in public for loved ones lost during the crackdown. Rights groups estimate that up to 40,000 people have been detained since the protests began, many charged as “rioters” or “terrorists.” Televised confessions—often likely forced—have become common, and activists describe the crackdown as “collective punishment.”

“They want to traumatize a whole generation, so they won’t rise up again,” said Mahmood Amiry-Moghaddam, director of Iran Human Rights, as quoted by The New York Times. The scale of repression is described by rights groups as among the most sweeping in the history of the Islamic Republic.

Meanwhile, capital flight continues to drain the country’s resources. The Central Bank reported that more than $20 billion left Iran in the first nine months of 2023 alone. This exodus, coupled with the diversion of small-scale savings into unproductive assets like gold and foreign currency, threatens Iran’s ability to invest in infrastructure and national development.

In a nation shadowed by war, sanctions, and state repression, Iranians are left to patch together their financial security gram by gram. The gold tucked under pillows or hidden in drawers is more than a hedge against inflation—it is a testament to the resilience and ingenuity of a people determined to survive, even as the ground shifts beneath their feet.