Iran’s gold market on the verge of collapse

Iran’s gold market on the verge of collapse
ID : N-5768 Date : 2019/06/10 - 12:44

(Persia Digest) – Price fluctuations on the gold market in Iran have led to stagnation to the extent that it is on the verge of collapse.

Currently, most gold buyers purchase coins and bullions for investment, profit, and speculation on the stock exchange. The number of real customers is very low.

A gold seller has told ISNA News: “Many gold manufacturers and producers are in recession and are making people redundant. Some of our factories have had no production since the beginning of this year, while they began work around 15 days after Nowruz, or a couple of weeks after that at the latest in previous years.”


Read more:

Rising meat prices close a quarter of Tehran restaurants

Reception halls in Tehran stand idle

Poll: Financial issues top the concerns of Tehranis


Another gold dealer remarked that high gold price fluctuations have led to stagnation on the market, adding: “People have no purchasing power and this has dropped to a tenth.”

He continued: “Most shops had 4 or 5 shop clerks, but they have been sacked now. Clerks with up to 30 years of experience are now unemployed. I had 6-7 clerks in my shop, but only work with two now.”


Read more:

Iran's Finance Minister: Economic growth not negative next year

Iran's economic growth in 2019 - Negative or positive?

Rising prices adds one million to slum populations in Iran


Bagher Maboudinejad, president of Mashhad’s Jewelry Union, also pointed to the fact that gold purchases have dropped and shops are facing a severe recession. He reiterated: “Over 70 percent of our manufacturers have closed down and the rest are working at minimum capacity. Most of our colleagues are closing shop because they are not making a profit.”

Maboudinejad added: “The gold market is on the verge of collapse. This is a market native to Iran which made us proud by employing thousands of people, and generated foreign currency through exports. It is now disappearing and there are no more signs of jobs and foreign currency.”

Click here for more economic news.

Follow us on Twitter

Comments

captcha Refresh

Rate this post

0 Users rated to this post

Related posts