“Iran is among the top ten world’s largest consumers of gold”, says Hojjat Shafaei, Head of Gold Manufacturers Association of Iran. “Producing each kilo of gold creates two jobs in the country. However, too much bureaucracy and instable trade regulations have made this industry among the low profit ones”.
Iran has several precious stones and gold mines over 21 provinces. The country’s definitive resources of gold are about 250 tones and their possible potentials can reach up to 340 tones. Currently, Iran extracts about eight tons of gold per year which places it as the world’s 43rd producer of gold.
In 2016, Iran was the world’s sixth largest consumer of gold. Over the past years, more people have bought gold as a way of investment. Therefore, they tend to buy non-elaborated golds. This trend has caused difficulties for gold manufacturers to survive.
“There are 10,000 registered gold manufacturers in Iran”, continues Mr Shafaei. “However, most of them are currently inactive. 90% of what is sold on the market is made two years ago”.
Last winter, following the rise of gold-coin prices, the Central Bank of Iran started to pre-sale gold-coins at lower prices to control the market. Many people rushed to buy gold-coins. Recent economic turmoil and high prices for gold are other factors for people spending less on elaborated-gold.