Gold holds a central place in the lives of Iranians as a deeply rooted traditional asset, so much so that the recent sharp rise in its price has impacted broad segments of society, even more severely than the fluctuations of the Tehran Stock Exchange itself. With the escalation of anti-government protests, gold prices in Iran have transformed into a direct gauge of the country's political state.
Fueled by anger over economic conditions, demonstrators have taken to the streets in the majority of Iranian provinces, while the pace of protests and violent confrontations shows no signs of receding.
Gold as "Social Security"
In Iranian culture, gold has long played a role akin to "social security," particularly for housewives. It grants them a rare degree of independence, whether through small savings set aside from household budgets or through the Mahr (dowry) that the groom is obligated to pay the bride, serving as a financial guarantee in the event of divorce. The groom's purchase of luxurious gold jewelry for his bride remains one of the largest expenditure items in Iranian wedding rituals.
Although gold is considered a safe haven for investors worldwide, in Iran, it constitutes the cornerstone of long-term family planning. It is viewed as the primary tool for hedging against financial crises or saving for a future home purchase. This is driven by cultural factors, in addition to the instability of the local currency, the Rial.
The Great Collapse: Losing 94% of Purchasing Power
In recent years, the collapse of the Rial against the Dollar and the outbreak of hyperinflation waves have completely altered the economic landscape.
Official data from the Central Bank of Iran indicates that the economy recorded an average annual inflation rate of 43% over the past eight years. Cumulatively, this means the average prices of goods and services have jumped by more than 17 times, effectively eroding about 94% of the population's purchasing power.
The numbers are shocking. On January 6, 2018, the dollar exchange rate in Tehran's free market was 42,990 Rials. By January 6, 2026, it reached 1,470,000 Rials, an increase of 3,319%.
In Iran, there is an "artificial" official exchange rate and a higher rate in the free market. Following the reimposition of US sanctions in 2018, the state set a subsidized rate for essential imports, but it has largely become accessible only to those close to power, not the general public.
The Rise of Two "Engines" Simultaneously
From 2018 to 2026, the global price of gold rose by approximately 230%. However, the price of a gram of 18-karat gold—the most common in Iran—jumped from 1,387,000 Rials to 160,550,000 Rials, a massive increase of 11,475%, meaning the price multiplied more than 115 times.
Had the global price of gold remained constant, gold in Iran would have risen "only" by the extent of the dollar's rise. However, the global increase in gold prices compounded the severity of the economic shock.
The human impact of this equation is extremely harsh. Eight years ago, a worker earning the minimum wage (about 10 million Rials) could buy more than 6.8 grams of 18-karat gold. Today, in 2026, despite the minimum wage increasing tenfold to 100 million Rials, the worker can purchase no more than 0.6 grams.
From Ornament to "Economic Weapon"
Experts believe that gold prices outstripping wage growth so violently has stripped gold of its role as a traditional investment tool or hedging method for the middle class, making its acquisition a desperate attempt to avoid falling into extreme poverty.
This shift is evident in market behavior. Iranians, who used to buy gold as jewelry combining adornment with savings, are now unable to afford high craftsmanship fees (making charges). Instead, they have turned to used gold, scrap gold, and small bars weighing one gram. The spread of "buying on installments" also indicates that gold has moved from being a cultural luxury to an "economic weapon." What was once a bride's dowry or a savings fund for a child's education has today become the last line of defense in the battle for survival.
A Global Paradox
According to the World Gold Council, Iran ranked fifth globally in terms of gold consumption during the first nine months of 2025, following China, India, the United States, and Turkey.
These figures reveal a striking paradox. World Bank data shows that GDP per capita in Iran was about $5,190 in 2024, placing it in the lower-middle-income bracket, ranking 119th out of 197 countries. Yet, Iran is a major power in the global gold market.
This discrepancy proves that Iranians allocate a much larger percentage of their income to buying gold compared to citizens of stable economies like Germany or the UAE. In a healthy economy, surpluses go to stocks, bonds, or banks. In Iran, gold is the only trusted haven.
A "Final Vote of No Confidence"
The massive gap between Iran's 119th rank in per capita income and its 5th place ranking in global gold demand is not just a statistic. For a protester on the streets of Tehran or Isfahan, the price of 160 million Rials for a single gram of gold is a testament to a dysfunctional economic system.
This rush toward gold serves as a "final vote of no confidence" in the government's economic policies. At a time when state media urges citizens to invest in the stock market or deposit their savings in banks, the long lines in front of gold shops and exchange bureaus reveal a completely different story, headlined by a deep loss of trust—which has become one of the most significant fuels for street protests.
The Price of Fear
Since the outbreak of protests in several Iranian cities in late December, the price of a gram of 18-karat gold has risen by about 14%. Market dealers attribute this disproportionate jump to what they describe as a "panic bubble."
With fears of escalating protests and further economic collapse, Iranians are rushing to convert whatever Rials they have into gold, due to its high liquidity and ease of transport during crises.
But this rush has created a new paradox: the asset supposed to provide financial security is now imposing an additional burden of physical security, as families find themselves facing increasing risks to protect their gold savings in an environment characterized by escalating turmoil and instability.
Follow the latest news on Google News
