Sanctions push Iran’s Gold Bar and Coin demand to 5-1/2-year high in Q3
TEHRAN (Scrap Register): Recent positive momentum continued in Iran during the third quarter of this year. Iran’s Gold Bar and Coin demand hit 21.1 tons, the highest since Q2 2013, and accounted for three-quarters of the Middle East market, according to World Gold Council.
Renewed sanctions and the plummeting rial – with expectations for it to fall further – underpinned this flight to gold. VAT-free bars and coins were preferred over jewellery, which is subject to 9% tax.
The Middle East bar and coin market has continued its recent up trend, rising 144% year-on-year and 28% quarter-on-quarter. Gold Bar and Coin demand reached 27.8t, its highest level since Q2 2013, a period when demand spiked in response to a sharp fall in the gold price.
Bar and coin demand in Turkey reacted differently to the mix of financial insecurity and currency weakness.
As the Turkish lira gold price rose in August to a record high of TL273/g, investors liquidated some of their bar and coin holdings to book profits. Net new buying fell to 4.6t, a 69% drop on the same period last year.