Iran Doubles Down on Gold to Counter Threats by the Trump Administration
Iran has gone into overdrive in its efforts to import gold over the past months as it braces for additional hardships under the new Trump administration, which is promising a regime of “maximum pressure” for the Iranian government.
Over the past decade, Iran has increasingly looked to tap the safe haven appeal of gold to contain the ever-increasing economic storms it faces coupled with international sanctions due to its nuclear program and growing regional influence. In recent months, the country has ramped up its holdings of gold from the time President Pezeshkian took over the reins in the wake of the death of his predecessor in a helicopter accident.
According to Iran’s customs administration, the country had imported at least 81 tons of gold by Jan.19. This marked a 300% spike in bullion imports when compared to the amount imported by the same time last year. As for the volume of gold imported, the January figures depict a 234% increase in gold import tonnage.
Mohammad Farzin, the head of Iran’s central bank, disclosed back in December that at least 20% of the nation’s forex reserves had been converted into gold and boasted that Iran was among the top countries on the globe in terms of its gold to forex ratio.
The Iranian authorities haven’t disclosed the sources of their gold imports or the specific exports for which the payment in gold was obtained. Some reports suggest that Iran secured some gold after exporting suicide drones to Russia. However, the authorities have only admitted that they made some suicide drone exports to Russia before the war in Ukraine broke out.
It should be noted that the government isn’t the only section of Iranian society exhibiting a growing interest in gold. Even the nationals have been scrambling to get their hands on gold in the wake of the tumbling national currency. The authorities have also invested heavily in encouraging citizens to purchase gold.
However, critics of the government’s interest in gold say the policy is unlikely to fix the loss of confidence in the country’s currency. They argue that the challenges being faced stem from geopolitical and domestic economic challenges which need to be addressed before the purchases of gold can make any meaningful impact in the fortunes of the country.
Economists add that market players are all-too-aware of the actual reasons behind the shocks in the economy and won’t be moved by the government’s gold auctions.
As different factors continue to batter economic certainty in different jurisdictions, all eyes are likely to turn to gold and gold stocks like GEMXX Corp. (OTC: GEMZ) as investors attempt to hedge their holdings using this safe haven vehicle.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Iran has gone into overdrive in its efforts to import gold over the past months as it braces for additional hardships under the new Trump administration, which is promising a regime of “maximum pressure” for the Iranian government.
Over the past decade, Iran has increasingly looked to tap the safe haven appeal of gold to contain the ever-increasing economic storms it faces coupled with international sanctions due to its nuclear program and growing regional influence. In recent months, the country has ramped up its holdings of gold from the time President Pezeshkian took over the reins in the wake of the death of his predecessor in a helicopter accident.
According to Iran’s customs administration, the country had imported at least 81 tons of gold by Jan.19. This marked a 300% spike in bullion imports when compared to the amount imported by the same time last year. As for the volume of gold imported, the January figures depict a 234% increase in gold import tonnage.
Mohammad Farzin, the head of Iran’s central bank, disclosed back in December that at least 20% of the nation’s forex reserves had been converted into gold and boasted that Iran was among the top countries on the globe in terms of its gold to forex ratio.
The Iranian authorities haven’t disclosed the sources of their gold imports or the specific exports for which the payment in gold was obtained. Some reports suggest that Iran secured some gold after exporting suicide drones to Russia. However, the authorities have only admitted that they made some suicide drone exports to Russia before the war in Ukraine broke out.
It should be noted that the government isn’t the only section of Iranian society exhibiting a growing interest in gold. Even the nationals have been scrambling to get their hands on gold in the wake of the tumbling national currency. The authorities have also invested heavily in encouraging citizens to purchase gold.
However, critics of the government’s interest in gold say the policy is unlikely to fix the loss of confidence in the country’s currency. They argue that the challenges being faced stem from geopolitical and domestic economic challenges which need to be addressed before the purchases of gold can make any meaningful impact in the fortunes of the country.
Economists add that market players are all-too-aware of the actual reasons behind the shocks in the economy and won’t be moved by the government’s gold auctions.
As different factors continue to batter economic certainty in different jurisdictions, all eyes are likely to turn to gold and gold stocks like GEMXX Corp. (OTC: GEMZ) as investors attempt to hedge their holdings using this safe haven vehicle.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
