One morning, at the maze of Tehran markets, salesmen were investing hot investments in shoppers. “Your money is dead,” he said of the country’s troubled currency, Riyal. “Buy gold.”
Over the past year, local prices of Iranian gold have exceeded the global surge as businesses buy metals to impose sanctions, while ordinary Iranians invest in threats of military confrontation with the United States and Israel to protect their savings.
The country's gold coin price has risen by more than 80% over the past 12 months from IR401MN to IR735MN (about $900). By comparison, global benchmarks grew by 45% during the same period.
Some analysts worry that as the country's economy becomes increasingly dependent on metals, a dangerous bubble has formed, some Iranians have lost money after nuclear talks with the United States begin and hope to create hope for relief from sanctions - corrected from a high point of local records.
But as gold bars enjoy historic rally around the world, demand from Iran (the world's fifth largest consumer of gold bars and coin) has increased the global market additionally.
Iran imported a record 100 tons of gold worth about $8 billion, according to government data, until late March, when the country's fiscal year ended. The actual number may be doubled, which is twice the number, from nearby markets such as the United Arab Emirates and Türkiye, analysts said.
Iran - Majidreza Hariri, head of the Chinese Chamber of Commerce, compared gold to a weapon Iran can use to defend its economy. “If other countries operate their economies like regular military forces, we will operate like guerrillas,” he said. “Today could be gold, tomorrow (cryptocurrency) tethers, etc.”
Analysts also believe that the Iranian central bank has established considerable gold reserves (probably larger than ever) to prevent future sanctions. The bank declined to comment on the matter.
"No one in the world can stop Iran from importing gold," said an economist who asked not to be named. "The global gold market is opaque. Gold takes up very little space, with most of it reaching neighboring countries."
Until recently, the government actively encouraged non-oil exporters to avoid banking restrictions by accepting payments in gold bars.
However, authorities appear to have quietly stopped supporting this in recent months, with priceless gold imports reportedly suspending, despite no explanation for the reasons.
Extreme fluctuations have also hurt some savers. The price of gold coins briefly soared by $1.1 billion in late March, before negotiations with the United States began.
Fatemeh, a 24-year-old housekeeper from Tehran, bought 16 grams of raw gold and silver in languages near the peak of the market, and then lost her investment value after selling it at a lower price.
“I don’t want to make money,” Fateme said. "I just don't want to lose my family's savings. But sadly we did."
However, demand for gold continues even at a slower pace due to huge nuclear deal hurdles with the United States.
U.S. officials have repeatedly said they want Iran to stop enriching uranium, which is excluded by the Islamic Republic. As the talks continued, President Donald Trump had been engaging in "maximum pressure" campaign against Iran and issued threats and further sanctions against crude oil exports, the country's main source of foreign income.
Meanwhile, Tehran has raised its highly enriched uranium stock to levels in recent months.
Given the ongoing risks, many Iranians are believed to have gold and dollar hidden in their homes, bypassing the banking system. “Just like wine, wine is in storage,” said Mohammad Keshtyaray of the Special Committee on Gold and Jewelry.
Local media often report theft. Mina, 72, recently returned home from a two-week holiday and found that all the jewelry she kept in her bedroom had disappeared. Nothing was stolen.
This financial bubble surrounding gold has not helped crafters and jewelers, who say the demand for decorative gold (which has long played a major role in Iranian culture) suffers as much as other economies.
"A thousand years ago, there was a gold market in Isfahan," said Ali, a gold merchant in a Tehran market. "Now, this is not to say that women have lost interest, but that they have lost purchasing power."
Other reports by Leslie Hook in London