Iranians Rush to Gold and Crypto: Rial Hits Record Low Amid Sanctions Crisis

Why Iranians Are Flocking to Gold and Crypto

Iran’s rial currency has crashed to a historic low of over 1.2 million rials per U.S. dollar, driving ordinary citizens and investors alike toward “value-preserving assets” like gold, silver, and cryptocurrencies. This surge follows intensified UN sanctions, the aftermath of a 12-day war with Israel in June, and ongoing economic woes including mass layoffs and inflation. Traders in Tehran’s bustling Grand Bazaar report unprecedented demand, with gold coins recently surpassing 1.2 billion rials for the first time ever.

The Appeal of Portable Wealth in Uncertain Times

As regional tensions rise, portability has become a key factor, especially after tens of thousands fled Tehran during the Israel conflict, facing cash shortages at ATMs. Gold and silver now dominate as reliable hedges—1-gram 18-karat gold bars trade around 115 million rials (roughly $100), while 1-kg silver ingots near $2,000. Jewelers note a boom in small investment-grade diamonds and gemstones among wealthier buyers seeking discreet, easy-to-carry stores of value.

Gold’s Timeless Draw: Merchants like Mansour sold 6 kilos in two weeks to everyday savers fearing total loss of purchasing power.
Silver for the Middle Class: Affordable 100-gram bars are emerging as entry-level options for families.
Real Voices: Audio seller Hamid Safari converts savings to gold, citing its historical value retention amid crises.

Crypto Crackdown Limits Digital Hedging Options

Demand for Bitcoin and stablecoins persists, but authorities have tightened controls—halting rial transactions on exchanges earlier in 2025 and capping purchases at $5,000 annually per person. Over 10 million users now face barriers, pushing more toward physical assets as U.S. actions target Iranian crypto sellers. Fabric importers like Ahmad are liquidating stocks into gold and hard currency for potential quick escapes.

Broader Economic Pressures Fueling the Shift

Sanctions have crippled investment, modernized industries, and spiked staple prices like meat and rice, forcing even affluent families to sell jewelry for basics. Gold demand has inflated coin premiums by up to 30% above intrinsic value in recent months. This flight to tangibles underscores a deeper crisis, with experts warning of further rial devaluation unless tensions ease.