Monday, August 6, 2018

Iran the next country to validate gold as the best safe haven during a monetary crisis

A couple years ago when India's Prime Minister took it upon himself to eliminate the nation's two largest currency denominations, gold price on the black market skyrocketed and by some reports reached as high as $4200 per ounce.  And more recently in Venezuela, the value of gold in Bolivars has gone up in multiples rather than in percentages.

What this says to both investors and savers is that gold has not lost any of its luster as the world's best wealth protection instrument and safe haven during a monetary crisis.  And now on August 6 the people of Iran are figuring this out as gold demand climbs in the wake of the Rial's devaluation.

Gold prices in Iran are hitting record levels daily as Iranians seek to protect their savings against pending US sanctions that are dragging down the national currency. 
The first round of renewed US sanctions will take effect on Tuesday with the harshest penalties expected in early November. The US will impose a ban on the country’s automotive sector and metals trading, while further sanctions will target oil and shipping industries. 
The imminent ban has tripled year-on-year demand for the precious metal, including bars and coins, to about 15 metric tons, according to the latest report by the World Gold Council. To meet the surging demand Iran's central bank had to mint hundreds of thousands of coins, reportedly totaling over 60 tons of gold. 
The price for a 8.13-gram gold coin reportedly hit 36 million rials ($820) on Sunday, more than double its price in January. Last week, gold set a record of 45 million rials ($1,025) per coin. – Russia Today
Unfortunately, most people end up waiting until the last minute to purchase gold when a monetary crisis hits, and they end up paying exorbitant prices due to shortages and increased demand.  And besides India, Venezuela, and now Iran, the West in general is not immune to the potential of their own crisis since real inflation in the U.S. is back near levels not seen since the 1970's and where gold skyrocketed from the $200's or over $800 in a very short amount of time. 

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