Tehran: The Iranian economy is cornered because of the withdrawal of the European and Asian countries and companies from the trade and crude oil related cooperation, fearing US sanctions. Iran has decided to increase the share of Gold in the economy, to recover the economy, breaking the shackles. The government has ordered starting excavation of Gold and other precious metals in the country. Iran is said to have an estimated Gold reserve of at least 340 tonnes.
The company connected with the Iranian mining and excavation ministry recently made a significant announcement. The company clarified that a decision had been taken to immediately start excavation in the six mines of the precious metals, Gold and Copper. The company announced that this decision was made in order to stimulate the Gold transactions in Iran.The Iranian company informed that these mines would be operated in the Isfahan, Khorasan and Azerbaijan provinces of Iran.
The Iranian government has signed a MoU for this and with this, the illegal mines in the country will be awarded a legal status and will improve the country’s earnings. The company connected with the Iranian government expressed confidence that this will increase the employment opportunities in Iran and will give an impetus to the economy. This action has been initiated under direct orders of the Iranian supremo, Ayatollah Khamenei. Khamenei claimed that the Iranian economy could be kept out of the purview of the US sanctions if the Iranian economy became self-sufficient. This is the reason forwarded for the Khamenei decision to start Gold excavation from the mines.
It is said that Iran has nearly 7% of the total mineral deposits in the world. Gold is third after the crude oil and Gas. There are three Gold mines operational in Iran as of date. It is claimed that there is at least 100 tonnes of gold in each of the shafts. Other than these, there are 12 neglected Gold mines. A claim has been made that if excavation is undertaken in these mines, the Gold reserves of Iran will rise to 1,000 tonnes.
There were published reports that the Iranian population is increasing their investments in Gold fearing the repercussions of the US sanctions. The United States had targeted the Iranian Gold trade in the first round of sanctions imposed in May. This increased the Gold demand in Iran by 200%. This affected the Iranian economy, and the rate of the Iranian currency Rial came down by half.
Three-fourths of the Gold demand in the Gulf is supplied only by Iran. But the need for Gold ornaments is seen decreasing in Iran by the day, as compared to the other Gulf countries. As per the information published by the World Gold Council, the demand for Gold ornaments in Iran has decreased by 35%. The World Gold Council has also noted that the Iranian people prefer to purchase Gold bricks and coins instead of the Gold ornaments.
Iran has criminalised possession of gold bricks or coins. Only last week the Rouhani government executed five people by hanging for collecting Gold coins. Out of these, Vahid Mazloumin known as the Sultan of Coins had a collection of coins weighing two tonnes.