Gold is Money, At Least In Iran

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Gold Is Money, At Least In Iran by Rory – The Daily Coin

Let’s be clear about something – gold is money, nothing else. The U.S. has made a mess out of the middle east, especially Iran, Libya and Syria. These nations are tied directly to China, Russia and the other nations around the heartland including India. Their allies will ensure Iran has what it needs regardless of sanctions or any other monetary nonsense the U.S. globalist attempt to put into place.

Gold has always been money and now, if you want to rent an apartment in Iran the cost is two gold coins, not 40million rial notes. We have been writing endlessly about the changes in monetary policies across the heartland, Russia and China and now we are beginning to see real change and gold is beginning to emerge from the shadows and the market is demanding gold for payment instead of other currencies – crypto or any other fiat paper currency – they are not welcome and the market says – “bring me physical gold”.

The decline of the rial is increasing rents and forcing many residents in Tehran to leave the city

It’s the commodity which becomes a safe haven at times of economic crisis. Now, with the crash of the rial, Iranians are using gold for more everyday payments, most notably rent – but the resulting price hikes are starting to affect the demographics of Tehran itself.

The currency began to slump in December, when Washington flagged that it would withdraw from the 2015 nuclear deal.

That decline accelerated in May after US President Donald Trump made a formal announcement that the US was pulling out of the deal with world powers and reimposing economic sanctions on Iran.

While the offical rate peaked at around 45,000 rials to the dollar, this was only available for a small group of importers and businesses, leaving most Iranians to pay double that.

On 29 July, in the runup to fresh US sanctions, money exchanges in Tehran were charging around 100,000 rials for one dollar; within 24 hours this had increased to 110,000 rials.

Iranians have traditionally saved gold coins for major purchases such as wedding costs. That behaviour has become more common, however, with the re-imposition of US sanctions in August, when gold purchases hit a four-year high.

Meanwhile one gold coin neared 40m rials, although that rate has since decreased to 36m rials.

Rents go up as purchasing power falls

The downward spiral of the rial has led some landlords to try to safeguard their income by turning to gold.

Hesam Oqabai, the chairman of the Real Estate Agents Union of Tehran province, said the housing market accounts for about 45 percent of activity in the Iranian economy.

“Given our country’s economic condition, the fluctuations in the foreign exchange market are affecting the housing market,” he said.

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Why landlords turn to gold

Esamil Jalali is a landlord in Vanak, a wealthy and well-connected bustling neighbourhood in northern Tehran.

He is one of those property owners who not only has increased his rents but also asked for payment in gold rather than in rials.


Vanak has become increasingly expensive for many tenants looking to rent (Wikipedia/CC)

Currently he is asking prospective tenants to pay two gold coins to rent a 95 square metre apartment for one month.

“I know that many may not be able to afford it,” he said, “but when I see that the currency I may get from my tenants would have less value compared to the previous month, then that leaves me with no choice. If I continue to rent out my apartment in return for rials, then I would face financial loss.”

Some landlords are also known to be demanding payment in dollars from their tenants, although such widespread behaviour, while not illegal, is frowned on by the authorities. Source

If the U.S. and her western allies continue down this path of monetary monkey business we are going to see other nations forced to to use alternative currencies. Cryptocurrencies are not stable enough for this purpose and the wild swings in price make them very unattractive to someone conducting retail business. I understand these digital blimps on a screen have an audience, however, it is very limited.

Gold backed cryptocurrencies could be the next step in the evolution of currency. Gold on the blockchain would eliminate market rigging and would identify every ounce on the blockchain. Until there is a stable, widely accepted gold backed anything (currency, cryptocurrency or otherwise), citizens and businesses are left to conduct business using the real thing – physical gold.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.