The head of Tehran's Gold, Jewelry, Silver, and Coin Union voiced alarm about Iran's current economic hurdles and the significant impact on gold demand.

Nader Bazarafshan on Sunday revealed a serious decline in the demand for gold purchases, citing a decrease of 20-40%. He claims this recession in the gold market is even more severe than the challenges encountered during the peak of the COVID-19 pandemic.

While dismissing rumors of substandard gold entering the market, Bazarafshan has proposed a strategy to address the dwindling demand, recommending the consideration of gold with a karat value lower than 18, a move aimed at enhancing demand by adjusting prices in response to the prevailing decrease in people's purchasing power. However, the proposal has yet to gain official approval.

Gold has traditionally held a significant role in the financial landscape of Iranians, serving as a means of safeguarding assets against economic volatility. The recent economic fluctuations and downturns have further underscored the importance of gold jewelry as a secure investment avenue for the population.

This dire situation was previously echoed by Yuosef Taqizadegan, the head of the Mashhad Gold, Jewelry, and Silver Union, who highlighted the economic struggles faced by young couples. Taqizadegan revealed that the soaring price of gold, which has surged by 100% compared to the previous year, has prompted a shift towards purchasing silver rings, as many newlyweds find themselves unable to afford gold rings.

The World Gold Council, in a recent report, affirmed the decline in gold jewelry purchases within Iran. The report stated that during the first quarter of this year, gold jewelry sales experienced a 15% drop compared to the same period in the previous year.