Mohammad Keshti-Aray, president of the Specialized Gold and Jewelry Commission at the Iran Chamber of Guilds says stagnation in the gold coin market in the mourning months (Moharram and Safar) is expected to continue at least for one month.
"Demand for gold coins sharply drops, due to the annual rituals. This is while some other markets were more attractive for investors," IRNA quoted him as saying on Tuesday.
Since the beginning of the current fiscal year in March, TEDPIX, the main index of Tehran Stock Exchange, soared about 80%. This encouraged investors to move away from the currency and gold market to the stock market, Financial Tribune reported.
Tehran Gold and Jewelry Union's data indicates nearly 16% drop in the average price of euro in the open market in the past six months. The US dollar also experienced 11% decline in price during the same period.
Keshti-Aray said the gold coin market is no more attractive for investors, at least for now. "Purchases are limited largely to those who want to use it as a gift. However, many people cannot afford buying gold coins and prefer other gifts."
The expert predicted a slight boom in the market after the end of mourning months, though "the boom is expected to be short-lived because the market is normally stagnant in the winter months."
Bahar Azadi gold coin sold for 39.6 million rials on Tuesday in Tehran, marking 0.76% decrease compared to the previous day's close. The Emami Gold Coin was priced at 39.8 million -- 1.13% lower than the price on Monday.