Gold 18k(Gram)/IRR Exchange Rate & Market Trends

The gold price bubble in Iran refers to the markup between the local gold prices and their intrinsic value based on global market rates. Typically, Iranians calculate a coin’s intrinsic value using its weight, purity, global spot price, and the dollar-to-rial exchange rate. When Tehran market prices significantly exceed this calculated value —often by 20% to 30%— that difference represents the 'bubble.' Factors like high local demand, inflation, geopolitical uncertainty, and import limitations contribute to this premium. Understanding this helps buyers distinguish between what gold 'should' cost and what it actually sells for in Iran.

18-karat gold, also labeled 750, contains 75 percent pure gold by weight, with the remaining 25 percent made up of other metals like silver, copper, or zinc for strength and color. It is the most common purity for jewelry sold in Iran, distinct from 24k bullion and the 900-fine gold used in coins.

The gram price and the mithqal price describe the same 18-karat gold, only in different units: a mithqal (mesghal) traditionally used by Iranian goldsmiths equals 4.608 grams. The mithqal price is simply the gram price scaled up by that conversion factor, so the two move together.

The quoted gram price reflects only the value of the raw metal. Jewelry sold in shops adds manufacturing wages (ojrat), the seller's profit margin, and value-added tax on top of that base gold value, which is why a finished piece costs more than the raw price per gram.