Iran gold union warns against rising 'gold leasing' schemes

Sat Sep 05 2026

Iranians are being warned against handing their gold to jewelers in return for regular payments, with the head of a provincial Gold and Jewelry Union saying the practice carries a high risk of losses.

Head of the Gold and Jewelry Union in Kermanshah, Mohammad Saeed Jafari, told ISNA that under the arrangement, jewelry businesses use or trade the gold and pay the owner what is described as rent or a return.

Jafari did not specify exactly how the gold is used after it is handed over. Such arrangements can effectively allow a jeweler to use the metal as part of its business inventory, meaning the owner's gold may not necessarily be kept aside in its original form.

"We have received numerous complaints," he said, adding that in some cases operators initially paid attractive returns to gain customers' trust but later failed to return their gold.

Jafari urged people to avoid such arrangements where possible. Those who still choose to lease out their gold should obtain strong documentation and deal only with licensed, established jewelers, he said.

He also cautioned investors buying melted gold or bullion to avoid online sellers where possible and instead use licensed gold and jewelry businesses.

**Economic pressure fuels search for returns**

The warning comes as Iran's economy faces mounting pressure after years of sanctions, high inflation and chronic currency weakness. The rial fell to a record low of about 2.2 million to the US dollar this week, while inflation was running at about 66% in July.

Washington has also stepped up its economic campaign in recent weeks. In late August, Treasury Secretary Scott Bessent launched a campaign aimed at cutting Iran's financial links abroad, building on measures targeting shadow banking networks, foreign exchange houses, cryptocurrency platforms and shipping channels used to move money and trade revenues.

These steps are designed to make it harder for Iran to access foreign currency and move funds through the international financial system, adding pressure to an economy that was already struggling with sanctions, high inflation and a weakening rial.

Source: https://www.iranintl.com/