Title: Iran’s Exchange Center Launches Fifth Phase of Gold Coin Pre-Sale Initiative
In a strategic move to regulate the domestic gold market, the Iran Mercantile Exchange (IME) has announced the launch of the fifth phase of its government-backed gold coin pre-sale scheme. Scheduled to begin on Saturday, October 7, 2024, this initiative is a key component of the Central Bank of Iran’s (CBI) policy to manage market demand and stabilize prices.
A Shift in Pricing Strategy
A significant development in this phase is the introduction of a new pricing mechanism. Unlike the previous four stages with fixed prices, this round will utilize a Dutch auction model. As explained by the IME Spokesman, Asghar Balsini, the CBI will set a minimum price floor, while participants will submit their own competitive bids. The final price will be determined within this “price corridor,” marking a more market-oriented approach to the pre-sale process.
Key Dates and Participation Details
Prospective buyers have a clear window for participation:
- Fund Deposit: From Saturday, October 7, until 23:00 on Monday, October 9.
- Order Registration: On Tuesday, October 10, from 8:00 to 16:00.
Participants are required to deposit 100% of the value of their bid, plus a 0.1% transaction fee, into their electronic wallet on the IME’s dedicated platform. The physical delivery of the coins is set for January 20, 2025.
Purchase Limits and Coin Specifications
In this phase, individuals can purchase up to 15 gold coins, comprising a mix of full, half, and quarter “Azadi” coins. A notable condition is that buyers who participated in the previous pre-sale session on September 8 must deduct that purchase from their new 15-coin quota. The coins offered in this round are from the 2007 mint, though the IME has confirmed that new mint coins will be introduced in subsequent phases as per the CBI’s directives.
Delivery and Cancellation Procedures
The physical coins can be collected from selected branches of the National Bank of Iran, which buyers can choose during registration. A delivery fee of 30,000 Tomans per coin will be applied. Buyers have a 21-business day window to collect their coins from the delivery date. Should a buyer decide to cancel, they can do so from October 23 up to 10 business days before the delivery date for a refund, minus the exchange center’s fee.
Market Stabilization Objectives
The IME spokesman underscored the scheme’s role within the broader economic framework. He noted that while global gold ounce prices, which have seen a 30% increase over the past six months, significantly influence domestic prices, the pre-sale and auction initiatives are direct tools to manage speculative demand and price bubbles. The center continues its efforts to balance the market in line with the strategic directives of the Central Bank, with future pre-sale phases planned for the remainder of the current Iranian year.