Challenges and Obstacles Facing Online Gold Sales: A Bright Future or Complex Hurdles on the Path to Digitalizing the Gold Market
Gold sales, as one of the most valuable commodities, have always been a fundamental need for people. In recent years, the emergence of online gold sales platforms has revolutionized this industry by making gold more accessible than ever. These platforms offer users greater transparency and ease in buying and selling gold. A major advantage of this method is the significant savings in time and cost for customers—there is no longer a need to visit physical jewelry stores, and buyers can purchase gold anytime and anywhere. Additionally, the variety of products available on these platforms gives customers access to a broader selection.
However, these platforms also face challenges. Building trust in the online environment remains one of the most critical issues for sellers and buyers alike. Concerns about gold quality, authenticity, and the risk of fraud cause some customers to still prefer in-person purchases. Moreover, the lack of clear regulations and insufficient oversight of online gold sales platforms can create additional problems. Despite these challenges, the growth of these platforms reflects significant changes in gold purchasing patterns and increasing consumer confidence in online services.
The Need for Clear and Transparent Legal Frameworks
Saeed Sadeghi, Board Member of the Miligold platform and a member of the Tehran Electronic Commerce Association, highlights the advantages of online gold businesses: “Online gold sales offer several key benefits that are important both for the public and the country’s financial system, including accessibility for the general population, low transaction fees, 24/7 trading, price transparency, enhanced social equity, development of the financial system, digital transformation, and reduced dependency on traditional markets.”
Regarding government concerns, he explains: “One major worry is the sale of gold without real backing, which can undermine user trust and disrupt the market. To address this, reputable platforms like Mili ensure physical reserves before selling gold. Another concern is the potential misuse of gold’s liquidity for money laundering. To combat this, strict identity verification protocols (such as matching national ID and bank account numbers) have become mandatory.”
Sadeghi adds: “While some platforms lack transparent pricing, leading platforms offer real-time, unified pricing to ensure clarity. Given the nascent nature of this market, concerns persist over the absence of clear regulations and adequate oversight. The Chamber of Guilds drafted regulations in 2020, and the National Union of Virtual Businesses was assigned to issue licenses in this sector. User data security is another concern, which can be mitigated through encrypted infrastructure and secure databases.”
He emphasizes: “For sustainable growth in online gold sales, it is essential to provide clear and updated legal frameworks, advanced payment and instant settlement systems, scalable digital infrastructure, development of new technologies, oversight and assurance of gold reserves, user education, continuous security and support, as well as tax incentives and financial backing. These foundations not only build user trust but also establish online gold sales as a safe, transparent, and stable method in Iran’s market.”
Sadeghi also stresses a key challenge: “The lack of comprehensive and unified laws specifically tailored for online gold sales. Existing laws are mostly designed for traditional gold sales and do not align well with the online environment. This legal gap causes confusion among users, businesses, and regulators alike. The absence of smart regulatory mechanisms, outdated laws on selling gold without inventory, lack of mandatory standards for identity verification and transactions, poor coordination among supervisory bodies, and insufficient support for emerging technologies in legislation are all obstacles that could be overcome with precise regulations, paving the way for growth in this sector.”
Opportunities and Threats in Online Gold Sales
Fazel Mirrakei, Deputy CEO of the “My Gold” platform and another member of the Tehran Electronic Commerce Association, divides online gold sales into two main categories: molten gold and decorative gold jewelry.
Regarding molten gold, he says: “Online sales of molten gold offer many benefits, such as easy access, real-time price visibility, and preservation of the investment’s value. Frequent trading also allows users to profit from market fluctuations.”
From Mirrakei’s perspective, this model benefits the financial system as well: “With verified identification of buyers and payers, along with electronic invoicing, transparency is ensured. This can help combat money laundering and tax evasion.”
He also points to government concerns: “Challenges include potential ‘empty selling’ by providers, which disrupts supply and demand. Holding excessive gold reserves by private parties without guarantees, or providers going bankrupt, could cause significant losses to customers. The issue of trading ‘paper gold’ and creating artificial supply and demand is another concern.”
Mirrakei believes: “Molten gold sales have expansion potential in the digital space, provided laws and regulations are reviewed and improved. However, infrastructural weaknesses must be addressed. High transaction fees compared to traditional markets and weak gold backing in some platforms are weaknesses that need correction.”
The Future of Gold Sales on Digital Platforms
The online gold sales market, as a clear example of digital transformation, holds great potential for enhancing accessibility and financial transparency. Yet, infrastructural issues, unclear legal frameworks, and security concerns remain significant barriers to its development. Achieving a sustainable and trustworthy system requires close cooperation among regulatory bodies, active platforms, and users. Clear regulations, guaranteed gold reserves, and raising awareness about safe trading can strengthen public trust and support market growth. The future of this industry depends on a serious commitment to improving and completing legal and technical infrastructures—a step that, if taken properly, could position Iran as a regional leader in online gold sales.