Argentines Double Gold Purchases Amid Dollar Weakness, Inflation

Argentina, a nation historically known for its strong affinity towards the U.S. dollar, is now witnessing a significant shift in its investment preferences. The country's residents are increasingly turning to gold as a means of preserving wealth, driven by a combination of factors including the weakening appeal of the dollar, relaxed foreign exchange controls, and the allure of gold as a safe-haven asset.

This transformation is evident in the surging demand for gold, with local jewelers reporting a doubling in daily inquiries. Banco Piano, one of the few banks in Argentina legally authorized to sell gold with certificates of origin and a purity rating of 999.9, has seen a fourfold increase in gold imports from Switzerland in 2025. The bank, which has a customer base of approximately 3 million, completed five gold shipments this year alone, compared to just two in the entire year of 2024.

The relaxation of foreign exchange controls has been a significant catalyst for this trend. Argentines can now directly purchase gold using the local currency, the peso, and even opt for interest-free installment plans, bypassing the need for dollars entirely. This shift is further fueled by the strengthening peso under President Javier Milei's administration and the persistent inflation in the United States, which has diminished the dollar's appeal as a hedge against inflation.

The trend is not limited to physical gold. Investors are also flocking to gold exchange-traded funds (ETFs) as a convenient and liquid way to gain exposure to gold. The net inflows into SPDR Gold Shares, one of the most popular gold ETFs, surged by 170% in the first quarter, reaching a total investment demand of 552 tons, the highest level since early 2022. This surge in demand reflects a broader sentiment among Argentines that gold is a reliable store of value in times of economic uncertainty.

Local jewelers are also benefiting from this gold rush. Leiva Joyas, one of Argentina's most renowned jewelers, has seen its daily gold inquiries double in 2025, reaching 300 inquiries per day. The company's sales have already doubled compared to 2024, driven by the economic uncertainty and the low returns on traditional savings accounts. The price of gold jewelry in Argentina is approximately 114 dollars per gram, with a buy-sell spread ranging from 10% to 15%. Some purchases can be made in three or six interest-free installments, while banks offer cashback of up to 30%.

This trend is part of a broader movement where individuals are increasingly turning to gold as a safe haven asset, driven by economic uncertainty and inflation concerns. The appeal of gold in Argentina is not only due to its historical significance as a store of value but also because of the favorable purchasing conditions offered by local banks and jewelers. These conditions include flexible payment plans and substantial cashback incentives, making gold more accessible to a wider range of consumers. The surge in gold purchases reflects a growing sentiment among Argentines that gold is a reliable hedge against economic volatility and currency devaluation. This trend is likely to continue as long as economic instability persists, further solidifying gold's status as a preferred investment option in the region.