Gold is winning over the hearts of Argentines, a nation once almost irrationally devoted to the dollar.
Argentina’s deep-rooted reliance on the greenback – the country ranks among top holders of the US currency, according to estimates by economists and former Central Bank officials – is now being challenged by a growing appetite for gold. From bullion and small bars to exchange-traded funds, Argentines are increasingly turning to the precious metal as an alternative store of value.
The shift signals a profound change in investor psychology as the dollar no longer offers the same inflation hedge it once did. The ongoing cost-of-living surge in the United States, coupled with a rise in the peso under President Javier Milei, has diminished the greenback’s lure. For many Argentines, it is now merely a “second-best” choice among safe-haven assets.
The recent removal of foreign exchange controls for individual investors has accelerated that trend. Argentines can now purchase gold directly in pesos, even through interest-free installment plans, eliminating the need for dollars. That opened the door for small savers in search of a more stable store of value.
“It is becoming very trendy,” said Leonardo Echegoyen, director at Banco Piano, one of the few Argentine banks that legally sells physical gold with a certificate of origin and a purity rating of 999.9 parts per 1,000, the only type of gold that can be sold abroad. “People want to earn a return on their dollars, and they’re looking for that return in this commodity,” he said.
Another driver for the newfound love for gold are fears that the US dollar might lose more of its value. The US currency is already down 7.5 percent against a basket of international currencies since the beginning of the year, after surging 4.4 percent in late 2024 after US President Donald Trump’s election win. “Little by little, people are starting to understand that monetary assets should be invested in something,” said Juan Piantoni, chief executive officer of Ingot, a safe deposit box provider in Argentina.
Argentines have harboured a deep distrust of their banking system since the 2001 financial crisis, when dollar deposits were forcibly converted into pesos. That trauma left an estimated US$200 billion outside the formal financial system — stashed in safe deposit boxes, real estate, or even unconventional hiding spots like mattresses.
Echegoyen recalls one customer who brought in a stack of US$100 bills fused into a solid block after storing them in a kitchen pipe that burst. “Gold is more practical for people who don’t know where to keep cash without it getting ruined,” he said. With a client base of around three million, Banco Piano has quadrupled the volume of gold imports from Switzerland in 2025. After making just two shipments in all of 2024, the bank has completed five so far this year.
Not surprisingly, gold is gaining space in Argentines’ safe deposit boxes – a place traditionally reserved for US dollars. “Storing dollars in a safe deposit box isn’t common practice in most countries. It’s a uniquely Argentine habit,” Piantoni said. The logic, he explains, is simple: safe deposit boxes are meant for valuables that need to stay out of the reach of others.
Globally, the price of gold has jumped more than 27 percent over the past year, hovering near record highs above US$3,300 an ounce. The surge has been fuelled by geopolitical tensions, stubborn price pressures and mounting expectations of interest rate cuts by major central banks.
In Argentina, gold in jewelleries is priced at around US$114 per gram, with a buy-sell spread of 10 percent to 15 percent, positioning it as a medium- to long-term investment. Some purchases can be made in three or six interest-free installments, while banks are offering cash back of up to 30 percent – an attractive perk in an economy still battling with double-digit inflation. Argentines are allowed to buy as much as US$7,200 in gold per month without disclosing the source of funds. A recent government bill aims to raise that cap to US$12,000.
Brokers, meanwhile, provide access to gold via exchange-traded funds like SPDR Gold Shares, known by its ticker GLD, rather than physical bullion. “There’s more demand for gold this year,” said Fabio Saraniti, a partner at local broker Win Securities. “That happens because when financial assets rise, people want to buy. And when they fall, they want to sell.” Net inflows into the SPDR’s ETF surged 170 percent year-over-year in the first quarter, pushing total investment demand to 552 tons, the highest level since early 2022, according to the latest World Gold Council report.
Precious metals traders at top banks including JPMorgan Chase & Co and Morgan Stanley posted their best performance in five years in the first quarter, in part thanks to an arbitrage opportunity that sparked a rush of bullion into the United States.
The trend is extending beyond the financial world. Leiva Joyas – one of Argentina’s most established jewellers – has seen daily gold inquiries triple in 2025, reaching 300 a day. Sales have already doubled this year compared to 2024. “People want to preserve their capital amid economic uncertainty. They know time deposits offer low returns,” said Daiana Azcona, a sales executive at Leiva Joyas.
While companies remain barred from investing in physical gold, individual investors – many from the agriculture and finance sectors – are entering the market with a long-term perspective. Gold was once shunned by traditional investors, Echegoyen said. “Now, even seasoned investors who had never considered it before are getting involved.”
by Ignacio Olivera Doll, Bloomberg
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