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4. Important information and tips about Persian rugs.

There have been many new developments that have taken place in the last few years and here are just a few.

• Until 1999, Persian rugs were sanctioned under U.S. laws from being imported into this country. This had raised the prices on the rugs that were already in the States and had created somewhat of a shortage of fine Persian rugs. Some retailers chose to smuggle them in, but this was a very expensive and risky operation, as well as illegal. Now that the law has been lifted, prices of Persian rugs have fallen to a more appropriate level. It is my believe, that the prices have stabilized and that there should not be a great drop in the value of the rugs.
• The prices for rugs are dictated by the strength of the dollar versus the rial, which is the Iranian currency. From 1999 to about 2002, the dollar was very strong and accordingly the rugs were cheaper to import. Since then, the dollar has taken a bit of a nose dive and the rugs have become more expensive with the weakening of the dollar. Overall though, the value is still excellent when you compare Persian rugs with other types or artwork and I don't foresee any further price escalation at this time.
• Another reason for the slight rise in prices is that the number of weavers has been steadily declining over the last 10 years due to a slowing demand for Persian rugs, mainly in Europe. The primary market for Persian rugs has been in Europe for decades and only in the last few years have other areas such as the Americas and the Far East emerged. Since the markets in Europe have been flooded and the demand has dropped considerably, many weavers have found it too difficult to make a living in the rug trade and changed care 
• Some retailers will sell Persian rugs made in India or Pakistan as real Iranian rugs. If you have any doubts, get a second opinion. Some retailers like to sell there rugs like cars and it is very unfortunate. My advice to you is to shop around and get to know the seller.