As per Turkish Central Bank's latest inflation report, in the first quarter of 2023, annual consumer inflation was 50.5%. Such high inflation has left very few options for Turkish citizens that have forced them to buy gold to hedge against inflation.
Turkey has been accumulating gold for some months and was the biggest buyer of the metal among monetary authorities last year. Gold is also a popular commodity among Turkish households who use it as a hedge against currency and inflation pressures.
According to GlobalData, Turkey is the world's nineteenth-largest producer of gold, with output of 1,594koz in 2022, up by 11% on 2021. Over the five years to 2021, production from Turkey increased by a CAGR of 14% and is expected to rise by a CAGR of 6% between 2022 and 2026.
Turkey's official gold reserves rose by 148 tonnes to 542 tonnes last year, marking the highest level on record for Turkey, according to the World Gold Council data.
China imported 1,343 tons of gold in 2022, the highest import level since 2018. Total gold imports for the year were up 64% over 2021. China ranks as the world's biggest gold consumer.
The country with the purest gold in the world is Switzerland, a country known for paying attention to quality. Below, the precious metals experts from First National Bullion and Coin, the best place to buy gold in Scottsdale, explain why this particular country has an affinity for pure gold.
China is the leader of the most gold buying country. China is the world's top bullion buyer.
Jewellery and Silver
An exquisite piece of gold and silver jewelry, with or without stone setting, is something you should look for. Surprisingly, although the prices of gold and silver are fixed internationally, jewelry items in Turkey are cheaper than in other places. This is due to the low labor cost.
IGR is authorized by the Turkish Treasury and sell certified gold Bullion in sizes ranging from ½ gram to 100 grams. California Gold & Silver Exchange understands that Turkish gold is of high standard and quality. The gold jewelry from Turkey ranges from 10 karat to 21 karat.
Turkey's gold imports from Switzerland rose to the highest since at least 2012 in January as the country's soaring inflation spurred demand for the precious metal.
Turkish gold can be 10-karat, 12-karat, 14-karat, 18-karat or 20-karat. Though, the lower karat Turkish gold is usually produced for the American retail market. The purity stamps found on Turkish gold are normally: 10-karat '417'
The main difference here in Turkey is the quality and creativity of the designs plus the excellent workmanship. The price of gold is the same all over the world but gold jewellery here tends to be cheaper than many places due to lower labour costs.
The leading gold mining countries
China, Australia, Russia, and Canada are respectively the largest producers of gold in the world, as of 2022.
Yellow gold is described as such because of its yellow colour which is a result of it being alloyed with silver and copper.
In addition to its financial benefits, gold is linked to Qatar's famous heritage, particularly the country's unique designs passed down through generations.
Gold is often considered a strong asset for diversifying your portfolio, based on its stability and performance compared to other markets. The precious metal's appeal tends to increase when investors face economic uncertainty and recession, as more people become interested in buying gold.
The current gold price of Kilogram in Turkey is TRY 1,478,356.60 (Turkish lira).
The highest karat of gold is 24K gold. 24 karat gold is 100% pure and doesn't contain any other metals, making it the purest gold available. This means that it has zero impurities and is usually softer than lower karats—10K and 14K.
Hong Kong. Hong Kong is the country with the cheapest gold in the world. Banks are plentiful here with competitive premiums on gold coins – making investing easy to do without breaking the bank. There are several places you can buy physical gold in Hong Kong.
Dubai has always been favoured for its exemption from taxes. It is one of the main reasons why people choose to move to the city, as well as buy gold. Due to the exclusion of taxes in the emirate, prices for gold in Dubai have always been cheaper as buyers would only pay for the value of the gold jewellery.
At the forefront, Turkish jewelry is known for its unique style and use of gemstones. Popular gemstones in Turkish jewelry today include stones like ruby, emerald sapphires, turquoise, chalcedony and agate. Another defining characteristic has to do with the metal.
The gold jewelry from Turkey ranges from 10 karat to 21 karat. The 10 karat and 14 karat jewelry are made for the U.S. retail market and is stamped “417” for 10k and “585” for 14k. 18 karat and 21 karat gold are generally made to be sold in Turkey for the Turkish people and the people who go to turkey on vacation.
The gold price is pretty much the same globally. The cost of gold jewellery in India is generally based on the weight. In Australia and Canada it is based on what the jewellery retailer believes he can get for it including his rent, his labour and other outgoings.
China has recently considerably ramped up its gold imports, in an effort to diversify the People's Bank of China's (PBOC) holdings, as well as reduce their reliance on the US dollar (DXY).
China may invade Taiwan, or it may not. Either way, there is financial uncertainty. Precious metals are the counterbalance to that uncertainty. Russia, China, Brazil, Egypt, India, Turkey, Qatar, and many other countries are stockpiling gold to overthrow the Dollar and ensure sovereignty.