Turks rush to gold as prices soar, but supply tightens
ISTANBUL
As gold prices soar to unprecedented heights, Turkish families are rushing to invest their savings in the precious metal, triggering shortages of small bars and coins across Istanbul’s bustling Grand Bazaar and Kuyumcukent, a massive jewelry production and trade complex located in Istanbul.
Jewelers say demand has surged so sharply that finding one-gram gold pieces — the most popular form of investment among housewives and ordinary citizens — has become increasingly difficult.
On the morning of Oct. 16, the price of a gram of gold stood at 5,900 Turkish Liras in the Grand Bazaar, only to climb to 6,050 liras by the time traders checked again in Kuyumcukent. Shopkeepers report that while some people sell gold to cover urgent needs such as buying a home or car, the overwhelming majority are holding or buying more.
Traders stated that as gold has been breaking records every day, demand surged suddenly and finding gram gold has become difficult.
“About 90 percent of people are buying, very few are selling,” said Hakkı Can Özdemir, a market analyst and long-time Grand Bazaar trader. “Since September, demand has spiked while supply has tightened. We are selling 10 to 20 times more than we are able to buy.”
The rush is not limited to gold. Jewelers note that silver sales are also rising, with many who cannot afford gold turning to cheaper alternatives. Popular items include gram bars, traditional bangles and silver jewelry.
Crowds have also been spotted at currency exchange offices, where citizens are converting their dollars and euros into gold. “People are liquidating foreign currency savings and moving into gold and silver,” Özdemir said.
Traders attribute the record-breaking rally to a mix of global and domestic factors: Geopolitical tensions, concerns over the world economy, central bank purchases, expectations of U.S. Federal Reserve rate cuts and political uncertainty in Washington.
“The demand is very strong, but supply is not strong enough to meet it,” Özdemir added, noting that Türkiye’s gold imports have not kept pace with the surge in local appetite.
For now, jewelers say, those with gold in hand — from housewives to pensioners — are among the biggest winners of this extraordinary rally.
