Hidden gold wealth in Turkey reaches 5 thousand tons and 600 billion dollars
While the scale of gold held by households outside the banking system draws attention, various proposed solutions are being discussed to bring this massive capital into the economy.
It has been reported that the amount of gold held by households outside the banking system in Turkey has reached approximately 5,000 tons, and the value of this wealth at current prices is approaching 600 billion dollars.
The Wealth of Hidden Gold
It has been announced that the amount of gold held by households outside the banking system in Turkey has reached approximately 5,000 tons, and the value of this wealth at current prices is approaching 600 billion dollars.
Reasons for the Trend Toward Physical Gold
Koç University faculty member Selva Demiralp stated that the orientation toward physical gold is linked to high and unpredictable inflation, past banking crises, and the depreciation of the lira.
Demiralp pointed out that gold has become a hedging tool against economic uncertainty for households, emphasizing that citizens' trust in banks remains at low levels.
Cost It Imposes on the Economy
Gold remaining outside the financial system is not lent to businesses, and a significant portion of gold has to be imported every year, increasing the current account deficit.
While the sector alone has an annual import requirement of more than 170-200 tons, it is stated that this capital sits idle instead of being put to work.
Proposals to Integrate It Into the System
Istanbul Chamber of Jewelers President Mustafa Atayık had proposed the establishment of a specialized bank named Altınbank, alongside the YAY-SİS model, to integrate savings into the financial system.
The YAY-SİS model envisages that citizens' physical gold be valued through jewelers and its pure gold equivalent transferred to bank accounts.