In the world and Turkey, where the risk of a major global war has recently been voiced, interest in gold purchases is also increasing. Turkey has surpassed India and China to become the country that purchases the most gold in 2024. The Central Bank’s gold reserves increased by 2 tons in the last week, reaching 744 tons, and the share of gold in the reserves is 41 percent, while Turkey’s constant increase in gold reserves has become a matter of curiosity.
MINES ARE BEING DEPLETED
Gold and money markets expert Islam Memiş stated that many countries, such as Turkey, have increased their gold reserves, and the main reason for this is preparation for war, the transition to digital currencies and the dollar being seen as a threat. “Gold is a limited asset. Therefore, the world also needs it physically and the gold mines underground are depleting every day. Turkey will continue to buy gold at every opportunity.”
NEW RECORD EVERY MONTH
Making predictions about the end of the year, Memiş said: “Gram gold will approach the 3,000-3,500 TL range by the end of the year. Gold will experience its golden age in 2024. Even at the level we have reached today, gold has made its investors happy in terms of fixed return. Gram gold started the year at 2,050 TL and today it has risen to 2,865 TL. These increases will continue with a new record every month. he said.
QUANTITY IS IMPORTANT
Finally, Memiş warned investors with the following words: “Gold investors should look at the quantity, not the price. Because it will become more difficult to access physical gold day by day. Gold has been the most profitable investment tool in Turkey for the last 25 years. It has yielded more than 8,000 percent. It ranked first again in August with a yield of 4.1 percent. It will continue to provide this yield.”
“PURCHASE WILL CONTINUE”
Economist Özlem Derici Şengül also emphasized geopolitical risks while talking about the increase in demand for gold. Şengül said, “Central banks are also accumulating reserves in order to diversify reserves in our country and all over the world. Since Türkiye is not a producer, it will continue to purchase gold. However, due to the restrictions imposed by the state, there are significant decreases compared to last year,” he said.
“THE RATE OF INCREASE WILL SLOW DOWN”
Arda Tunca (Economist)
“Stockpiling gold is a reaction not only by our Central Bank, but by all central banks around the world. After 2020, Covid-19 and the geopolitical risks that followed ensured that gold maintained its role as a protective asset. Central banks also carry out these operations to protect themselves against crises. Turkey, like many developing countries, uses this reflex. Turkey has pulled itself together in terms of reserves. Both gold reserves and foreign exchange reserves have increased in recent times. However, I predict that the speed of gold purchases will decrease after a while.”
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