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Since the beginning of this year, the international gold price has continued to rise. In Turkey, which is plagued by high inflation, the price of gold has risen even more significantly. The reporter of the main station recently visited Turkey's largest gold trading center, where not only the price of gold has soared, but there is even a situation where supply exceeds demand.
Reporter Chen Huihui: The gold market in Istanbul's Grand Bazaar is Turkey's largest gold sales center, and long queues to buy gold abound.
Turan Zibal, owner of a gold shop in Istanbul, Turkey: 24K gold coins of 1 gram and 5 grams are selling very quickly, and now the inflation rate is too high, and people are coming to buy gold to preserve its value.
In recent years, the Turkish lira has depreciated rapidly and inflation has risen, which has greatly boosted the demand for gold. Demand for gold bars and coins in Turkey surged by 88% in 2023, according to the World Gold Council.
Turkish Gold Market Analyst Islam McMysh: Gold in Turkey is a hedge of value over the lira, and the yield of gold in Turkey in 2023 is 82%, which is the highest yield investment product.
In August last year, the Turkish government announced a gold import quota system, but many jewellers were given very limited quotas that were far from meeting actual demand. Industry insiders pointed out that the introduction of relevant policies not only did not curb the demand for gold, but further pushed up the price of gold.
Turkish Gold Market Analyst Islam McMysh: This quota system has increased the cost of domestic gold production in Turkey, and the domestic gold price is at an increasing premium to the international market, with the price per kilogram of gold being between US$2,000 and US$3,000.
The huge difference in gold prices at home and abroad has also led to a surge in the number of gold smuggled in Turkey. In the first quarter of this year alone, Turkish security forces seized 350 kilograms of smuggled gold at border crossings, 60 percent more than in the whole of last year. In order to curb the crazy rise in gold prices, the Turkish government has increased the import quota of some institutions, and the national mint has also been rotating seven days a week to improve production efficiency. However, analysts pointed out that as long as inflation in Turkey persists, the price and demand for gold are likely to remain high.
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Intern Editor: Carrie To