Arab Today, arab today golds lustre lures turkish savers
Last Updated : GMT 01:21:23
Arab Today, arab today
Arab Today, arab today

Gold's lustre lures Turkish savers

Arab Today, arab today

Arab Today, arab today Gold's lustre lures Turkish savers

Gold
Istanbul - AFP

From the outside, it looks like any other automatic bank machine on the streets of Istanbul. But rather than notes, this one distributes small pieces of gold.
Gold is hugely prized in Turkey not just for ornamentation or investment by banks but as a secure way for private individuals to hold their savings.
Many people in Turkey -- which has one of the lowest private savings rates among major economies -- keep gold as security for a "rainy day" rather than products offered by banks.
According to estimates, Turks hold some 3,500 tonnes of gold. Banks have sought to capitalise on the tradition by offering accounts denominated in gold.
"We were thinking about putting all that gold back into the financial system somehow, so we decided to create gold accounts for our clients," said Seda Yilmaz, marketing manager of the Kuveyt Turk Bank, the first to do so, in 2007.
"So we bought one kilo of gold, and the demand on the first day was three kilos. It was a very good decision, so we decided to move ahead."
Eight years on, Kuveyt Turk manages 200,000 gold accounts with different products allowing sales by cheque, bank transfer or mobile phone.
Now with the introduction of the first ATMs that issue gold as well as the usual banknotes, consumers can withdraw pieces of gold weighing 1.0 or 1.5 grammes.
The success of the ATMs started a trend, with many other Turkish banks latching on. The volume of gold in their reserves has gone from two tonnes in 2007 to 250 tonnes.
The government has also tried to join the bandwagon with the central bank allowing commercial businesses to hold some of their reserves in gold and opening this up to private investors.
"Thanks to this measure, our sales jumped 85 percent last year," said Aysen Esen, head of a leading gold refinery in the country.
"Over the last two years, banks have taken in some 40 tonnes of gold that people had stashed under their beds. And it's just a small proportion of the reserves."
- 'Huge opportunity' -
Turkey, where the mythical Phrygian King Midas turned everything to gold and Trojan King Priam was said to amass his gold hoard, has historically been a centre for gold mining.
The first gold was mined in Anatolia several millennia before the birth of Christ but until recent years there had been a long break in extraction.
This changed in the 1980s with new legislation facilitating foreign investments, resulting in the discovery of new gold deposits at home.
The extraction of gold has since risen exponentially, from two tonnes mined in 2002 to 33.5 tonnes in 2013. A bright future is assured, with underground reserves estimated at 6,500 tonnes.
"The main reason for this boom is that we still don't have any tax on gross gold transactions, we only pay VAT (value added tax) on finished products," said Ali Bulut chief executive of Turkey's number one gold retailer Altinbas.
"I'm very optimistic in the long run about domestic demand, not only for fashion and jewellery but also for savings."
Even if exchange rate variations have an effect on activity and profits, Turks are the number four global consumers of gold and number two exporters.
"In 2013, recycling, fabrication and consumption (of gold) boosted the Turkish economy by at least $3.8 billion," said Alistair Hewitt, author of a recent report published by the World Gold Council.
"The opportunity is huge. We are only at the early stages here, there is a huge potential.
"It's looking very, very exciting... all that infrastructure allows Turkey to become a gold trading hub within the region."
Made a little jealous by the successes of banks in a market that they once had to themselves, Turkish gold jewellers staked their interest in joining the gold investment industry.
"We are a little bit disappointed. We may need new legislation and have this gold end up with the jewellers instead of the banks," said Sarp Tarhanci of the Istanbul Chamber of Jewellery.
"Jewellers are customer-based, they build trust and good relationships with their clients."
Turkey's performance in 2014 remained strong, according to the latest figures published by the World Gold Council, even if purchases were down on the extremely strong 2013.
2014 demand for gold jewellery of 68.2 tonnes in Turkey was down 7 percent, "slightly more resilient" than the overall global trend of minus 10 percent.
Meanwhile, investment demand of 54.8 tonnes was 46 percent below the previous year's 102.1 tonnes record.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today golds lustre lures turkish savers Arab Today, arab today golds lustre lures turkish savers

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday