Editor’s Note
This article examines the growing trend of Turkish citizens turning to gold investments ahead of local elections, despite government efforts to curb inflation. It highlights the tension between President Erdogan’s economic policies and public sentiment, as individuals like Hatice Kilic seek to hedge against potential lira collapse.
Precious Metal: Turks Buy Gold Again Before Elections – Against the Government’s Will
President Erdogan fails to curb inflation ahead of local elections. His compatriots seek to hedge and speculate on a lira collapse.
Ozan Demircan, Judith Henke
29.03.2024 – 11:29 Uhr
Even demand for gold jewelry in Turkey rose significantly in 2023.
Photo: imago/Frank Sorge
Frankfurt. Hatice Kilic, a farmer from the village of Yediburunlar in southern Turkey, needs gold. Not as jewelry, but as an investment. The 38-year-old’s agricultural business only supports herself and her family. An inheritance has now brought her over 600,000 lira, around 18,000 euros. Fearing high inflation, she wants to invest the money safely.
However, she could not buy the precious metal at her bank. The reason given was that there was none available. And dealers sold gold at a significant premium to the world market price, currently 2,051 euros per ounce.
The reason is Turkey’s economic situation. Shortly before the local elections this Sunday, the country’s central bank raised the key interest rate to 50 percent to combat price increases. Despite this, the inflation rate stands at over 67 percent.