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【Istanbul, Tü】Türkiye’s Jewelry Industry Struggles Amid Soaring Prices, Import Quotas

Editor’s Note

**Editor’s Note:** Türkiye’s jewelry sector faces a deepening crisis as soaring gold prices and strict import quotas drive a sharp decline in exports, with January figures down 59% year-on-year and nearly 60% of workshops reportedly affected.

Türkiye’s jewelry industry struggles amid soaring prices, import quotas

Fehmi Canli, co-owner of Turkcan Jewelry, depends entirely on foreign orders.

“Export orders have basically stopped,” he told Xinhua. “A few clients came recently just to say goodbye. They told us they won’t be able to come to Türkiye.”

His atelier reflects a broader crisis gripping the country’s jewelry sector, where high gold prices and strict import quotas have forced many exporters to scale back or halt production.

In January, Türkiye’s jewelry exports fell 59 percent from a year earlier, according to the Exporters Assembly. Sector representatives say nearly 60 percent of workshops and factories have closed or face closure.

According to the Istanbul Jewelry Chamber, the price gap between gold in Türkiye and international markets has widened sharply since the quota was introduced, at times reaching 7,000 U.S. dollars per kg and still hovering around 4,000 dollars.

The fallout extends beyond jewelry. Tourism, transportation, and retail all feel the pinch. Sectors that thrived on business tourism are now seeing fewer visitors, creating broader economic consequences.

Mustafa Atayik, chairman of the Istanbul Jewelry Chamber, said the slowdown marks a sharp reversal for an industry that had expanded rapidly in recent years.

“Türkiye accounted for around 7 percent of global jewelry exports in 2023, up from roughly 1 percent in 2016-2017, with ambitions to reach 10 percent. Now, the share has fallen to around 5 percent,” he told Xinhua.

The uneven recovery is evident in key markets. U.S. imports of Turkish jewelry fell more than 40 percent to 409.8 million dollars in 2025, according to data from the Turkish Exporters Assembly. European buyers, including those in Italy, are also reducing orders amid uncertainty, illustrating how domestic policy and global market dynamics intersect.

Industry leaders are urging adjustments to quotas and support for local gold production.

“We need a balance, a way to protect the domestic market while keeping exporters competitive,” Atayik said.

He warned that without swift measures, Türkiye risks losing its place in the global jewelry supply chain, alongside the jobs and economic benefits the sector generates.

“With advanced technology and the right policies, this potential could rise up to 12,000 tons, equivalent to nearly 2 trillion dollars,” Yucel said. “A 10 billion-dollar investment could boost annual production from 28 tons to 100 tons, helping both miners and the jewelry industry thrive.”

Atelier Silence in the Grand Bazaar

The clatter of hammers, the hum of polishing machines, and the scent of molten gold have faded from once-bustling ateliers in Istanbul’s Grand Bazaar. Benches now stand empty, tools lie untouched, and workshops have become quiet monuments to an industry under severe strain.

Global gold prices have surged amid geopolitical tensions and market volatility, and exporters say Türkiye’s gold import quota, introduced in 2023, has added to the pressure.

Licensed companies and exporters are limited to 12 tons of unprocessed gold per month, while domestic prices hover thousands of dollars above international benchmarks.

Türkiye produced just 28 tons of gold in 2025, far below the sector’s needs, forcing a reliance on imports totaling around 150 tons.

“The quota has ruined us,” Canli explained. “When production stops, it’s not just the owners who suffer. Workers lose their jobs, and factories close. That’s the real damage.”

Despite current struggles, Türkiye’s gold reserves still hold significant untapped potential, according to Hasan Yucel, president of the Turkish Gold Miners Association. He noted that the country’s known gold deposits of around 6,500 tons are valued at more than 1 trillion U.S. dollars at today’s prices.

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⏰ Published on: February 15, 2026