An unprecedented 58 billion Turkish Liras ($3bn) was invested in gold in the first quarter of 2023 in Turkiye, according to the World Gold Council (WGC).
Bar and coin investment in Turkiye reached phenomenal levels in the first quarter, breaching 50 tons for the first time on record, said the council’s latest edition of the Gold Demand Trends report.
Demand increased fivefold on an annual basis and was 32 percent higher compared to the previous quarter. “Turkish investors continued to seek the safety of gold.”
“Turkiye’s Central Bank was again a big buyer of gold during the quarter;official reserves rose by 30 tons.”
Combined purchases of 45 tons in January and February were offset by a sale in March, the first since November 2021, the council said.
“Some 15 tons of gold was sold into the local market following a temporary partial ban on gold bullion imports. Overall, this lifted total gold reserves to 572 tons, 34 percent of total reserves.”
Jewelry demand in Turkiye was 20 percent higher year-on-year at 9 tons, the report also said.
But the quarterly comparison showed a 10 percent drop as demand was affected by the devastating earthquakes that hit the country in February, it added.
“Investment motives continued to fuel jewelry demand during the first quarter.”
Globally, gold demand declined by 13 percent on an annual basis at 1,081 tons in the first quarter of 2023, the WGC said.
Demand from central banks experienced significant growth during the quarter.
Official sector institutions remained keen and committed buyers of gold, adding 228 tons to global reserves.
Bar and coin investment gained 5 percent year-on-year to 302 tons, while global jewelry consumption was virtually flat at 478 tons.