Sudden declines in the Turkish lira and the long-standing inflationary environment in the country caused individual investors and companies to direct their savings preferences to precious metals. The Ministry of Treasury and Finance, which wants to prevent the demand for gold imports, imposed tax restrictions on imports from many countries with the restriction decision taken last year.
While this situation caused a major supply problem in the gold sector, the buying-selling spreads in the sarrafiye gold group increased to the highest level in history and a large gap was created between the gold rate stated by the Central Bank of the Republic of Turkey (CBRT) and the market rate.
GOOD NEWS FROM MINISTER ŞİMŞEK FOR GOLD PRICES
In order to prevent the gold supply problem experienced in recent months, the Ministry of Treasury and Finance announced that public banks, including Ziraat Bank, Vakıfbank and Halkbank, will meet the demands of the gold sector. However, as the step in question was not sufficient, the expected good news came from the Minister of Treasury and Finance, Mehmet Şimşek.
In his statement to industry representatives today, Şimşek said; Stating that restrictions on gold imports will be regulated, he announced that normalization steps will be taken soon. Expressing their satisfaction on the issue, jewelery and jewelery industry representatives stated that with the removal of import restrictions, gold prices in physical markets will be equalized with the CBRT indicator rate.
Drawing attention to the effects of the decisions to be taken on gold prices, economist İslam Memiş made the following warnings:
“LABOR COSTS WILL DECREASE UNDER”
“The expected good news for gold has come. Minister of Treasury and Finance Mehmet Şimşek said the following in a presentation: We will normalize gold imports. What does this mean? As you know, a ban was introduced last year to balance imports and suppress the intense demand for gold. This ban Because of this, gold bars in Turkey were sold for a labor cost of 2-3 thousand dollars.
We have been buying gold expensively compared to the rest of the world for the last 1.5 years and we continue to do so. This negatively affects exports. When the world’s jewelery industry came to Turkey, they did not demand gold at fairs because it was too expensive. There was a minimum of 2 thousand dollars and a maximum of 3 thousand dollars of labor. Since the bans on the import side have been continuing for 18 months, a serious process has begun on the gold smuggling side in Turkey and a great chaos has come with it.
IMPORT BAN IS BEING REMOVED
When the bans on gold imports continued, there was a serious supply problem on the gram gold side in the domestic markets. This was reflected in the mint. You cannot find physical gold inside, you cannot give it to the mint. Since the Mint could only mint it in small amounts, there was a serious difference in workmanship in gold coins. The gold market was in a state of serious turmoil.
The Ministry of Treasury and Finance issued a decree and we are giving authority to public banks. It was said that sector representatives who cannot find gold inside will now be able to go to Ziraat Bank or Vakıfbank and get their gold. On this side, the problem was partially solved, but what could not be solved was that it was interesting that the import ban continued for sector representatives and the ban was lifted for banks.
Afterwards, there was a relative normalization in labor wages on the mint side, but currently there is no problem on the physical gold side, whether it is gold bullion or gram gold and quarter gold. Everything is stable, but we continue to buy gold at high prices and high exchange rates only in Turkey. When the gold import ban is lifted, the exchange rate difference between the exchange rates you see on television and the free market will also be eliminated.
Mehmet Şimşek, who made a statement on this issue today, stated that the process to lift the import ban will be initiated, but did not give a clear date. This means very important things for the gold market. First of all, it will bring about normalization in gold markets, smuggling will end and prices will normalize. At least the 3 thousand dollars worth of labor inside will be eliminated.
“Our damaged reputation abroad due to smuggling issues will be improved.”
