Gold And Silver Worth $1.4 Billion Carried In Baggage From Turkey To Iran, UAE And Middle East in September

Tyler Durden's picture

Submitted by GoldCore Gold Bullion

Gold And Silver Worth $1.4 Billion Carried In Baggage From Turkey To Iran, UAE And Middle East in September

Today’s AM fix was USD 1,679.00, EUR 1,313.05, and GBP 1,050.82 per ounce. 

Friday’s AM fix was USD 1,708.25, EUR 1,325.77, and GBP 1,061.29 per ounce.

Silver is trading at $31.05/oz, €24.39/oz and £19.51/oz. Platinum is trading at $1,550.32/oz, palladium at $597.38/oz and rhodium at $1,070/oz.

Gold dropped $35.70 or 2.08% in New York on Friday and closed at $1,678.00. Silver hit a low of $30.789 and finished with a loss of 4.01%. Gold and silver were down nearly 2% and 3% on the week.

Cross Currency Table – (Bloomberg)

Gold edged up a bit on Monday, limiting the fall after the better than expected US jobs number sent the yellow metal downward to a two month low.

If the US Fed doesn’t need to embark on more stimulus measures this may limit the yellow metal’s appeal with investors who see continuous money printing by central banks as increasing inflation and debasing currencies.

The US dollar limited gold’s rebound as it hit its highest in 2 months as investors parked money there before the US election.

This week there is an ECB policy meeting on November 8th and also a key gathering of the Chinese Communist Party.  

US Economic highlights include ISM Services at 1500 GMT today.  Wednesday’s data is Consumer Credit, Thursday Initial Jobless Claims and the Trade Balance and Friday Export & Import Prices, Michigan Sentiment, and Wholesale Inventories are published. 

Turkey’s trade deficit has been shrinking and the country has enjoyed the best bond rally in the emerging markets this year due in part to the contributions of airline passengers transporting gold in their baggage.

Statistics from Istanbul’s 2 main airports show $1.4 billion of precious metals were registered for export in September.  

XAU/USD Currency, 1 Year – (Bloomberg)

Iran is Turkey’s largest oil supplier and Turkey has been paying for the oil not only with liras but also with gold bullion. Turkey exported $11.7 billion of gold and precious metals since March, when Iran was barred from the Society for Worldwide Interbank Financial Telecommunication, (Swift) making it nearly impossible for Iran to complete large international fund transfers. Of the $11.7 billion, $10.2 billion or 90% was to Iran and the United Arab Emirates, according to data on Turkey’s state statistics agency’s website.

Turkey’s current account deficit is second in the world at $77.1 billion or 10% of GDP while the US currently holds the top spot.  

The problem with Turkey switching from a net importer to a net exporter of gold bullion this year is that the foreign trade data is misrepresented. Turkey’s use of precious metals is a key factor to help turn around its nation’s current junk bond rating status.

We mentioned before the government’s efforts to move the $302 billion in privately held gold, into government banks to increase the money supply in the economy.

 “October data will be very critical” as the US urged Turkey not to export gold to Iran or the UAE, “which means indirectly to Iran,” Ozgur Altug, chief economist at BGC Partners in Istanbul, said in an e-mailed report yesterday.

The increase in precious metal exports accounted for three quarters of the 14% one year gain in total exports in the first nine months, Gulay Girgin, chief economist at Oyak Securities in Istanbul, said in an e-mailed report yesterday.

“If you look at Turkey’s trade figures without gold, it doesn’t look that great,” Gizem Oztok Altinsac, an economist at Garanti Yatirim, the investment unit for Turkey’s biggest bank, said by phone yesterday. “I think the analysts are paying a lot of attention to this, but at the end of the day, the bottom line is the current-account deficit, and that’s getting better.”

For breaking news and commentary on financial markets and gold, follow us on Twitter.



Gold edges higher as dollar retreats – Market Watch 

Gold firms after jobs report sparked sell-off - Reuters

Hedge Funds Reduce Bullish Bets Most in Five Months - Bloomberg

Gold Traders Most Bullish in 10 Weeks on Stimulus - Bloomberg


Bundesbank Continues Golden Damage Control – Zero Hedge

Election outcome will have no impact on the price of gold – The Daily Reckoning

Keiser: 'Barack Obama is clueless. Mitt Romney will bankrupt the country' – The Independent

The Great Precious Metals Managed Retreat – Resource Investor

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Vooter's picture

"If the US Fed doesn’t need to embark on more stimulus measures this may limit the yellow metal’s appeal with investors..."


GetZeeGold's picture



Here's another LOL


Gold And Silver Worth $1.4 Billion Carried In Baggage From Turkey To Iran, UAE And Middle East in September


That's just the stuff they know about.

d edwards's picture

If you tried to do that in the US the TSA would steal it all!

Jreb's picture

And force you to miss your flight while being detained in a tiny glass cubicle for complaining.

A Nanny Moose's picture

101 reasons why a boat is a better method of transporting your property...

caimen garou's picture

but but ben and the eclownamist say gold is not money! oh i get it, it's just for trading. I'll give you some shinney stuff for your black stuff!

GetZeeGold's picture



It may not be money.....but the barbarians still dig it. That and a good cup of mead.

caimen garou's picture

so thats why my neighbors call me barbarian, and I thought it was because of my beer belly and bad eating habits!

ziggy59's picture

Thats how one stacks!

Matt's picture

1) give people $15000 worth of credit for each ounce of gold they deposit at the bank

2) take the gold and buy oil with it

3) charge compounding interest on the money people borrow with the credit cards that are "backed" by gold (that has been sold

4) mad profit $$$

HD's picture

DHS would tell the TSA to look for gold and silver but they are already far too easily distracted by shiny things...

JPMorgan's picture

Sanctions bitchez!

Just as well gold is only a tradition ah.

Miss Expectations's picture

So Iran's "default option" is to have a precious metals currency backed by oil and defended with uranium.  I wish them luck.  Truly.

francis_sawyer's picture

I'm sure Netanyahu is REALLY pissed off to hear about this... Let the bombs fly (in the name of PEACE & STABILITY)...

forwardho's picture

This story was out two weeks ago. Fails to mention that Q/Q growth fell to nil in september. Have they found a new conduit for the funds? or perhaps a new commodity(s) weapons and missle technology are fungible too.

JustObserving's picture

Anglo-American banking cartel has a full-fledged war going against gold and silver.  Many Western nations like Germany have been prohibited from buying gold or even getting their gold back.  Any manipulation in gold and silver is not only ignored but encouraged. 

What happened to Libya's 143.8 tonnes of gold?

Gold and silver are the kryptonite of fiat currencies. When the full magnitude of the $140 trillion US debt and unfunded liabilities sinks in ($1.18 million per US household), the dollar will sink.  Until then the war on gold and silver will continue.

rsnoble's picture

Does this mean blow up Turkey too?

DavosSherman's picture

Lucky for them they didn't have to go past TSA who would have stolen it and their fucking iPad.

apberusdisvet's picture

The key metric for gold going forward is on the supply side.  We're past peak gold folks.  Look at the latest shitty earnings reports for Barrick and Newmont.  Grades of mined ore have drastically declined in just the past 10 years. The situation will only get worse as the costs of mining (especially labor, water and diesel) escalate and more and more projects are shelved or shut down.  Currently, not quite 50% of all global production isn't available to the "free" market; it goes directly to sovereign treasuries.  Further, the growing labor strikes in South Africa can only be resolved by increasing mining costs and it will not take long for the effects to be seen globally.  Factoring in a legitimate return on capital, the true break even point for gold mining is right around $1500/oz.  Whenever I see an article that claims gold will go down to $1100/oz or lower, I have to chuckle; aint gonna happen, whether or not we have inflation or deflation.

francis_sawyer's picture

Notwithstanding any paper manipulation, all the excess from the "clownbucks" that are being printed eventually make their way into the hands of those who can systematically extract PHYSICAL from the open market... In the meantime, jackboots will be held firmly down on the necks of the peons...

This game won't stop until granny's last silver butterknife from the cupboard (the one that even SHE forgot she had) is handed over to buy a tin can of catfood...

THE DORK OF CORK's picture

Turkey is about to blow up...................its diesel consumption suggests far to much activity relative to Greece for example.......................

Turkey is a success because of Euro capital flight looking for a return rather then safety..............but there is no return.


UK Ford transit has unwisely moved from Southampton to Turkey - but soon UK customers will not be given credit to buy Turkish Ford vans..........


Istanbul was so very busy this summer

Yet Dublins streets have never been as quiet.


Is there a better return in Ireland ?

I think so.

Matt's picture

The street cars seem to be on dedicated lines, that is why there are no cars. Plenty of cars going across the street car lines at the intersection, and a decent amount of people out walking around on such a beautiful day.

THE DORK OF CORK's picture

Matt - I live in Ireland , believe me Dublin and Cork of 2006 was a different planet.

(Dublin traffic has always I repeat always been busy since the Middle ages)

I have been to Turkey - in particular eastern turkey is a second or third world place.

Istanbul is of course a crossroads but much European capital is exported to Turkey simply because for example the Ford transit factory pays 4 euros a hour.

Indeed just before the bust they bussed in Turkish workers to build a road near Cork so as to keep the labour costs down as the non labour (energy costs) began to rise - their reduced wages was exported out of the country and the credit banks filled the demand hole created with credit for grot consumption.


These wage arbitrage games have nothing to do with rational capital creation - it is to sustain the banking leverage withen the system.

Indeed the leverage is why we have such malinvestment as there is no rational domestic wage demand signal.

Monedas's picture

Let's arm the Kurds and the Armenians .... EOP  Equal Opportunity Payback !     Turkey Jerky  .... they could use their fig and apricot drying nets to process all the deboned cadavers ?

steve from virginia's picture


Whip out that calculator ... $1.4 billion in gold ... 80,000 oz ... 25 tons in one month. +/-2000 pounds out the door every single day.


Q: How long before Turkey runs out of gold?


Q: What does Turkey get back for the gold? Crude oil. How does that 'help' Turkey's current account, again? This is the 'nothing for something' trade: as soon as the crude hits Turkey's shores it is burned up by stupid Turks wandering like flying dutchmen from gas station to gas station. At the end of the day there is nothing to show for a ton of gold but smog


... the gold is better dumped into the ocean.


Gold => crude => burn up in cars driving in circles => bankruptcy. Definitely the most stupid trade ever (except for the gold => F/X => fight a losing war in Vietnam => bankruptcy, that was OUR incredibly stupid trade).



DutchR's picture

From wiki,

"Some birds, especially corvids and parrots, are among the most intelligent animal species; a number of bird species have been observed manufacturing and using tools, and many social species exhibit cultural transmission of knowledge across generations."

No mention of turkey's playing geese tough....

/end of line



Vlad Tepid's picture

Also, the more intelligent the animal, they more they are attracted to shiny stuff: rooks, parrots, me.  On the other end of the zoo, we have slow animals like fluke worms, koalas, and the Bernanke who just yawn when they see "tradition" glittering.  Stacking is an evolutionary adaptation, bitchez!

Motorhead's picture

Aw, come on, that's bull shit.  Gold isn't money.  Bernanke said so.