Turks Just Bought The Most Gold Ever As Lira Tumbles

Tyler Durden's picture

Since President Recep Tayyip Erdogan installed himself as 'Sultan for life', the Turks appear to have had a dramatic change of heart towards the barbarous relic...

The Turks have never imported a greater value of gold than in the last 12 months...

Addditionally, as Bloomberg reports, Bar and coin purchases, a measure of investment demand, were 47 metric tons so far in 2017, compared with 14.8 tons in the same period a year ago, according to a report from the World Gold Council published Thursday.

The weak lira and “President Erdogan’s pro-gold comments in November last year continued to lend support to the market,” the gold council said.

But it's not just the average Turk who is buying gold, Turkey’s central bank is also buying gold, increasing purchases by 30.4 tons during the third quarter.

While the central bank has cited a good old-fashioned diversification policy, some analysts speculated that the country could be shoring up reserves amid rising tensions between Turkey and its traditional Western allies.

A year ago, President Recep Tayyip Erdogan urged Turks to prefer gold to the U.S. dollar as a savings vehicle, and asked the central bank to support that policy.

And gold is doing exactly what it should do as faith in fiat falters.

The question is - just like in India - how long before Erdogan 'dictates' an end to gold imports, imposes tariffs, or confiscates the precious metal?

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saldulilem's picture

where do central banks buy gold from?

Jack Oliver's picture

They steal it - Ukraine - Libya - WTC etc etc

1 Alabama's picture

other central banks, its a paper promise in name only and based on full faith and credit. The formula used is, he who contols the most gold, makes the most rules. once asseyed delivery enters the equation, thats when talk of war starts. Need to start a war for some reason? just use breach of contract as the method.

BobEore's picture

As you are asking the same exact question which you posed a couple of days ago... apparently did not get the answer you were looking for... within
let's go over that agin ...

using the example in front of us - a country in the muddled east - with a big balance of payments problem, a deteriorating economy... and citizens with a long tradition of using gold as a hedge against devaluations.

The country in question -Turkiye - has been under control of a 'neo-liberal' style islamist regime for the past decade or so. For various reasons, that regime has been forced to use its' reserves to take care of basic necessities - like importing petroleum - and found a number of ways to disguise the fact.

Ronan Manley has done a few good pieces detailing the way that central banks make 'adjustments' in both the method of calculating gold reserves, and the manner in which 'gold' is even defined! The TCRB has been one of the most 'creative' in this =

"we can proceed step by step to dissolve some of the murk and mystery surrounding the topic of Turkey's gold holdings during the critical period of 2011-2014. A period which is marked by the influence of a modern work of alchemy called the "Reserve Option Mechanism" - "ROM." The standard spiel about which can be read in just about every reference to Turkish Central Bank operations:

"The ROM is a mechanism that allows banks to voluntarily hold a certain proportion of their Turkish lira (TL) reserve requirements in foreign exchange (FX) and/or gold. The amount of FX or gold that can be held per unit of Turkish lira is called the reserve option coefficient (ROC). For example, if the ROC is 2, banks must hold 2 liras worth of FX or gold per 1 TL reserve requirement if they wish to utilize the ROM facility."

I started paying more attention to this device of "adding liquidity to the system." Indeed, one particular sentence in the Jansen Bullion Star Blog post which had started the whole DEVIOUS DERVISH ball rolling came back to mind... "In the chart we can clearly see how much gold is added to the CBRT balance sheet over the years without the CB having bought a single gram."

"Gold deposit accounts increased substantially by pulling physical gold into the financial system" says our TCB presenter. They did indeed - right from the moment the new "ROM" policy came into place. But what - inquiring minds are still as likely to ask now at the end of 2016 as much as they were two years previously- are "gold deposit accounts?" For the bankers, their policy overlords, and the powers that be in Ankara, their version of the story remains unchanged."

All of which is to say - the central bank - the government - and the media conspired in a program to allow the banks to take in real gold from their customers, send it on to the refiners, from where it reached the TCRB coffers, replaced the real gold in those customers accounts with a XAU paper credit in depreciating lira,

allowing the government access to large amounts of real gold which it proceeded to sell to Iran for oil, all the while pretending to be bringing in more gold into reserves which were actually depleting of everything EXCEPT account entries listing paper gold.

I discussed the inner workings of the scamin the 3 part Devious Dervishes of Turkish Banking series some years back - https://storify.com/SuaveBel/the-devious-dervishes-of-turkish-banking - but only cottoned on to the real nature of the scheme... and it's explosive implications for the present.. in the past year, when, in preparation for what is JUST ABOUT TO EXPLODE IN THE FACES OF MULLAHS/PHONY CALIPHS/and ORANGE-HAIRED POTENTATES... literally any day now - I wrote in https://storify.com/SuaveBel/gold-for-oil-oil-for-blood-part-three

"we began "lining up the dots which lead from the days when Turkish political potentates filled their 'shoeboxes' with payoffs from gold trading for oil with Iran, to when they filled up same with the profits from looted oil and antiquities sent home by their jihadi proxies from Iraq and Syria."

The whole geopolitical ball o wax coming round at last full circle /Gold/Oil/Blood... and the $power.

But let's not talk about that stuff... look at the facts of the case, or acknowledge that ol skool journalist of the renegade kind sometimes rip the mask offa the face of the 'alt-media' flavor of the ONEMEDia ... EXPOSING a Munch-like silently-screaming bunch o fun-luving guys takin their readers or a ride... to the tumbrils, popcorn n koolaid - on da house!

oh! And I hope you get the message this time freeend...
"central banks" get their 'gold' by stealing from their citizens.., then trading it for real stuff which they can tax to the sky and make incredible profits from by merely hitting a print button! Why 'buy' what you can git for nuthin?!?!

Fourth Horseman's picture

Are they buying shitcoin?



eclectic syncretist's picture

Erdogan and his wingmen can't sit on a pile of bitcoins with weapons, cigars, beverages, unremovable shit-eating grins, ect.

Omega_Man's picture

buy more gold .... bitcoin is for zios, another manipulation stunt...sashi yakamoto or what ever the fuck his 'name' is, is a CIA zio shill

Infinite QE's picture

Some people have sure made a fortune on Bitcoin.

However, one must look at the whole purpose of something like Blockchain. A ledge of all transactions.

Now, who would benefit from having that? Yes, yes, yes, NSA-encrypted yada yada yada. But who is the NSA?


Silver Savior's picture

Fiat currency is not a fortune. It's an illusion of wealth.

screw face's picture

...moar pump and dump! #FTFD!...bitchezzz


...what grid?

iLLivaniLLi19's picture

Why would the Zionists create a cryptocurrency that lets intelligent but poor goyim participate/stakehold before large insitutional investors have a chance to? Cryptogeeks are mostly White or East Asian. Jews also created their own crypto that's kosher and for Jews only.

Lore's picture

Re: "The question is - just like in India - how long before Erdogan 'dictates' an end to gold imports, imposes tariffs, or confiscates the precious metal?"

How is that "the question?"  In the monetary universe, gold is demonstrably the best independent store of wealth, whether for nation-states or individuals.  Put differently, high reserves might be construed as a measure of personal and state sovereignty, and the two are complimentary, not at odds.  This direction - encouraging investment in real money - seems intended to undermine the petrodollar at all levels of Turkish society. 

jeff montanye's picture

and i don't recall the indian government recommending to its citizens and central bank that they stock up on gold.

it does seem that all the posturing, war crimes, surveillance, sanctions, whatever that the u.s. empire has come up with ostensibly to, among other things, protect its vaunted "petrodollar", have in fact weakened it and hastened its demise.

these geniuses that rule us are actually pretty stupid in a lot of ways.  of course many of them don't give a shit about our country; their allegiance is about 6,000 miles east of d.c.


SickDollar's picture

your point is bogus

 the key here is that more and more CB are buying gold , except for the Fed,  ECB. amd BOJ


pc_babe's picture

Exactly. What doesnt make sense ... with all these Sovereigns now buying in not so small quantities, relatively simultaneously ... why is gold price stuck?

Pearson365's picture

Why is the gold price stuck?

100:1 or more in synthetic bullshit bullion paper crap rehypothecated GLD and other scam gold products.

1952angus's picture

Stock market goes down and every time it does so does gold, funny coincidence that? 

Lore's picture

@ SickDollar: To the extent that the Euro and Yen can reasonably be regarded as planks in the petrocurrency sphere, like sidecars to a motorcycle, it seems to me that your observation underlines my point.  What to you seems "bogus?"

sekhars's picture

That only happens In US - they  already stealing money by paper manipulation and had confisication in 1931?  no one can confisicate gold from people of India. Govt owns 450 tons and people have 22000 tons.  Tariffs  is only 10 percent which reflcts in gold price in India when you buy or sell. Just don't read non sense on media and beleive that

DisorderlyConduct's picture

"No one can confiscate..."

Uhm. Ok. But follow me here. Who has the gold? Who has the guns?

End of lesson. 

Jack Oliver's picture

We are heading for a NEW world - A GOLD world - led by China and Russia !!

Pearson365's picture

Who in Russia is buying gold besides the central bank?  Anyway they're joining the old gold world, India.

Justin Case's picture

If gold is not money, then we had better identify a viable hard-money alternative … and fast!

Silver Savior's picture

Just as I thought since 2013. Stack high and stack proud!

c2nnib2l's picture

Stupid ! Same as Russians and Chinese they should buy shitcoin

yogibear's picture

The central banksters will keep issuing paper gold shares to dilute physical gold. Thousands of paper gold ounces per physical ounce of gold soon.

Justin Case's picture

When people/banks demand physical gold at the price of paper gold @ the Crimex they will realize there is none available. This will make the Crimex price of gold irrelevant and real prices will be set by SGE where there is only physical gold traded for cash only settlement. At GLD only clients that hold moar than 100,000 shares can ask for delivery, so GLD most likely has margin on the shares, b/c it moves the price of gold when people move into the shares. Prob not 1:1. When GLD sells off the price of gold is impacted as well. PM miner shares are very under valued and out of favor, so if yoar looking for value in the oversold area, it's PM stocks right now.

silverer's picture

More pressure on the fake supplies than ever. Thank you Turkey.

Debugas's picture

looks like it have been decided that international trade is going to be conducted in gold instead of USD

Justin Case's picture

trade is going to be conducted in gold instead of USD

No there will be a supported currency by gold for trade. Gold will act as the foundation to how low one can move their currency to have an advantage in global trade across a basket of currrencies..

Sebul's picture

Is the self declared ruler of the islamic world planning to install a gold backed currency like the islamic law wants to see?

DisorderlyConduct's picture

Wait, what? Erdogan is promoting gold purchases? Just a year ago he was telling people to sell gold and buy lira - to prop it up. Right after the faux coup...

Now the lira is dropping again and he's promoting gold? I better stop or he's sending his guys to beat me up...

Miss Informed's picture

Nothing like a tyrant who can’t make up his mind.

quasi_verbatim's picture

Barbarian relic she goin' back home. Bitshit be dipshit in Erdoland.

rtb61's picture

I would be suspicious that are going to fudge on western debt and make a major shift towards Russia and China, hence gold. I am not sure how much longer Turkey will remain in NATO and it looks like with the formation of an EU army, the EU wont be in NATO much longer (USA kind of went too far in the war mongering bullshit to sell arms and munitions and with the UK out (the US partner in crime, when it comes to promoting war in order to sell arms and munitions) of the EU, it became much easier for EU to push NATO and the US out of the EU.

The US was stupid, the knew the NATO bullshit had been exposed, they new the promotion of war to sell arms and munitions to demand countries spend around 25% of their income taxes on it, was all over the internet but they still tried to push the scam. Assuming arrogance and hubris would push it through, the EU countries weren't saying much and sort of going along with it. Just as they were planning to get out of the scam in the background, after the had secured their computers from US spying or course.

DelusionsCrowded's picture

Nice idea but unfortunity all Western States are under Msonic control . Everything else is just theatre for the sheeple to keep them out of state business . 

DelusionsCrowded's picture

I wonder how much of Turkey Currancy value is from European tourism and remittences ? Say 50 % . I can't think of anything Turkey makes or builds that anyone needs ? Dryed figs ? 

Miss Informed's picture

Incirlik. Bosporus and Dardanelles.

DelusionsCrowded's picture

But anyway , I think Turks like most Muslems and many Westerners are horified at what the West has beocme And perfer relative poverty to creating families in the twisted, weird deeply neurotic pointless West . 

Justin Case's picture

And perfer relative poverty

Their not all poor, but most mericas are, hidden behind the veil of debt. The collapsing cities, people on food stamps, retiries growing, no pension funds, poor employment prospects, drug problems, national debt out of control, infrastructure delapitated, military spending out of control.

Visiting these countries you call poor gave me a different perspective on what is valuable and it isn't material things. It's their quality of life as people and family. West puts value on material things that they throw out. Western families are broken and the kids of those families are also broken, but we don't see it b/c we have nothing to gauge it against, unless you travel to those countries and see for yoar self what they value and how they treat you.

Justin Case's picture

Narcotics. His son is in it big time, The best hashish used to come from Turkey. The volume was mainly from Kabul, Afganistan. They smoke it openly for years. There was a great movied called Midnight Express about an American getting caught smuggling the dope out and gets caught, then how he escaped. Based on a true story.

Herdee's picture

They're going to trade in Rubles and Yuan. Many others will do the same. Direct currency trading by-passing the Dollar.