Turks Just Bought The Most Gold Ever As Lira Tumbles

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?


DelusionsCrowded Nov 14, 2017 8:55 AM Permalink

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 ? 

Justin Case DelusionsCrowded Nov 14, 2017 11:02 AM Permalink

And perfer relative povertyTheir 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.

In reply to by DelusionsCrowded

rtb61 Nov 14, 2017 8:38 AM Permalink

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.

DisorderlyConduct Nov 14, 2017 8:00 AM Permalink

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...

yogibear Nov 14, 2017 7:14 AM Permalink

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 yogibear Nov 14, 2017 10:36 AM Permalink

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.

In reply to by yogibear

Lore Nov 14, 2017 6:18 AM Permalink

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. 

sekhars Lore Nov 14, 2017 6:41 AM Permalink

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

In reply to by Lore

jeff montanye Lore Nov 14, 2017 6:34 AM Permalink

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. 

In reply to by Lore