Turks take out bank loans to buy gold for investment purposes

As citizens believe the upward trend in gold prices will continue, they take out loans and buy gold for investment. The decline in deposit interest rates, coupled with uncertainty in exchange rates and limited investment opportunities, causes citizens to prefer gold, which they see as a safe haven.

One of the shopkeepers in the world famous Grand Bazaar emphasized that the citizens invested heavily in gold during the pandemic process and said “the discount on loan interest has directed citizens to gold. Citizens are buying gold with loans received from banks and our sales have increased compared to the period before the pandemic outbreak. When citizens started buying the average price was 300 thousand TL per kilogram, now the price of the average kilogram has reached 400 thousand TL.

Obviously the demand for physical gold has increased a lot and production is higher than normal. Citizens with expectation of a continuous rise in gold prices use cash advance with installment via their credit cards and invest the money in gold.