Will Demand for Gold Continue in Turkey? Experts See Rise in 'Under-Mattress' Savings

WISE NEWS PRESS / ISTANBUL, TURKEY — Nov. 11, 2025

Fluctuations in gold prices are closely monitored by Turkish citizens, as Turkey remains one of the world's highest consumers of gold after India and China.

According to Turkish Central Bank (TCMB) Governor Fatih Karahan, citizens' under-the-mattress gold savings in Turkey are estimated to be around $400–$500 billion. Experts believe that due to both distrust in the economy and the cultural value placed on gold, citizens’ demand for physical gold in Turkey will continue to increase.

A Material and Cultural Store of Value

Speaking to DW Turkish, Prof. Dr. Sinan Alçın, a faculty member at Istanbul Kültür University, states that for Turkish society, gold is not a short-term investment tool but a long-term savings vehicle that provides a sense of security.

Prof. Alçın also notes the historical significance of gold in societal life: "For countries like ours, which have a foothold in the Middle East, gold is given and received as the most valuable gift in many areas of life, from newborns to young people getting married. So, in addition to its material value, it also has a cultural value."

Tax Exemption Fuels Interest

Prof. Alçın also points out a less-discussed aspect of gold accumulation: owning physical gold is not subject to any tax audit within national borders.

"Considering the lack of appetite for paying taxes in traditional societies, we can say that gold being a tax-exempt investment vehicle is also an important reason for the high interest from citizens," says Alçın. He adds that since Turkey is a net gold importer, increased domestic demand for gold leads to increased gold imports, fueling dependency on foreign currency in the economy.

Prices Drop, Buying Demand Rises

The price of gram gold in Turkey surged from 3,000 TL at the start of the year to 5,900 TL in October. Following profit-taking at that level, gram gold is currently trading around 5,500 TL. Globally, the price of gold per ounce, which started the year at $2,624, rose by almost 70% to $4,350 and is currently trading around $4,000.

Individual investors in Turkey, closely monitoring these developments, have begun flocking back to jewelers following the limited retreat in gold prices. The general market perception is that gold prices will continue to rise, and the price drop is seen by citizens as an opportunity window for a new wave of buying.

Central Banks Also Turning to Gold

The demand for gold is increasing not only among individual investors but also among global central banks. The customs tariffs imposed by US President Trump, rising geopolitical and economic uncertainties in major gold buyers China and India, and the upward risks in inflation continue to fuel demand for gold.

According to the World Gold Council's third-quarter report, central banks made net purchases of 220 tonnes in the third quarter, a 28% increase from the previous quarter. Kazakhstan (18 tonnes), Brazil (15 tonnes), and Turkey (7 tonnes) were the largest buyers during this period. Central bank demand is expected to reach the 750–900 tonne range for 2025 overall.

Economist Dr. Cüneyt Akman tells DW Turkish that demand for gold in Turkey will continue to remain high, as it has in every period. Dr. Akman states that both citizens and central banks increased their gold purchases following the 2008 financial crisis and the Covid-19 pandemic. "Because trust in the world's monetary system is weakening every day. For this reason, central banks, institutional investors, and ordinary citizens are turning to gold to protect what they have," he says.

The Ultimate Hedge Against Chronic Inflation

Dr. Akman points out that Turkey has lived with a problem of chronic inflation for the last 50 years. While countries that experienced hyperinflation of up to 1000% managed to solve this problem in the last 50 years, the Turkish economy has failed to curb high inflation.

Therefore, physical gold is perceived as the greatest guarantee for preserving savings within society. Cüneyt Akman emphasizes, "Turkey is currently the only country in the world with constant inflation. That's why the public views and will continue to view owning gold, subconsciously, as the ultimate hedge against never-ending inflation."

One of the World's Largest Individual Gold Reserves

According to an analysis note published in September by QNB Finansbank economists, the amount of under-the-mattress gold in Turkey increased by 51 tonnes in the first 8 months of 2025, reaching 3,100 tonnes. This corresponds to an economic magnitude of approximately $400 billion. The QNB analysis notes that Turkey's total gold stock has reached 4,210 tonnes, representing a wealth of $500 billion. While about 10% of this wealth is held by banks, up to 90% is held by citizens as "under-the-mattress" savings—kept at home or in safety deposit boxes.

QNB economists suggest that the closure of currency-protected gold deposit accounts and changes in interest rates could accelerate the trend of under-the-mattress gold once again. They conclude, "Even if annual increases are limited, the under-the-mattress gold stock in Turkey continues to be one of the world's largest individual gold reserves."

TCMB Governor Fatih Karahan also estimated the under-the-mattress gold stock in Turkey to be in the $400–$500 billion range during a session of the Turkish Grand National Assembly's Planning and Budget Committee in early October. Karahan pointed out that the price increase over the last year led to an appreciation of over $100 billion in gold assets, adding, "The reason for such a high gold stock in Turkey is the inflationary experience inherited from the past."

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