Citizens flocked to jewellers across Turkey following a sharp decline in gold prices triggered by the war launched by the US and Israel against Iran on Feb 28.
In İstanbul’s Grand Bazaar, the country's most significant informal financial hub, experienced near-stampede conditions. Some jewellers posted signs on their windows stating they had run out of gold.
Similar crowds were reported at Kuyumcukent, a major jewellery mall located in the Yenibosna district on the outskirts of the metropolis.
In the northwestern province of Sakarya, a jeweler said the surge in demand quickly drained their stock. "About 2 kilograms of gold arrived today. It arrived at midday and sold out in a short time," he said as quoted by local the outlet Halk54.
However, some citizens suspect that jewellers were intentionally withholding stock to wait for higher prices. "We came to buy gram gold, but there is none left. I do not think it is finished; they are hiding it. I was going to buy 4 grams," one citizen was quoted as saying by the same outlet.
Another citizen stated, "Everyone rushed here when prices dropped. But I think some jewellers are not bringing out the gold."
In Bursa, one jeweller hung a sign on his window to convince skeptical customers, which read: "We swear to God we don't have gold. Not at all. If we had, we would sell it."
Gold, along with the US dollar and the euro, remains one of the most popular forms of "under-the-pillow" savings among the public in Turkey. Gram gold is especially in demand due to its accessibility.
On Feb 28, 1 gram of gold was priced at around 7,400 liras. As of today, the price is around 6,300 liras, marking a decrease of nearly 15% (1 US dollar = 44.30 Turkish liras).
In international markets, the price of one ounce of gold hit a record high of 5,626 US dollars on Feb 22. However, it began to fall after the military escalation on Feb 28 and dropped to as low as 4,400 dollars in early trading today.
While oil prices have begun to rise due to Iran selectively closing the Strait of Hormuz in response to the attacks, gold prices started the new week with a decline influenced by interest rate decisions from the US Federal Reserve (FED). (VK)
