Turkish gold imports plummet in April

Author: Paul Ploumis
08 May 2015 Last updated at 08:27:01 GMT
ANKARA (Scrap Monster): The gold imports by Turkey during the month of April this year dropped sharply over the previous year.

According to data published by the Borsa Istanbul (Istanbul Gold Exchange), the country’s gold imports totaled 2.092 tonnes, 50% lower than the total gold imports by the country during April 2014. Turkey had imported 4.192 tonnes of gold in Apr ‘14. The gold imports during April were up by over 11% when compared with the imports of 1.878 tonnes during March this year.

Industry sources indicate that the year-on-year decline in gold imports is a clear indication of Turkey’s falling domestic gold demand. Also, gold premiums substantiate the poor gold demand in the country. Gold for immediate delivery is available at a discount in Turkey. The downturn in Turkish economy coupled with rising unemployment rates have led to limited gold purchases by Turkish customers. However, gold demand is expected to rebound during the upcoming wedding season, when premiums are expected to claw back to levels of $2-$3.

Meantime, Silver imports during Apr ’15 too remained soft after hitting its peak during March this year. The country’s Silver imports totaled just 31.61 tonnes in April ’15, considerably lower when matched with the record import of 54.6 tonnes in March. The Silver imports during April hit the lowest level since October 2014. The imports April 2015 were significantly higher when compared with the imports of 6.604 tonnes during the same month a year ago.

According to World Gold Council (WGC) estimates, Turkey is the world’s fourth largest gold consumer, accounting for nearly 6% of the global gold demand. The Turkish gold imports had dropped almost 57% from 302.3 tonnes in 2013 to 130.9 tonnes in 2014.