Author: Paul Ploumis
03 Jun 2015 Last updated at 08:18:34 GMT
ANKARA (Scrap Monster): The gold imports by Turkey during the month of May this year dropped sharply over the previous month.

According to data published by the Borsa Istanbul (Istanbul Gold Exchange), the country’s gold imports totaled 1.65 metric tons, 21% lower than the total gold imports by the country during April 2015. Turkey had imported 2.092 tonnes of gold in Apr ‘14. Meantime, government data also suggests that gold exports by the country surged higher by nearly 27 times to $1.43 billion in April this year, with majority of the shipments routed to Switzerland and UAE.

The most recent data published by the World Gold Council (WGC) indicates that Turkish gold demand slumped 42% during the first quarter in 2015. Furthermore, the weak demand is expected to extend to the second quarter. The year-to-date gold imports in 2015 are down by 60% from the previous year. The imports during January to May this year have hit the lowest levels since 2010.

The Turkish gold demand has fallen drastically on account of weakening Lira against the dollar. Gold for immediate delivery is available in Turkey at a discount. Domestic gold prices have rallied by over 20% during the past one year. The sharp decline in Turkish currency has made gold more expensive for domestic buyers. Moreover, rising unemployment rates have resulted in limited gold purchases by Turkish customers.

Meantime, Silver imports during May ’15 too remained soft after hitting its peak during March this year. The country’s Silver imports totaled just 13.51 tons in May ’15, considerably lower by nearly 58% when matched with the import of 31.61 tons during the month before. Year-on-year, silver imports declined 22% in May. The country had imported 17.25 tons of Silver in May last year. Meantime, the cumulative silver imports during the initial five-month period in 2015 surged higher by 145% to 164.96 tons, when matched with the imports of 67.36 tons in the corresponding period last year.

As per World Gold Council (WGC) estimates, Turkey is the world’s fourth largest gold consumer, accounting for nearly 6% of the global gold demand.