Global Recession To Dim Turkey's 2009 Gold Demand

Source:

"Gold imports by Turkey, one of the top three consumers of bullion, dropped 30% in 2008, while its gold jewelry exports fell around 14%."

Turkish physical gold demand could remain sluggish in 2009 as high and volatile world gold prices and the global economic slowdown deter customers, traders and producers said on Tuesday.

Gold imports by Turkey, one of the top three consumers of bullion, dropped 30% in 2008, while its gold jewelry exports fell around 14%.

Spot gold rose to a record high of $1,030.80 an ounce in March last year—a factor that traders cite for the high level of scrap coming back to the market and dampening demand for imports.

Consumers' reluctance to spend as the global recession reduces global liquidity is another factor that cut demand in 2008, traders said. The impact of the recession was mirrored in the exports figures to the United States. A major market for Turkish jewelry, sales to the U.S. have dropped by 54%.

Turkey's gold imports stood at 166 tonnes in 2008, compared to 230.8 tonnes in 2007 and a record 270 tonnes in 2005. In November, imports tumbled to their lowest monthly level of 15 kg as demand dried up.

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