Turkish gold imports expected to exceed 70 tons

By REUTERS

Published: Oct 5, 2011 22:41 Updated: Oct 5, 2011 22:41

ISTANBUL: Imports of gold to Turkey were expected to exceed 70 tons both this year and next, marking a rise of more than 63 percent over 2010 levels, but remain held back by high prices and a weaker lira, Istanbul Gold Exchange Chairman Osman Sarac told Reuters.

Imports were 42.49 tons in 2010 and 69.15 tons in the first three quarters of this year. The lira currency has weakened nearly 20 percent against the dollar since the start of the year.

Because of high global gold prices of the past two years, imports are far below levels seen between 2005 to 2009, when the lowest amount imported in any year was 165.9 tons.

“We expect the gold prices to remain high in 2012 and thus maintain a negative impact on Turkey’s gold imports,” Sarac said. “We can expect imports of around 70 tons in 2012, a similar level that of this year.”

Domestic gold production in the first six months was 10.4 tons and was expected to reach 20 tons in 2011 as a whole, compared to an annual 16.4 tons in 2010.

With lira prices for gold at record levels, consumers bought less jewelry and sold more for scrap.

Turkish jewelry exports in the first seven months of the year were $814 million, and were expected to be around $1.5 billion for the full year.

Sarac also said 5,000 tons, or around three percent of the world’s total physical gold stock of 163,000 tons was kept as under-the-mattress savings in Turkey, amounting to a value of $273 billion.

He said increased investment demand for gold, helped by the low interest rate environment, has helped offset the fall in jewelry demand.

via Turkish gold imports expected to exceed 70 tons – Arab News.