Turkey: record silver imports in September

17 October 2023 г. 5 minutes of reading

During the current year 2023, 257 tons of the yellow precious metal have already been imported into Turkey. This means that compared to the same period of 2022, Turkey's gold imports have almost tripled (+183%).

In contrast to gold imports, Turkey's silver imports rose strongly in September. Its volume amounted to 106.80 tons, 334% more than in the previous month and 157% more than in the same month last year. For reference, the mentioned import volume is the highest volume of silver since the publication of Borsa Istanbul's monthly data (since 1999). At the same time, silver imports from January to September are still 9% below the previous year's level at 671.33 tons.

Due to economic problems and high inflation in Turkey, private demand for gold remains high. However, this demand is also price sensitive. Therefore, gold is often replaced by cheaper gold in the jewelry industry. The sharp fall in silver prices probably also played a role in recent developments.

After a continuous decline in the inflation rate from its peak of 85% in October last year, consumer prices in Turkey have started to rise again in the last two months. While 38 percent inflation was reported in June, the official Turkish inflation rate is now back at 61 percent.

In addition, the Turkish lira's exchange rate against the U.S. dollar continued its steady decline. Over the past twelve months, the exchange rate of the national currency against the U.S. dollar has fallen by 33%. At the same time, the price of gold in Turkish lira has increased by 63% over the year. In the last six months alone, the price has increased by 48%.