Supply shortage in jewelry stores puts Mint in overdrive

ISTANBUL

As gold prices surge to record highs, jewelry stores are grappling with dwindling supplies, prompting concerns about market stability and future price trends, with Istanbul Chamber of Jewelers reporting intensified production efforts at the General Directorate of Mint and Stamp Printing House.

Mehmet Ali Yıldırımtürk, a gold and money expert, explained that the directorate’s intensified production efforts were due to citizens’ reluctancy to sell gold and rising gold prices deterring jewelers from ordering new stock.

"Due to the limited gold sales of the citizen, the demand for gold can only be met by the directorate. But the jeweler must have the demand for gold," Yıldırımtürk explained.

However, due to the rising gold prices, the demand of jewelers for gold from the directorate has decreased considerably, according to Yıldırımtürk.

"The jewelers wait for three to five days, and during that time, the gap can narrow due to the quota applied to gold," he stated, underscoring the uncertainties facing jewelers.

He predicts that resolving the issue may take some time yet indicates optimism that recent availability challenges can be addressed, albeit gradually.
Regarding future gold prices, he emphasized the interconnectedness of global economic factors, predicting fluctuating prices based on the U.S. Federal Reserve policies and domestic inflation rates.

"There is an expectation of 42-45 Turkish Liras against the U.S. Dollar. If this happens, gold, which is around 2,000 liras ($62), may reach 3,000 liras at the end of the year." Yıldırımtürk said, noting that year-end expectations were difficult to make due to frequent fluctuation.