Couples ‘renting’ gold amid crisis

ISTANBUL - Anatolia News Agency

Some Turkish citizens ‘hire’ gold for special occasions instead of buying it.

In the face of tough economic times Turkish jewelers have launched a jewelry rental system for those facing financial difficulties making them unable or unwilling to invest in gold jewelry for weddings.

The skyrocketing price of the yellow commodity has made it increasingly difficult for couples facing financial stress to tie the knot with traditional wedding parties, where giving golden coins or jewelry as a gift is traditional.

The hiring or rental system has been in place for the last few years and gives couples the ability to hire gold jewelry for 10 percent of its total price for a week. The most sought after jewelry is 14 carat gold sets.

Jewelers demand collateral valued at an amount equal to the rented jewelry and ask couples to sign a gold jewelry rental agreement, Mehmet Yıldırımtürk, an Istanbul-based jeweler told Anatolia news agency. The rental period is 10 days and jewelers charge 3 percent of the total value of the rented jewelry for each day the jewelry is not returned.

The markup is 50 percent for 14 carat gold jewelry sets, Yıldırımtürk said, adding that a rental system prevents a 40 percent loss as renting the jewelry out costs 10 percent of the items total value.