Jewelers admonish lenders’ gold trade

ISTANBUL

Istanbul Chamber of Jewelers President Kameroğlu (R) says if banks keep buying ‘scrap gold,’ jewelers will stop working with them and using their POS machines. Hürriyet photo

Turkish jewelers are upset over effects felt in their business following the Central Bank increasing banks’ required gold reserves from 10 to 20 percent last year, claiming that banks have gone so far as to collect what they say is “scrap gold,” according to daily Hürriyet.

“We are not against banks collecting bullion gold. However, we are against them creating gold days, quarter gold days and other such products, where they essentially collect scrap gold. This is negatively affecting our business,” said Istanbul Chamber of Jewelers President Alaattin Kameroğlu to daily Hürriyet.
“If banks continuing doing this, all of the jewelers in Turkey will get together and protest. We won’t work with those banks and will give them back their POS machines,” he said.

Sector provides jobs for 1 million people

Kameroğlu explained that there are chambers of jewelers in 32 provinces in Turkey and 30,000 jewelers. The sector provides employment to one million people and some jewelers struggle to make ends meet, sometimes selling a single one quarter gold piece or only one ring in a day.

“The increase in gold prices has already negatively affected our business. We believe that when banks buy and sell good, collect gold earrings and necklaces, this hurts our sector,” he said.