Gold is big business in Turkey, for cultural reasons and also because of the country’s experience with bouts of high inflation over the past century. The metal is traditionally given as a gift at weddings and circumcision ceremonies. Turkey’s gold demand, ranks as fifth in the world for jewelry and eighth for retail investment, mostly behind countries with much bigger populations such as India, China and the United States.
Turkey Gold 100 Kurush Coins are throwbacks to the glory days of the mighty Ottoman Empire. There was a several centuries long day an age where this ultimate Muslim superpower represented the single greatest empire in either Europe or the Middle East. At one point, it effectively stretched from North Central Africa through Libya and Egypt, most of the Middle East and Arabian Peninsula, Turkey, Jordan, Iraq, Greece, Cyprus, and the Balkans all the way up to the very gates of Vienna in Austria. Until the empire’s forced breakup for being on the wrong side of the fight in World War I, it still covered Turkey and much of the Middle East even in its terminal days as the so-called “sick old man of Europe.”
Reuters JULY 4, 2012: But in recent months the jewelry shops have a new and unexpected competitor: banks. The country’s commercial banks are pouring their technical expertise and marketing resources into offering their customers gold deposit accounts.
In Turkey you can have a bank account in Turkish lira, Euro‘s, USD dollars and Gold. On April 1st this year the Basel III established Gold as a risk free banking asset, even so, the only option for the Deplorables is stuffing their air-mattress with Gold coins.
Turkish Bank Account Options
When we moved here March 2015, we were required to open a bank account showing $6,000 on deposit, in order to receive our one year resident permit. We operated for 2015 with both dollar and Lira accounts. In 2016 I learned you could also open a Euro account, so why not! Then this year I heard from the Jim Rickards YouTube grapevine, that Turkey was the only country in the world with gold denominated bank accounts. We were living in Switzerland and didn’t know it.
“Money is gold, and nothing else.” JP Morgan
So gold deposit accounts are measured in grams and how many grams you have is determined by what currency you exchange for the gold. The Turks pay in Lira while expats use their home country source of funds, Euro for the Europeans, British Pound for the Royals and Buck$ for us.
In our example every month our 28.35 gram = 1 ounce deposit, goes up or down based on the spot gold price $1280 January 2019 at are open. When February jumped to $1321, I patted myself on my wallet for having $41 more than when I started. However, March roared in at $1287/oz putting me up just $7 and by May, I was back to scratch at $1280.
I forgot the purpose, the reason for opening the gold account in the first place: “Money is gold, and nothing else,” euros, dollars, lira, pounds, yen, yuan etc. are not real money. Every country’s Central Bank is losing money, some more than others. In 2015 the Turks could buy an ounce of gold for only 2,788 lira, Euro countries 980 euros and Americans 1,189 dollars. So when I got my June 2019 statement $1,305 – $1,189 (2015) = $116 less purchasing power since 2015 or a negative 2.4 interest rate.