Turkish gold demand still strong

Demand for gold and silver is still high in Turkey in spite of strong price rally in precious metals in recent weeks, reported the Istanbul Gold Exchange merchant. Country ´ ‘s jewelry industry has not noticed any significant reduction in demand as a result of these increasing prices. Many Turks regard the gold jewelry that serves as an investment as an ornamental plant. In the meantime further launch East, Indian all-India gems and jewelry Federation (JRC), Indian jewelry industry ´ ‘s main organizations, as soon as a programme to enable country ´ ‘s jewellery dealers to sell and buy gold coins into the uniform prices – in contrast to the price set by the nation’s banks. Gold coins offered will be sold to customers nationwide open and equal prices.

Financial concerns in the United States, as well as concerns over European sovereign debt problems are driving more Turkish investors into gold, Osman Sarac, vice Chairman of the Istanbul Gold Exchange, told the news agency Anatolia yesterday. Under point Sarac, several indicators on the fact that decision makers in the United States will not be able to cope with the enormous economic problems country ´ ‘s much longer. Concerns that many investors were confirmed after credit rating agency Standard & Poor ´ s (S & P) downgraded its long-term credit outlook in the United States from stable to negative Monday. As a result, gold prices were collected throughout the world.

The price of gold ended yesterday’s Istanbul Gold Exchange trading session at 73,300 Turkish liras per kilogram. The price of gold also received land in US dollar terms, reaching an intraday high of $ 1,509 per ounce. Silver reached a new 31-year-old high of $ 46.35 per ounce early evening yesterday, even if the price of the metal was then a small setback to $ 46 per ounce. In comparison with gold, silver, typically attracting large investors not due to its high storage costs, but currently does not discourage investors.

Yesterday it was reported that the purchase of scrap gold, in the form of bracelets or rings of local jewelry traders in u.a.e. (UAE) was currently higher than their non-scrap gold jewelry sales. The gold price was too high to attract customers, as well as Nabil Rana, sellers of Faiza jewelry. Sales of gold jewelry in the u.a.e. has been cut in half by the rally in the price of gold. Customers therefore benefit from the high price by selling parts of their jewelry, commonly used in Abu Dhabi ´ s gold market centre in Madinat Zayed Shopping Centre.

Meanwhile in India, announced the All-India pearls and jewellery Federation yesterday that Indian jewelry dealers soon will compete with the United States’s banks in the purchase and sale of gold coins. As Bamalwa said Chairman Bachhraj organization, The Hindu business line, banks charge investors a premium of at least 10% on the sale of gold coins in comparison with the country’s jewellery traders ´. Gold coin, which is offered by jewelry is also well thought out in among Indian investors. Therefore be expected that the nation’s jewellery traders will take larger market share banks ´ precious metal operations in the future.