Turkey to target ‘under the mattress’ gold in effort to bolster the lira

Financial Times/Laura Pitel/2-9-2022

“Turkey will expand its drive to lure savers back to the lira next week with a scheme aimed at bringing billions of dollars worth of ‘under the mattress’ gold into the banking system, the country’s finance minister told investors during a visit to London.”

USAGOLD note: Turkey’s ‘under the mattress’ scheme is voluntary. India launched a similar attempt to lure investors out of their gold positions that met with mixed success. We doubt this program will do much better given the ongoing problems with the Turkish lira and distrust of the country’s banking system. The price of gold in the Turkish lira has roughly doubled over the past year, and that did not happen in a vacuum: Caveat venditor – Let the seller beware.

Chart courtesy of TradingView.com