Wedding season prevents quarter gold coin prices from falling
Wedding season in Turkey did not allow prices for quarter gold coins to fall despite the decreasing price of gold. Last month, gold bullion fell to as low as $1,088.05 an ounce, its lowest level since March 2010. While experts believe that prices will decline further, growing demand in wedding season hinders price decreases for quarter gold coins. It is a Turkish tradition that during the wedding ceremonies, relatives and friends give gold to the new couple to celebrate.
Ömer Gülsoy, chairperson of the Kayseri Chamber of Jewelers, said that gold could be easily affected by any positive or negative development in the world. Explaining that gold reached its peak in 2011 and since then has reached a low, Gülsoy said: "Gold bullion fell to as low as $1,090 an ounce. A gram of gold decreased from TL 102 ($36.65) to TL 95 to TL96. This decrease of around TL 6 to TL 7 didn't affect the prices of quarter gold coins since it is wedding season, and there is intense demand for quarter gold coins. Although quarter gold coins are sold at TL 165 to TL 167 right now, they are supposed to be sold at TL 160. Jewelers reflect this difference as premiums." Gülsoy said that the gold market would stagnate again in September when wedding season ends and Turkish expats go back to the countries they live in. He added that a slight decrease in the prices of quarter gold coins could occur from September.
Gülsoy said that gold prices will be affected by the rate hike decision of the U.S. Federal Reserve (Fed) and that world markets, including Turkey, will be shaped according to its decision: "If the Fed increases interest rates, investors will invest in U.S. bonds instead of gold. When there is less demand for gold, prices will have to decrease necessarily. It is expected that gold prices will even decrease below today's levels because demand will be less than now." Gülsoy also said that one could invest in gold at its current prices. He added that it is more reasonable to invest in quarter gold coins and golden wire bracelets, which have the cheapest labor costs, because when changing these golden pieces, a customer's loss will be less because of the low production cost.
Ömer Gülsoy, chairperson of the Kayseri Chamber of Jewelers, said that gold could be easily affected by any positive or negative development in the world. Explaining that gold reached its peak in 2011 and since then has reached a low, Gülsoy said: "Gold bullion fell to as low as $1,090 an ounce. A gram of gold decreased from TL 102 ($36.65) to TL 95 to TL96. This decrease of around TL 6 to TL 7 didn't affect the prices of quarter gold coins since it is wedding season, and there is intense demand for quarter gold coins. Although quarter gold coins are sold at TL 165 to TL 167 right now, they are supposed to be sold at TL 160. Jewelers reflect this difference as premiums." Gülsoy said that the gold market would stagnate again in September when wedding season ends and Turkish expats go back to the countries they live in. He added that a slight decrease in the prices of quarter gold coins could occur from September.
Gülsoy said that gold prices will be affected by the rate hike decision of the U.S. Federal Reserve (Fed) and that world markets, including Turkey, will be shaped according to its decision: "If the Fed increases interest rates, investors will invest in U.S. bonds instead of gold. When there is less demand for gold, prices will have to decrease necessarily. It is expected that gold prices will even decrease below today's levels because demand will be less than now." Gülsoy also said that one could invest in gold at its current prices. He added that it is more reasonable to invest in quarter gold coins and golden wire bracelets, which have the cheapest labor costs, because when changing these golden pieces, a customer's loss will be less because of the low production cost.
Last Update: August 05, 2015 20:39