Turkish consumers rush to buy gold at Istanbul’s Grand Bazaar

ISTANBUL

A dramatic surge in precious metals has gripped Istanbul’s Grand Bazaar, where gold and silver traders are witnessing unprecedented demand.

Gold prices soared, with the gram climbing by more than 200 Turkish Liras in a single day on Jan. 28, sparking long queues outside shops selling gram gold and pure bullion. The rush was so intense that many jewelers reported running out of stock, forcing shopkeepers to admit customers one by one to avoid overcrowding. One buyer waiting in line summed up the frenzy: “I’ll buy whatever I can find. Price doesn’t matter. I’m putting my money into gold.”

The rally comes amid heightened geopolitical risks and anticipation of U.S. Federal Reserve policy decisions, which pushed the dollar to its lowest levels in nearly four years. Global demand for precious metals has surged. In Türkiye, gram gold reached 7,643 liras, while the quarter gold coin climbed to 12,470 liras.

Silver fever has been even more pronounced. Following Citigroup’s forecast that silver could reach $150 per ounce within three months, demand skyrocketed. In the Grand Bazaar, two out of every three shops reported they had no silver bars left.

Abdurrahman Başaran, General Manager of İpekyolu Jewelry, noted that silver’s rise may outpace gold due to its scarcity and wide industrial use. “At one point, the gold-to-silver ratio was 1 to 80. Now, one gram of gold equals 47 grams of silver. Silver isn’t found in nature like gold; it’s extracted from other metals, and its applications are vast. That’s why it can rise faster than gold,” he explained.

International markets reflect the volatility. Silver is priced at $3,670 per kilo in the U.K., $3,672 in Italy, and $3,825 in Turkey, while Chinese suppliers are quoting $4,460 per kilo for jewelry-grade silver. Başaran highlighted supply shortages, saying his company ordered 400 kilos of silver for production but received only 75 kilos after a month and a half. “Outside Europe, producing countries are struggling with silver shortages,” he added.

Some wholesalers have turned to selling granulated silver, which requires no labor costs and is increasingly popular in China. In Istanbul, granulated silver is now trading at 163 liras per gram, underscoring the intensity of demand and the strain on supply.