'Stop stashing gold at home' : NPR

Key Points:

• In Turkey, gold is traditionally gifted during major life events and stored at home as a safeguard against frequent currency devaluations and economic instability, reflecting widespread public distrust in the national currency and banking system.
• Turkish households reportedly hold about 5,000 tons of gold, valued at approximately $600 billion, which remains largely outside the formal financial system, limiting the government's ability to implement effective monetary policies.
• Economists argue that this culture of gold hoarding undermines economic growth by preventing capital from being lent to businesses and exacerbating the current account deficit due to gold imports.
• Public mistrust in financial institutions is driven by historical banking crises, persistent high inflation (around 31%), and negative real interest rates, leading many Turks to view gold as a safer store of value than lira deposits.
• Despite government efforts and incentives to encourage citizens to deposit gold into banks, these initiatives have largely failed, as confidence in economic management remains low, and many Turks, including young people like bride-to-be Nefise Asker, prefer to keep gold physically at home.