Turkey on a Gold Buying Spree

Jon Banking, Economy, Gold, Market Commentary, Precious Metals

Turkey is buying gold.
The question is: why?
According to a Bloomberg report, the Turkish central bank added 3.8 million ounces of gold worth almost $5 billion to its reserves this year.
Officials say the number may be skewed higher due to commercial bank deposits. But even if the central bank only purchased a third of that 3.8 million ounces, it would still rank Turkey among the top two or three gold buyers in 2017.
Turkey ranks 11th in the world in gold holdings, according to the International Monetary Fund.
So, what is driving Turkey’s appetite for gold?
The central bank says its merely diversifying. But some analysts speculate Turkey could be shoring up its reserves due to rising tensions with its traditional Western allies. Societe Generale SA analyst Robin Bhar told Bloomberg this theory is gaining ground in financial circles.

This post was published at Schiffgold on NOVEMBER 7, 2017.