Gold market in Turkey and İstanbul Gold Exchange

Abstract

ABSTRACT This thesis specifically analysed the changes in the working of the gold market in Turkey and especially determined the changes from the control of central bank to the control of IGE. Establishment of IGE was important in terms of liberalisation of the financial markets. IGE created an organised gold market and closely linked it to international markets. The factors that determine the world gold price are also valid for Turkey. However, during the period of economic instability and uncertainty, gold demand showed significant movements. In Turkey, gold is seen as a traditional store of value both in urban and rural areas, having cultural issues as well as economic ones. The price of gold in Turkey is determined by two sets of factors. These are `gold supply` and `macroeconomic factors`. This thesis shows that ?$iere is an increasing demand for gold in case of uncertainty or instability.