Gold Trading Grinds to a Halt in Istanbul’s Grand Bazaar Amid Price Surge
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Gold prices have hit record highs in Turkey, triggering panic and forcing many jewelers in Istanbul’s Grand Bazaar and across the country to suspend sales. With the price of a gram of gold reaching 5,500 lira and the spread between buying and selling widening to 500 lira, physical markets have entered a state of turmoil.
Jewelers Halt Sales as Prices Soar
A wave of unprecedented volatility has swept through Turkey’s physical gold market.
Jewelry shops in Istanbul’s Grand Bazaar — the centuries-old heart of the gold trade — have temporarily stopped selling gold as prices continue to climb.
The record-breaking rally has left many retailers unable to set stable prices.
According to Mehmet Ali Yıldırımtürk, a veteran gold and money markets analyst, “Jewelers in the Grand Bazaar and across Turkey have suspended sales after extreme price fluctuations made it impossible to keep up with demand.”
He added, “Central banks’ continued buying and mounting geopolitical risks are driving gold higher. The market is effectively frozen.”
Historical Parallels: “I Haven’t Seen This Since 1974”
Yıldırımtürk compared today’s market to the gold rush of 1974, recalling a time when prices surged hourly and jewelers struggled to meet demand.
“I experienced something similar back then,” he said. “Prices were rising minute by minute, and we simply couldn’t keep up. What we are seeing now is almost identical — it’s nearly impossible to predict where prices will go next.”
The extraordinary rally reflects global unease about inflation, U.S. fiscal risks, and shifting geopolitical alignments — all of which are pushing investors toward safe-haven assets.
The “Barter Economy” Is Back
Yıldırımtürk also pointed to the resurgence of barter-based trade among countries as a key driver of rising commodity values.
“Some nations are already reverting to barter systems,” he said. “For example, Pakistan ships goods to Iran in exchange for oil. In this new global pattern, commodities are regaining value against paper currencies.”
According to Yıldırımtürk, if this trend accelerates, the price of gold could skyrocket to $10,000 per ounce.
“It’s not a fantasy,” he emphasized. “We are entering a period where raw materials and tangible assets are stronger than money. The new world order is shifting rapidly in that direction.”
Central Banks and Investors Drive Demand
Analysts note that central banks worldwide have been stockpiling gold as a hedge against both inflation and potential de-dollarization.
Turkey’s own central bank has been among the world’s top buyers over the past two years, while retail investors continue to see gold as a trusted store of value amid persistent currency depreciation.
This combination of institutional and household demand has tightened supply and sent local market spreads soaring — creating what traders describe as a “two-tier market” where spot and physical prices have diverged dramatically.
The Global Context: Uncertainty and Inflation
Globally, gold has gained over 50% since the start of 2025, reaching above $4,000 per ounce, fueled by U.S. rate cuts and fears of fiscal instability.
Experts warn that unless inflation expectations ease and interest rates stabilize, gold could remain at historic highs for much of the coming year.
In Turkey, where political uncertainty and a volatile lira continue to weigh on investor sentiment, gold remains both a safe haven and a daily necessity — one that’s becoming increasingly hard to price.
Jewelers on Edge, Customers in Confusion
At Istanbul’s Grand Bazaar, buyers crowd outside closed shops, waiting for clarity. Some merchants refuse to quote prices altogether; others sell only to long-time customers.
“Everyone is nervous,” said one trader. “We can’t risk selling when the market changes every few minutes. It’s chaos.”
Until volatility subsides, Turkey’s gold capital is holding its breath — a symbol of how global financial turbulence is now being felt at the most local level.
