What You Need to Know About Turkey’s New Precious Metals Tracking System

Turkey is preparing to roll out a new regulatory framework to tighten oversight of the precious metals market, as authorities seek to curb the informal economy, prevent fraud, and enhance consumer protection. According to information compiled by an Anadolu Agency (AA) correspondent, the General Directorate of the Mint and Stamp Printing House, operating under the Ministry of Treasury and Finance, is finalizing the Precious Metals Tracking System (KMTS).

The system is designed to ensure tax security, prevent fraud related to purity and weight, and standardize the packaging and traceability of precious metals produced by refineries. Officials say KMTS will function as a comprehensive monitoring mechanism, increasing transparency across the supply chain while protecting both consumers and legitimate businesses.

What the Precious Metals Tracking System Covers

Under the new framework, KMTS will apply to all printed precious metals and standard unprocessed precious metals weighing 1 gram or more. This includes gold, silver, platinum, palladium, and other products or product groups to be determined by the Mint.

The system will enable authorities to track unprocessed precious metals digitally. For precious metals weighing between 1 gram and 10 grams (inclusive), a security label with a unique serial number will be laser-marked onto the packaging. This label will serve as a verification tool, allowing both regulators and buyers to confirm authenticity and origin.

For precious metals weighing more than 10 grams, the serial number on the security label will be laser-engraved on both the metal itself and its packaging, adding an extra layer of security against counterfeiting and tampering.

What Is Excluded From KMTS

Importantly, the system does not apply to processed gold jewelry such as bracelets, rings, necklaces, or to gold of different purities like 22-karat or 18-karat jewelry. Authorities emphasize that KMTS is focused on refinery-produced, standardized precious metals, not personal jewelry owned by citizens.

This distinction has been highlighted repeatedly to counter misinformation circulating on social media and other platforms.

Cash Payments and Legal Limits Remain Unchanged

Alongside KMTS, existing payment rules under the Tax Procedure Law General Communiqué will remain in force. To prevent unregistered transactions, cash payments are allowed only up to 30,000 Turkish lira, while amounts exceeding this threshold must be conducted through banks or financial institutions.

Given current market prices, this means that citizens can generally purchase up to approximately 5 grams of precious metals in cash. Transactions above this level fall under documentation and verification requirements and must be completed via the banking system.

Authorities stress that this rule is not new and applies across all sectors, not solely to jewelry or precious metals.

Jewelers Push Back Against “False Claims”

Preparations for KMTS have triggered widespread misinterpretation and speculation, particularly on social media, leading to confusion among consumers. Jewelry sector representatives strongly reject claims suggesting sweeping bans or confiscation.

Speaking to Anadolu Agency, Ankara Jewelers and Watchmakers Chamber President Timuçin Sönmez criticized what he described as baseless and speculative narratives.

“Payments above 30,000 lira must be made through banks, and this rule applies to all sectors. This is not a new practice and does not target jewelers specifically,” Sönmez said.
“Making false claims such as ‘gold can no longer be purchased with cash’ is an attempt to create chaos in the market.”

“Claims of Confiscation Are Malicious”

Sönmez also addressed rumors suggesting that authorities would confiscate so-called “under-the-pillow” gold if it lacks official banderols. He dismissed these claims as deliberately misleading.

“The Precious Metals Tracking System is a barcode-based security application designed to prevent counterfeit and replica products. It applies only to refinery products. It has nothing to do with citizens’ bracelets, earrings, or necklaces,” he said.

According to Sönmez, allegations that “cash gold sales have been banned” or that “unbanderled gold will be seized” are entirely unfounded.

He added that jewelers are increasingly frustrated by having to reassure customers amid viral misinformation.

“We are tired of explaining these false claims to our customers. The jewelry sector is built on trust. Spreading misinformation for clicks and ratings harms both citizens and businesses,” Sönmez said.

Sector Warns of Broader Economic Impact

Sönmez went further, calling the jewelry industry a strategic sector for Turkey’s economy.

“Damaging this sector is like planting dynamite at the foundation of the country,” he said, urging authorities to consider legal action against individuals who make public claims without proper authority or expertise.

He emphasized that KMTS’s core objective is consumer protection and fraud prevention, not surveillance or confiscation.

Call for Lower Authorization Fees

Beyond KMTS, the jewelry sector raised concerns over the fees associated with the ‘Jewelry Trade Authorization Certificate.’ Sönmez acknowledged that registering businesses is necessary but warned that high fees could place an unfair burden on small tradespeople.

“Registration is essential, but fees must be set at reasonable levels to avoid victimizing shop owners,” he said, calling for adjustments that balance regulation with sustainability.

A System Aimed at Trust and Transparency

Overall, KMTS represents a significant step toward formalization and traceability in Turkey’s precious metals market. While authorities view the system as a safeguard against fraud and tax losses, industry representatives insist that clear communication is essential to prevent misinformation from undermining public confidence.

As implementation moves forward, both regulators and jewelers agree on one point: the system is intended to protect citizens—not penalize them.