President Recep Tayyip Erdogan’s call to “get gold instead of foreign currency” filled the citizen’s pocket.

President Recep Tayyip Erdogan’s call to “get gold instead of foreign currency” filled the citizen’s pocket. After Erdogan’s call, 24 carat gold, traded in 128 liras, raised by 15 percent to 147 liras. Upon Erdogan’s call, the citizens who have exchanged foreign currencies and received gold began to earn in as short as 1.5 months. As of December 2016, 24 carat gold, traded at 125 liras, the citizens flowed into goldsmiths and banks to sell the gold under the pillow when it was trading at 147 liras as of March. Citizens who can not buy gold at the time of the President’s call, continue to make purchases with the hope that gold will rise again.


Goldsmiths reported an increase of 20 to 30 percent in gold sales, Erdem said, ” When gold goes down, people attack gold. We always say that if you will be deceived at these prices and sell the gold and wait for unnecessary time and  lend it to the dollar, do not be in such an opinion. Invest in gold.  Between 2003 and 2016, the dollar had risen by about 2.2, while the gold gained 6-7. Gold always keeps on winning.  Never turn to the dolar. Stay in gold and they will continue to win, “he said. Authorities said, “At the beginnig of this year, gold was 125 liras, now our tag price is 147 liras. As the President of Turkey has said, the citizens must leave the dollar and buy gold. Because gold always earns.

President Erdoğan said, the gold indexed step should be taken in the currency. President Recep Tayyip Erdogan proposed “gold” to get rid of the international currency pressures and said, “I believe that it would be more appropriate to take a participatory finance approach in the financial sector, indexed to the currency or even gold. When we express with gold, we will not be under the pressure of these currencies.”



President Recep Tayyip Erdogan attended the 32nd Opening Session of The Standing Committee for Economic and Commercial Cooperation of the Organisation of Islamic Cooperation (COMCEC). Erdogan, speaking at the meeting, emphasized that the trade volume between the members of the Organization for Islamic Cooperation should be increased, and “In the next decade, 6 percent increase in intra-organization trade is targeted. I think this is a modest increase. Considering the potential of our country, I think it would be more appropriate to take 25 percent of it. This is not a limit. But it must be 25 percent” he said.


Erdogan argues that Islamic countries should become more resistant to global crises. “In this context, I take care of the solutions that will be inherent in the important crises that Islamic financial asset based approach and moral principles are giving. For that reason we are constantly talking about interest-free. How do we get rid of international currency pressure here? I find it useful to take steps. I believe that it would be more appropriate for the participatory finance approach in the finance sector to take an indexed step in the currency or even in the gold. The volume of the Islamic financial market grew by 15 percent per year. In 2015, it reached $ 2.1 trillion. Let us express them in gold. When we express with gold, we won’t be under the pressure of these currencies. There is great benefit in taking this step. It is estimated that the potential of this system is around 7 trillion dollars ” he said.

The President’s call to convert dollars to gold and the Central Bank’s gold purchase decision created doping effects in the jewelry industry. While gold sales are folding in a week, it is expected that 55 tons of gold,under the pillow, will be given for the economy.  President Recep Tayyip Erdogan’s call for convert currency to gold or TL, followed by the decision of the Central Bank of the Republic of Turkey to start the purchase of physical gold in order to increase the savings rates,  made the jewelery industry take action. The citizen who has exchanged foreign currency attacked gold. According to Betül Alakent / İbrahim Acar from Sabah, retail gold sales increased in a week. With the decision of the Central Bank of the Republic of Turkey (CBRT), 55 tons of gold, under the pillow,is expected to earn for economy.

At the gold reserve;

USA is the leading country.

Gold reserve (Ton)

USA        8.133 

  Germany 3.377 

  IMF 2.814 

  İtaly 2.452 

  France 2.435 

  China 1.839


 Swiss 1.040 


 Nerherlands  612.5 


 Euro Zone 508 



It is difficult to make precise estimates of how much accumulation is under the pillow. General Manager of the Turkey Office of the World Gold Council Murat Akman says “I have been in this business for 11 years, and during that time I only saw estimates of 800 tons to 8,000 tons of gold under the pillow. ”

In fact, the figures spoken in the foreign exchange market generally vary between 15 and 40 billion dollars. Assoc. Dr. Mesut Eren, professor of Istanbul Kültür University, suggests that there are 100 billion dollars in foreign currency under the pillow. Capital’s estimates are in a wide range. Accordingly, the amount of savings held under “pillows” ranges from $ 25 billion to $ 100 billion. An economist explains the importance of this amount with these words: “After the February crisis, the IMF announced that it would give $ 17 billion in loans to Turkey, which was very favorably received by the markets. However, the amount under the pillow is many times higher than this. This comparison proves better the effectiveness of this money’s return to the system.


“It’s hard to give up from the gold”

Prof. Dr. Ege Cansen thinks that the money under the pillow ruins the balances in the economy and causes interest rates to rise. Cansen: “When we look at the real economy side, we see that a bigger financial system is needed. There are about $ 100 billion in deposits in the banks. I wish it was $ 200 billion. In this way, the economy will return faster, interest rates will decrease, and the number of firms that went bankrupt will also decrease. ” said.

Murat Akman, General Manager of the Turkey Office of the World Gold Council, in spite of everything, thinks that gold is an investment tool that investors will give up last. Akman continues: ” Gold is a metal that is determined by international stock markets. So people always consider it a disaster insurance tool. And they do not want to leave it.”

Prof. Dr. Deniz Gökçe says that the accumulation under the pillow must be brought into the system in order for the financial sector to develop. Prof. Dr. Gökçe’s views on the subject are as follows: “I think there’s $ 60 billion in gold under the pillow. If we think that this amount is about the total domestic debt of Turkey, we import this gold with foreign currency, we understand the economic damage more clearly. Of course, the amount of foreign exchange under the pillow, which is thought to be 15 billion dollars before the crisis, also increased after the crisis. Although the value of gold is constantly falling, we can not give up. So these gold are not turning into the economy. But if we evaluate these gold in deposits, that is, if we hold it in the bank, the financial sector will grow to a significant extent. Thus, both the financing needs of the Treasury are met and the budget deficit is reduced. ”


“GOLD” under the pillow

It is estimated that the Turkish people have 5 thousands tons of gold,under the pillow. However, since 2011, the amount of gold involved in the system has been kept at 60 tons for the campaign aimed at earning gold for the economy. Despite the campaigns made, the amount of gold inserted into the system is too low. In that case there is a question : “Are the 5,000-ton estimates made on the amount of gold held by the Turkish people were exaggeration?”

While projects are being developed in our country to increase the savings that are low with the support of the government, studies have been initiated in order to make the investments under the pillow economical from the other side. Thus, since 2010, the banks are trying to earn the gold under the pillow to the economy with the application of “Golden Days” in order to earn the scrap gold to economy. Monetary value of gold that the banks have collected so far, has remained at only $ 2.5 billion. The habit that started by keeping our money “under the pillow” and the money they had reserved for hard days, won a great dimension over time. Now it has become an economic power because of including billions of dollars in foreign exchange and gold. While the estimate of the experts was around 25 billion dollars today it is estimated that this amount is 100 billion dollars. However, clear predictions do not remove the enormous power. Along with it, it is increasing with the crisis. At the beginning of the work, this name was called “Black Day Money” and the Elders referred to it as “Shroud Money”. Over time the “under pillow” factor grew. The amount of money left for hard times increased.  We are now experiencing the reality of a “pillow-bottomed economy” in our country even if the reasons are different. It is estimated that in a serious situation relative to the gross national product, especially in the banking sector, even if the size of this financial entity, which prefers to maintain its existence systematically and indifferently. Especially in the banking sector,  even if the size of this financial entity, which prefers to maintain its existence out of system and unregistered is un predictible, it is expected that it is in a serious amount relative to the gross national product.

Because of the economic downturn that has lived for a while, the “under pillow” factor has come back on the agenda. When we accept the experts’ estimates as a basis, it is possible to get a clearer picture in terms of “pillow gold” prediction. The revealed data reveal the size of the work.

The “gold” under the pillow is one of the traditional saving methods of the Turkish people. It is at the top of the guarantee methods preferred by the Turkish citizen. Let’s examine the data presented: Prof. Dr. Deniz Gökçe, has the idea of there is $ 60 billion in gold under the pillow. This amounts to about 7 thousand tons of gold for current prices. Economist Uğur Civelek argues that gold under the pillow is around 500-2 thousand tons (about 12-17 billion dollars). However, Murat Akman, General Manager of the Turkey Office of the World Gold Council, estimates 3500 – 4500 tons (about 30-38 billion dollars) for the amount of gold under the pillow. However, according to Akman, only 5-10% of this gold can be returned to the system. “Because 80 percent of it is used as jewelry. The remaining 20 percent is made up of Republican gold and Ottoman coins. It is very difficult to return to the system because a significant part of the Ottoman coins are considered as numismatic. Therefore, only 350-450 tons of gold can return to the system ” Akman says.