Seldom has a single asset class demonstrated such compelling appeal among diaspora communities as gold has for Turkish expatriates. Gold deposits held by Turkish citizens abroad in domestic bank branches have nearly doubled in roughly two and a half years. This surge underscores a broader pattern of wealth preservation amid sustained economic volatility. The phenomenon highlights how deeply embedded gold remains in Turkish financial culture.
According to banking data, overseas residents held approximately 11.05 tonnes of gold in Turkish banks at the end of 2023. By June 2026, that figure had climbed to 21.42 tonnes, representing an increase of over 10 tonnes. The acceleration was particularly pronounced in 2025, when deposits jumped to 19.15 tonnes by year-end. This trajectory suggests that rising gold prices alone do not account for the influx.
The broader domestic picture reinforces this trend. Gold deposit accounts across all Turkish banks surged by 99.1 percent year-over-year in the third quarter of 2025. Total gold deposits reached 2.72 trillion liras, up from 1.36 trillion in the same period a year earlier. Notably, gold's share of total bank deposits expanded from 8 percent to 11 percent. Individual depositors constitute 91.3 percent of these accounts, indicating household-driven demand.
Turkey's prolonged bout of inflation has been a pivotal catalyst for this shift. Consumer prices spiked to an average of 72 percent in 2022, before moderating to around 54 percent in 2023. Such persistent erosion of purchasing power has incentivized currency substitution toward hard assets. Gold, with its centuries-old cultural significance in Anatolia, has naturally emerged as the preferred hedge. The World Gold Council estimates total gold holdings in Turkey exceed 4,500 tonnes.
For the banking sector, channeling diaspora gold into the formal financial system presents a strategic imperative. The government launched a Gold Conversion System in 2022, enabling citizens to deposit physical gold at contracted jewelers. These deposits can then be converted into gold-backed bank accounts or certificates. Should this momentum persist, Turkish banks may unlock substantial liquidity from previously unregistered assets. The implications for monetary policy and financial stability remain profound.
