Sale of 'cut gold' banned: What should investors do? Expert explains

With the Ministry of Treasury and Finance banning the sale of cut gold, the question of what investors holding this type of gold should do has come to the fore. While the reasons behind this ban are being investigated, especially given the recent popularity of cut gold, gold and money markets expert İslam Memiş provided guidance to those holding cut gold and shared insights on the roadmap for gold in the coming period.

WHY WAS CUT GOLD BANNED?

With the decision published in the Official Gazette, the sale of precious metals in cut form, also known as "cut gold," will no longer be permitted to anyone other than jewelry businesses and individuals whose tax registration indicates they are engaged in the production or trade of precious metals.

Gold and money markets expert İslam Memiş stated that the reason for banning cut gold is to prevent the informal economy, sharing the information that, "Since people have been turning to gold instead of foreign currency, regulations were made regarding the production or sale of cut gold."

However, stating that the true rationale behind the bans is not entirely clear, İslam Memiş noted that the production of counterfeit cut gold has led to its circulation in the market, which is difficult to track.

WHAT WILL INVESTORS WITH CUT GOLD DO?

Following the cut gold ban, Memiş answered the question of what citizens holding cut gold will do by saying, "The sale of cut gold has been banned, but its purchase has not. In other words, citizens who want to cash in their cut gold can carry out their transactions at jewelers without any problems," while also underlining that investors should avoid opportunists.

BE PATIENT AND DO NOT PANIC IN THE SHORT TERM

Commenting on the course of gold prices, Memiş told gold investors to be patient, not to panic in the short term, and that prices would rise again in July. Memiş stated that he expects gram gold to rise to the range of 4,000 to 4,500 Turkish Lira by the end of the year, and that ounce gold is expected to break the 3,050 to 3,080 dollar level and rise to 3,200 dollars. He also noted that they expect gold prices to rise again towards the end of 2026.

News Source: 12punto