During the Most Tragic Times, Governments Remember about Private Gold
History has many examples of governments banning private ownership of gold and consequently forcing people to sell it to the authorities or just confiscating it.
At the end of March, Turkish president Recep Tayyip Erdogan asked the population to sell gold and foreign currency in order to stop the depreciation of the lira. Turkey’s economy is in a deep economic and currency crisis, with a lot of pressure on the lira. In just one month, it lost 13% against the US dollar. In early April, it dropped by 20% within a single week.
Under these serious circumstances, Erdogan asked Turkish citizens to sell their foreign currency and gold to the state. This is supposed to help stop the lira from depreciating further against the USD. The authorities would use the resulting inflow of capital to help the economy and the manufacturing industry.
According to the Turkish media, Erdogan said, ‘Don’t believe those who say that we’re done for. This isn’t true. We’ll remain strong and overcome all the difficulties.’
Many precious metal analysts would like to know how many people in Turkey will follow the president’s request and sell their gold. It’s true that inflation is high, reaching the sheer value 15% in February. According to the data of the Istanbul gold exchange, only 9.3 tons of gold were imported into the country in February, which is twice less than a year before.
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