Saturday, April 07, 2012
Gold, the real Turkish delight
This change of policy followed turkey's banks receiving approval to hold some of their reserves as gold.
Turkey, as has India and Vietnam before them, is turning to gold as a safe method to address their balance of payments problem.
A 70-year-old housewife once said, "In an emergency, I can convert [gold] to cash and I don't have to wait for the bank to say the asset has matured." And it seems this is the growing attitude in Turkey, Another country now recognising the value of gold as money.
As well as some US States now, Venezuela, Mexico, India and China are not the only countries recognising the value of using gold to back their assets.
The traditional form of saving in Turkey has been gold and the government now wants to draw down on that asset in an effort to reduce the ten percent finance gap of GDP. The fact that it is using gold to do this is significant and indicates the growing dissatisfaction in paper money in the form of the Turkish Lira.
As the ZeroHedge.com pointed out recently, “It would seem the rise in the value of Gold (in Turkish Lira) has been a 'good' store of value for the Turkish people over the past two decades...”
If you want some of that ‘Turkish delight’ then the best way is to buy gold while it is still hovering in the lows.