Turkey is one of the Eurasian countries with great expectations about increasing gold production. According to experts, Turkey has 23 million troy ounces of the yellow stuff waiting to be mined. The Turkish government is subsidising gold production in the hope of encouraging further growth in the sector. Last week the Canadian mining company Wardell Armstrong announced the discovery of 31 tonnes-worth of gold in the province of Kayseri.
Many Turks are culturally predisposed towards buying gold, as is true of citizens of other Asian countries. The serious devaluation of the Turkish lira in recent decades has also acted as an impetus; in 2011 alone the lira lost 23% against the US dollar – and far more against gold. Little surprise then that the market for gold bars, coins and jewellery is thriving, with the country’s precious metals businesses experience an unparalleled boom.
Although Turkish gold production is not being widely talked about in financial media, some think that Turkey has the potential to become one of the world's largest gold producing countries. At the end of 2010 there were just four gold mines operating in the country, but the government has been working on plans to drastically boost production.
During 2010 Turkish mines produced approximately 650,000 troy ounces of gold. The government predicts that production will triple during this decade, and Wardell Armstrong’s recent discovery has added to the optimism. The company started prospecting in August 2008 on 13 sites in the Anatolian province of Keyseri.
