Rising global demand for gold could create an opportunity for Türkiye to expand domestic output and position itself as a regional refining and trading hub, supported by its established refining and jewelry manufacturing infrastructure, an industry representative said.
With geopolitical risks and global uncertainty persisting, sector officials note that gold's strategic importance is increasing and boosting domestic production could strengthen both economic security and Türkiye's regional role in the gold market.
Hasan Yucel, chairman of the Turkish Gold Miners Association, told Anadolu that recent declines in gold prices have been driven mainly by global interest-rate expectations, dollar movements and short-term fund flows.
"Geopolitical risks have not disappeared. With the Iran crisis and the Russia-Ukraine war ongoing, safe-haven demand remains intact. Short-term pullbacks of 3-5% are normal, but we believe the long-term trend remains upward," Yucel said.
He added that lower prices should be seen as an opportunity rather than a crisis, calling for incentive mechanisms that treat gold as a strategic commodity and support higher domestic output.
Türkiye should prioritize domestic production over imports to reduce exposure to external shocks, he said.
"As production rises, dependence on imports and pressure on the current account will decline. The country should secure its gold position through production, not imports," he added.
- Supply-demand gap supports long-term outlook
Yucel said growing gold purchases by central banks signal that the metal's renewed safe-haven role reflects a structural trend rather than a temporary wave, adding that global geopolitical risks and systemic uncertainties are likely to sustain demand.
Global gold production stands at about 3,500 tons annually, while worldwide demand exceeded 5,000 tons last year for the first time, creating upward pressure on prices, he said.
Türkiye currently produces about 28 tons of gold annually, while verified domestic resources total approximately 6,500 tons and could eventually reach 8,000-10,000 tons as exploration expands.
- 100-ton annual production target achievable
Yucel said Türkiye's long-term target of producing 100 tons of gold annually is attainable if permitting processes accelerate and financing becomes more accessible.
Additional investment of $5-10 billion could lift sustainable production to that level within five years, he noted.
Public opposition, lengthy permitting procedures, and investment uncertainties have contributed to the current low production level, but clearer strategic planning and faster decision-making could enable output to rise first to 50 tons and then to 100 tons, he said, calling the target "a strategic necessity" for reducing the current account deficit and strengthening reserve security.
"By increasing production and rapidly commissioning ready projects, Türkiye could evolve into a regional hub that not only processes its own gold but also refines and trades gold from neighboring countries," Yucel cocluded.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr