Turkey Launches ATM Gold Sales, Expert Warns of Wide Spreads

Turkey has entered a new era of gold trading with banks now offering gram gold sales through ATMs. This long-anticipated service, previously stalled by concerns over fraud, is now being implemented with enhanced security measures and protected packaging. Market expert İslam Memiş views the move positively, noting it addresses the need for immediate physical gold access.

Memiş recalled that similar ATM gold sales existed in the past but were discontinued due to fraudulent activities where counterfeit gold was exchanged for genuine items. Banks aim to prevent recurrence through advanced security systems and secure packaging methods. He also pointed out that this service is unlikely to negatively impact traditional jewelers, as it primarily caters to urgent needs for occasions like weddings and engagements.

However, Memiş strongly advised investors to be cautious of the "spread" – the difference between buying and selling prices – offered by banks. He highlighted that this spread can be as high as 200-250 Turkish Lira per gram at banks, significantly wider than the approximately 50 Lira spread found in the Grand Bazaar. This substantial difference means investors could face higher costs for short-term trading.

Memiş also cautioned investors against short-term trading due to ongoing global market uncertainties. He recommended diversifying investment portfolios for the long term, emphasizing that relying on a single investment vehicle is not advisable. The expert noted that attention in both the gold and oil markets is currently focused on central banks.