Turkey's year-end gold imports, a bellwether for its massive jewellery export industry, will fall far below last year's record, despite an expected November recovery, Istanbul Gold Bourse president Vahdettin Ertas said.
World gold prices, which saw fluctuations of as much as $20 per day and a 26-year price high of $730 per ounce at the beginning of May, have cut imports by as much as 32.2 percent in the first 10 months of the year.
"Gold imports by volume are below last year, but financially because of high prices, we are approximately 0.5 percent above 2005," Ertas said. Gold imports have risen gradually every year since 2001, and saw a record 270 tonnes last year.
"There's a big probability that we'll end the year with a figure around 200 tonnes," Ertas in an interview on Wednesday. The spot price of gold stood at $632.30 per ounce on Friday.
Ertas said the month-on-month fall of 57 percent in October was due to a slowdown for Ramazan, when Muslims fast during day, but demand was expected to pick up in November.
"Before Christmas there is an increase in jewellery exports, so we see physical demand. This demand will last into November, and will calm a bit in December," he said.
Third quarter gold imports generally make up for slower sales earlier in the year as Turkish jewellery makers prepare for exports to the United States - their chief trade partner - for the Christmas holiday.
Jewellery exports from Turkey, the world's second largest exporter, are expected to remain below last year's value of $1 billion. Ertas, emphasising gold's increasing popularity as an investment vehicle, said he was satisfied with GOLDIST's performance after it opened on the Istanbul's stock exchange.
"We have a daily volume of trade of nearly 10 million lira ($6.91 million). And it won't get smaller as it hasn't been marketed to foreigners, this is only domestic interest," he said.