Gold’s Rally Spurs Turkish Hoarders to Splurge on Homes and Cars

view original post

Soaring gold prices are prompting Turkish households to convert their bullion savings into big-ticket purchases, especially homes and cars, according to a new study by the country’s central bank.

The study found that rising gold prices — which reached a record high of $3,500 an ounce in April — have created a wealth effect, particularly in cities with high levels of bank deposits in the precious metal.