Turkish citizens are increasingly turning to gold as a hedge against inflation, overtaking real estate as their preferred asset class. Data from the Central Bank of the Republic of Turkey shows a shift in investment behavior. A survey conducted in August revealed that 41.3% of participants plan to purchase gold. That figure marks the first time since the survey began that the precious metal has claimed the top spot, surpassing the 37.1% of respondents interested in real estate.
The preference for physical assets over property reflects concerns about currency stability. While real estate has long been a reliable store of value for Turkish families, recent volatility in the property market has made it less attractive. Interest in land and commercial properties dropped by 1.4 percentage points, signaling a shift toward immediate liquidity and tangible value. Investors now favor assets that can be stored and easily valued rather than those tied to physical structures that may not keep pace with rising costs.
Annual consumer inflation eased to 31.75% in July from 32.11% in June, but public caution remains. The central bank’s survey shows expectations for inflation over the next 12 months have risen to 45.58%. This gap between actual price growth and future expectations fuels demand for tangible goods. When the local currency’s purchasing power feels uncertain, people seek assets that hold value regardless of economic policy changes.
Food and energy costs drive the inflationary environment. Though slightly fewer people cited food as the main source of price hikes, these categories are expected to stay volatile. Property values are projected to rise 32.13% over the next year, but gold offers a different kind of security. Its tangible nature appeals more than the uncertain appreciation of real estate.
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This shift shows how people respond to economic instability. When currency values fluctuate unpredictably, physical commodities become more attractive than long-term investments. The preference for liquidity and possession demonstrates how quickly market behavior adapts to cost-of-living pressures. Investors now prioritize immediate survival and value retention over traditional strategies.
The central bank raised its inflation forecast to 28% by the end of 2026, up from 26%. Officials cited persistent volatility in food and energy prices as the reason. The bank still aims for 24% inflation in 2026, 15% in 2027, and 9% by 2028. Until those targets are met, gold will likely remain a safe choice for Turkish households.
Recent budget cuts in Europe have also raised concerns about economic stability, reinforcing the appeal of gold as a protective measure.
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