Actors of Gold Markets in Türkiye and Their Contribution To The Financial System

Abstract

Many studies reveal that the development levels of countries are parallel to the development levels of their financial markets. Considering that our country is in the category of developing countries, it is seen that our financial markets are still developing, and the diversity of our investment instruments and portfolios is limited when compared to the financial markets and economic systems of developed countries. In our country, where financial markets develop slowly and investment tools in money and capital markets are limited, financial literacy has increased especially in recent years as a result of the opportunities provided by developing technological opportunities, and gold-based financial instruments and gold derivative products have become more preferred. For this reason, the number of investment instruments in gold markets has increased in proportion to this interest, and gold and gold-based financial instruments have gradually strengthened their place in the economic system as an indispensable element of savings for investors and capital for companies.

At the same time, if we consider that risk is the main factor in decision-making of individual and institutional investors, risk is a rudder that directs the investment preferences of individuals and organizations in different scenarios that may arise in financial markets. Especially in periods when economic uncertainty and instability prevail, savers tend to keep a part of their investments, companies a part of their capital, and central banks a part of their reserves. The basis of this trend lies in the instinct of savers and investors to get their investments and savings out of economic or political crisis periods with as little loss of value as possible. Parties who want to make low-risk investments prefer alternative investment instruments or assets that are less risky among various investment instruments or assets with similar returns. The first of general actions taken for this is to transfer the risks of existing assets to gold, which is accepted as a value protection and value storage tool. In order to these decisions taken to minimize future risks to be accurate, the relations between fluctuations and trends in prices of instruments in money and capital markets and gold prices must be predicted.

In this context, in our study, we aim to regulate pricing behavior with organized structures, create free market conditions, develop and diversify gold and gold-based instruments, activate inefficient resources within the financial system, ensure that idle and dysfunctional resources are brought into the economy, reduce unregistered activities. In order to support development of the economy, enrich investor base, complete integration of individual and corporate investors with international markets, ensure and maintain price stability in the markets, the actors and activities of the gold markets in our country were discussed, and their contributions to the economic system in general and the financial system in particular were evaluated.