Gold Demand Under Strain
Global gold demand in 2025 surpassed 5,000 tonnes for the first time on record, driven by a rapid price rally and heightened investment flows, according to the World Gold Council’s Gold Demand Trends: Q4 and Full Year 2025 report. Total global demand, including over-the-counter transactions, exceeded the five-thousand-tonne threshold and reached an unprecedented US$555 billion in value, with 53 all-time price highs recorded during the year.
Türkiye’s gold market moved differently from global patterns. The combination of global price strength and local cost pressures created a distinct demand structure. Globally, investment flows into gold-backed ETFs and physical forms such as bars and coins helped sustain overall demand growth. But in Türkiye, the response of physical gold consumption to these trends was constrained by local price dynamics and purchasing power shifts.
In Türkiye, jewellery demand contracted sharply in 2025, dropping to 32.8 tonnes from 40.9 tonnes in 2024. Fourth-quarter jewellery demand was 7.7 tonnes, among the lowest quarterly readings since 2020. High inflation increased production costs and pushed retail prices higher, putting a cost ceiling on household purchases well below global price levels. Domestic premiums on physical gold rose above USD 300 per ounce in late 2025, further widening the gap between global and local physical gold costs and restricting consumer access.
Bar and coin investment in Türkiye also showed signs of constraint. Annual demand for these forms fell to 71.1 tonnes in 2025 from 112.2 tonnes in 2024, a 37% annual decline. Fourth-quarter demand was 21.3 tonnes, a reading consistent with continued interest but reduced capacity. While global bar and coin demand hit multi-year highs as investors sought safe-haven protection against geopolitical risk and monetary instability, Türkiye’s decline reflected eroded purchasing power and elevated local cost structures.
The only significant upward movement in Türkiye’s gold market in 2025 came from official channels. The Central Bank of the Republic of Türkiye continued to add gold to reserves, contributing to an official stockpile that approached 644 tonnes by the end of the year. This divergence between official accumulation and private physical demand highlights a market split: institutional and reserve demand strengthened while household access weakened.
In the context of the World Gold Council’s global findings, Türkiye’s diverging pattern stands out. Globally, weak jewellery demand was offset by robust investment flows in ETFs and bar and coin demand, all supported by record price momentum. In Türkiye, however, the combination of high local premiums, inflation-driven cost pressures and eroding household purchasing power limited physical demand, even as global conditions pushed gold into record valuation territory.
The data show that Türkiye’s gold market in 2025 was not a simple reflection of global trends. It was reshaped by domestic price dynamics and local cost structures that constrained physical access for households, even as global demand hit record levels. Official reserve accumulation increased. Household capacity to acquire gold decreased. The issue is not demand per se. It is who can access gold and at what cost in the Turkish market.