25.04.2025 11:32
In 2022, gold certificates launched to bring citizens' under-the-mattress investments into the financial system yielded 21% more returns compared to physical gold, and are traded on Borsa Istanbul.
The interest of investors in gold in Turkey has driven the price of gold certificates traded on Borsa Istanbul to record levels. The certificates are traded at a premium of 21% compared to the physical gold they represent, which is 0.01 grams. This difference has emerged particularly due to the increasing global trade tensions and the rise in gold prices since March, leading investors to turn to certificates.
BOTH TAX ADVANTAGE AND EASE OF PHYSICAL GOLD
According to Bloomberg's report, gold certificates are gaining popularity among investors due to their ease of buying and selling through mobile applications, low transaction spreads, and tax advantages. Additionally, the ability to convert them into physical gold when desired attracts individuals seeking a safe haven.
WHAT IS A GOLD CERTIFICATE (ALTINS1)?
An easy way to invest in gold through "online" channels is through the Gold Certificates issued by the General Directorate of the Mint and Stamp Printing House, which were offered to the public in November 2022. The Gold Certificates began trading on the Borsa Istanbul Commodity Market under the code "ALTIN.S1". This asset is based on physical gold with a purity of 0.995, and each certificate corresponds to 0.01 grams of gold. Therefore, an investor who buys 100 ALTINS1 certificates from the stock exchange effectively purchases 1 gram of gold.
HOW TO BUY?
Investors can open an account at any brokerage firm authorized to trade on the stock exchange and can buy and sell "ALTINS1" certificates just like stocks. The smallest order for certificates can be executed with 1 unit. The largest single order is limited to 1 million lira... The transaction cost for buying and selling Gold Certificates is equivalent to the commission paid to brokerage firms.
ADVANTAGES
- The withholding tax rate on profits from Gold Certificates is 0%. No tax is levied on the income generated from this asset.
- Buying and selling transactions of Gold Certificates can be done quickly and easily online through the platforms of brokerage firms.
- The price range for buying and selling ALTINS1 is quite narrow. Thus, potential losses arising from wide buying and selling spreads, as seen in physical gold purchased from jewelers or "gram" gold transactions from bank accounts, can be avoided.
- Since ALTINS1 is stored as a certificate in the investor's account, it does not carry any storage burden or risk of theft.
TURKEY IS AMONG THE WORLD LEADERS IN GOLD
Turkey is among the leading countries in gold consumption worldwide. When domestic production falls short, imports come into play, and the Central Bank has the primary right to purchase these golds. Gold certificates were launched by the government in 2022 to bring individuals' under-the-mattress savings into the financial system. They particularly target digital investors as an alternative to traditional markets like the Grand Bazaar.