13.05.2026 14:00
The Association of Gold Refineries' call to stop the use of drawn gold caused a crisis in the Grand Bazaar. While the Istanbul Jewelers' Chamber stated that the practice has no legal basis, tradesmen reacted by arguing that the decision aims to direct business toward refineries.
A letter sent by the Gold Refineries Association to stop the use of drawn gold has sparked a major debate in the Grand Bazaar. The Istanbul Chamber of Jewelers announced that the practice has no legal basis, while Grand Bazaar tradesmen reacted to the decision, stating they would continue using the traditional payment method.
REFINERIES' LETTER STIRS CONTROVERSY
A crisis has erupted in the Grand Bazaar, one of Turkey's largest trade centers, over the payment method known as "drawn gold." The Gold Refineries Association, established last month, sent an email to local tradesmen stating that drawn gold, used for years in debt and credit payments, should no longer be used. The association's call prompted a strong reaction from Grand Bazaar jewelers. The Istanbul Chamber of Jewelers also intervened, declaring that such a decision has no legal basis. Despite the letter raising tensions in the area, tradesmen decided to continue using drawn gold. However, it was stated that this development has increased existing unrest in the Grand Bazaar, which has faced pressure from various institutions in recent years.
ALSO KNOWN AS "DRAWN GOLD"
Drawn gold, also referred to in the industry as "drawing gold" or "cut gold," is typically obtained by drawing 24-carat pure gold into thin strips using press machines. Preferred as an investment tool due to its lack of workmanship and low buy-sell margin, the product stands out for being more cost-effective than packaged gram gold. It is also used as a primary payment tool in credit and debt relations among tradesmen in the Grand Bazaar.
"SALE TO END CONSUMERS IS BANNED, BUT TRADE IS FREE"
According to industry representatives, although the sale of drawn gold to end consumers is banned, trade between authorized companies is free. It is noted that there is a circular supporting this practice. Despite this, it was stated that the Gold Refineries Association, established in April by nine refineries, requested the cessation of payments with drawn gold, citing the confiscated smuggled gold incident in Şırnak. The letter sent to the association's members noted that as of May 4, 2026, refineries should not produce, buy, or sell drawn gold.
"DRAWN GOLD WILL BE CONVERTED INTO BULLION"
The sent letter stated that existing drawn gold could only be used for debt payments with specific documents. It also indicated that drawn gold collected during the day would be sent to refineries and converted into gold bullion. It was conveyed that fractional payments to tradesmen and manufacturers would be made by cutting stamped gold bullion. The letter also called for reporting individuals and organizations continuing to produce and trade drawn gold.
ISTANBUL CHAMBER OF JEWELERS: NO LEGAL BASIS
Following the Gold Refineries Association's letter, the Istanbul Chamber of Jewelers issued a statement on its official social media account. The statement emphasized that there is no official regulation banning drawn gold, using the following expressions: "There is no situation such as banning the exchange of drawn pure gold, which has been essential for production for centuries. There is also no new regulation published in the Official Gazette."
This statement strengthened debates that the association's initiative has no legal basis.
TRADESMEN REACT: THE SECTOR WOULD STOP
Grand Bazaar tradesmen, however, claimed that the initiative aims to direct trade to refineries. One jeweler expressed his reaction: "This decision seems like an effort to sideline drawn gold and direct us to gold produced by refineries. If implemented, the sector would stop. Today, I want to buy 220 grams of gold; I have to cut it for that. But they say no cutting, you have to buy standard packages. Moreover, gram gold includes workmanship, which increases cost. There's a difference of 7.5 grams per kilogram, and I don't earn that much."
Another tradesman noted that the letter does not even specify which ministry it refers to, saying: "It's not right to cite the smuggled gold incident in Şırnak as a reason and extend it to the entire sector. Such a practice cannot exist. The Istanbul Chamber of Jewelers has made the necessary correction, but all chambers and associations in Turkey should also react to this. What matters is that I buy and sell with an invoice."