According to BullionStreet- Turkish gold businessmen are bearing in mind several options to avoid US sanctions on their gold trade with Iran.
Turkish Union for Jewelry and Precious Metals exporters said Turkey is a country that buys a bar of gold and handles its processing itself, therefore making the price more attractive. That is why Iran selected us. Simultaneously, there are three gold processing plants in Turkey, all participants of the London Bullion Market Association (LBMA).
Turkey is one of the only five such countries in the world. Gold prices in Turkey is presented at $50-100 lower than the regular price on international market, that is why Iran selects Turkey.
The US authorities are applying a ban on gold sales to Iran as a part of extra unilateral sanctions against the country from July 1. The permissions suggest a ban on selling gold and other precious metals to private and state-run Iranian companies, in addition to individuals holding Iranian citizenship. The new ban first of all recounts to US companies and individuals, even though Washington will surely give effort to attract other countries to join it as well. Challenged by the previously enforced financial sanctions Iran has been enthusiastically buying gold on international market. It is said that Iranians use gold as a currency through trades with international partners.
Thus, in 2012 the mutual trade between Turkey and Iran was more in control of Ankara: Turkey’s export to Iran stood at $9.9 billion, with precious metals establishing $7 billion.
Washington sets its eyes on Turkey-Iran gold trade and has continually called to stop gold deliveries to Tehran.
Analysts said even if the Turkish government regards this calling, Turkish businessmen will find a way to remain trading with Iran. Also added that probabilities are that Turkish dealers will basically begin selling gold to that country and in an indirectly way to Turkey.
In 2012 Turkey’s export of precious metals increased about five-fold on the year and remained at $16.3 billion.
Simultaneously, gold imports in Jan-Apr of 2013 displayed an upsurge by above 500% on the year, which makes new records very possible this year, regardless whether Turkey carries on direct trade with Iran or not.