Gold gram difference opens with gold certificate

The gap between the Mint Gold Certificate traded on the Borsa Istanbul stock market commodity market and the gold on the market began to attract attention. The price of the Gold Certificate, which corresponds to 0.01 grams of gold, reached 14.29 TL, while the price of 100 certificates, which corresponds to 100 grams, became 1429 TL. However, the price of a gram of gold was traded at 1242 TL on the spot market.

Experts claimed that the widening market gap between the Grand Bazaar and dollar banks increased the trend towards gold certificates. On the other hand, factors such as physical gold holding difficulties and withholding tax exemption also influenced the orientation of gold certificates.

OPEN DIFFERENCE

In November of last year, the General Directorate of the Mint and Stamp Printing Office offered the Gold Certificates of the Mint to the public. The investment tool, which aims to bring investments “under the pillow” to the economy, widened the gap with gold.

The price of the Gold Certificate, each certificate equivalent to 0.01 grams of gold, exceeded 14 TL. Thus, the price of 100 certificates corresponding to 1 gram reached 1429 TL. However, the price of a gram of gold in the spot market is at the level of 1242 TL.

Yellow line: Increase rate in Gold Certificate – Blue line: Increase rate in grams. Chart: Currencies

On the other hand, since November 20, when the Gold Certificate began to be processed, the price of an ounce of gold increased 13.75 percent and the price of a gram of gold increased 18.6 percent due to the movement of the dollar. /TL. However, the gain on Mint Gold Certificate was 36.35% during this period.

At the end of November, a certificate was trading at 10.52 TL, while a gram of gold was also trading at 1051 TL. Meanwhile, the gap between the two investment instruments began to widen at the end of March.

Mint Gold Certificates traded on the stock exchange with the code ALTIN.S1 were more preferred due to low bid-ask spreads, the ability to buy and sell at low commissions, the absence of the disadvantages of physical custody, and the no income tax withholding on this asset.

‘WE HAVE BEEN EFFECTIVE IN OPENING UP THE CURRENCY DIFFERENCE’

Dynamic Investment Chief Economist Enver Erkan, who made assessments on the matter to Sozcu.com.tr, stated that a bilateral price anomaly began to occur between gold and gold certificate.

Erkan affirmed that the widening of the difference between the exchange rates in the interbank market and the places where currencies are exchanged, directs the investor towards the gold certificate, and as the market/interbank difference in the dollar opens, the trend towards gold certificates has also increased. If the investor cannot buy one instrument, he turns to the other ”.

However, Erkan recalled that the margin increased here as well, saying, “Therefore, it is beneficial for those who invest in gold certificates to follow the gold certificate chart, not the gold price chart. As the election approaches, these openings may occur,” he said.

‘A TOOL USED BY THOSE WHO THINK OF BUYING AND SELLING’

Commenting on the difference between gold prices and gold certificate prices, gold and money markets specialist Mehmet Ali Yıldırımtürk stated that gold certificate is a preferred tool mainly for those who are considering buying and selling. instead of physical gold for savings purposes.

Stating that the Gold Certificate paralleled the price of gold when it first came out, Yıldırımtürk said: “Those who got out of the stock market may be buying gold from there. Brokerage firms also began to establish gold funds. It looks like there will be gold transactions in the market again,” he said.

Stating that it is difficult to understand the difference, Yıldırımtürk said: “It is a tool that those thinking of buying and selling rather than physical gold for savings purposes are more likely to turn to. Here you buy from the physical, you have gold in your hand. Funds are bought and sold there. There are no taxes on those funds. Other funds are taxed. That’s why it has some charm,” he said.

Stating that the price of the certificate is more expensive than current gold prices is not very attractive, Yıldırımtürk said, “However, there may be a difference that those who do not want to carry money and want to trade from their screen can bear. It is not a very advantageous situation if you buy more expensive gold than you can physically buy,” he said.

TO REDUCE PHYSICAL DEMAND

Yıldırımtürk said that the application for the Gold Certificate is “a work done to reduce the demand for physical gold” and said: “Physical gold is imported from abroad. They offer an excuse that it creates a current account deficit when it is imported. Without “However, this is a physical metal, not a consumer good. The moves made to avoid the figures that the current account deficit is partly caused by gold,” he said.