Exports to boost Turkey’s gold sales
London (Reuters) – After a slump, Turkish jewelers have clinched more deals with countries like Russia and the United Arab Emirates in a bid to diversify export markets and boost exports in 2007. One of the world’s top gold jewelry exporters, Turkey suffered from high and volatile world gold prices in 2006, which chopped demand from consumers and wholesalers. Exports recovered by a modest 17 percent in the first five months of the year, helped by lower world gold prices. Murat Akman, Turkey general manager of World Gold Council (WGC), said gold falling back to around $650 an ounce triggered physical buying in May but diversifying export markets was key. «In the past our jewelers mainly focused on the US market but now they’re doing more business with countries like the UAE and Russia,» Akman told Reuters in a telephone interview. He said customers from the United States, Turkey’s biggest export market, and Italy were not willing to negotiate their deal terms which forced jewelers to look at other countries. «But customers from the Middle East or Russia want to settle for a deal which would please both parties and now our jewelers have started to focus on those markets more,» he added. Gold jewelry exports to the US, while still the biggest part of total exports, declined by 11 percent in the first five months of this year, while exports to the UAE and Russia increased by 68 and 260 percent respectively. «Formerly small firms in Russia have achieved a significant cash flow, and the proximity of our countries helps,» Oguz Ozdemir, export and import director of Favori Kuyumculuk, said. Better 2007? «We cannot neglect the US market but lately we focused on developing new export markets,» Mutlu Oktem, secretery-general of the Istanbul Precious Metals Exporters’ Association, said. «I believe this will boost our exports this year,» he added, predicting exports could reach $1.3 billion, or 100 tons, up from last year’s 85 tons, equivalent to $980 million. World gold prices dipped to a three-month low of $642.90 an ounce this week and have fallen almost 7 percent since early May, after failing to break above $690 level.
