Gold Hoarded “Under Mattresses” in Türkiye: Is It an Economic Problem?

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rom a macroeconomic perspective, gold savings kept under mattresses represent idle wealth. It is estimated that Turkish households hold around 4,000–4,200 tonnes of gold. At current prices, this is worth around $550 billion. Of this amount, 1,000–1,200 tonnes are held within the financial system (in the Central Bank and in bank gold accounts), while an estimated 3,000 tonnes remain outside it. In other words, it is estimated that there are 3,000 tonnes of gold under mattresses, with an economic value of 415 billion dollars! In my opinion, it is worth even more than half a trillion dollars!

The equivalent of the current situation

If you ask what this figure means, I will briefly explain: it represents around 30 KAAN-scale defense industry projects. It signifies the end of structural unemployment in Türkiye, with 8,300 factories employing 4 million people. It means around 500 world-class universities. It means 1,400 city hospitals, each with 1,000 beds. It means becoming Europe’s largest energy powerhouse with 380,000 MW of wind energy capacity. It also means 700,000 MW of solar energy capacity. This is six times Türkiye’s current installed electricity capacity, which would eliminate the need for energy imports and close the current account deficit. Shall I continue? It means 400 Eurasia tunnels, 185 Çanakkale bridges and 350 Osmangazi bridges. Therefore, the question we are seeking an answer to is very valuable. We need to address the issue within this framework.

According to a 2025 ING Türkiye study, physical gold held under mattresses is the most popular savings instrument in our country (35 per cent). It is not difficult to guess what comes second: cash foreign currency held under mattresses (28 per cent). Third on the list are TL deposit accounts (21%), and so on.

In order to answer the question of how to bring gold held under mattresses into the financial system, we must first understand why it is outside of it and grasp the characteristics of the saver.

There are two essential pillars of the economy: trust and stability. The above figures clearly show that Türkiye’s long-standing preference for gold stems from a lack of trust in the financial system. Past periods of high inflation, collapsed banks and financial crises have damaged the trust of the Turkish people. Combined with religious sensitivities, this has led to the widespread accumulation of physical gold over the years, with people adopting the mindset of ‘just in case, I’ll keep it under my control’.

What has been done so far?

Over the past fifteen years, various tools have been introduced in Türkiye to incorporate ‘mattress gold’ into the financial system. For example, in 2011 the Central Bank of the Republic of Türkiye (CBRT) introduced a gold option to its Reserve Requirement Mechanism (RRM), leading to the development of gold banking. Banks drew physical gold into the system through gram gold accounts. However, the requirement to import gold in order to reach the targeted volume limited the release of existing under-the-pillow stocks. Although approximately 60 tonnes of gold were brought into the system in subsequent years through scrap gold campaigns organized by banks and collaborations with jewelers, society’s adoption of gold as a financial instrument remained limited.

In 2017, the Treasury and Finance Ministry issued gold bonds and gold-backed lease certificates, which aimed to build trust by allowing physical gold to be redeemed in kind at maturity and offering additional returns in gold. However, these lost their appeal in an environment of high inflation, and the amount collected remained limited to a few tonnes. The Mint Gold Certificate, issued by the General Directorate of the Mint and Stamp Printing House and traded on the Istanbul Stock Exchange since 2022, has attracted new investment to the market by offering the opportunity to invest in small amounts of digital gold in a safe way. However, it has not significantly reduced the existing stock of gold.

Over the past fifteen years, various tools have been introduced in Türkiye to incorporate ‘mattress gold’ into the financial system. For example, in 2011 the Central Bank of the Republic of Türkiye (CBRT) introduced a gold option to its Reserve Requirement Mechanism (RRM), leading to the development of gold banking. Banks drew physical gold into the system through gram gold accounts. However, the requirement to import gold in order to reach the targeted volume limited the release of existing under-the-pillow stocks. Although approximately 60 tonnes of gold were brought into the system in subsequent years through scrap gold campaigns organized by banks and collaborations with jewelers, society’s adoption of gold as a financial instrument remained limited.

Consequently, while these instruments have provided technical diversity, they have failed to fundamentally resolve the issue of gold held under mattresses, as they have not fostered the strong trust and behavioral transformation required to bring gold into the system without selling it or undermining the sense of ownership.

Why was It not successful enough?

This situation is better explained by structural factors relating to trust, behavior and perception than by a lack of technical tools. Research shows that a significant proportion of citizens view gold as ‘too valuable to entrust’ and are deeply mistrustful of handing it over to banks and the state. It is also important to highlight a paradox regarding trust. Although negative responses to calls to enter the system are driven by a lack of trust, it should also be noted that some citizens deliver their gold to local jewelers in the hope of making a profit.

Another reason is that the financial returns offered are not appealing to individuals. In a high inflation environment and at a time when gold prices were already rising strongly, the annual returns of 0–2.4 per cent offered on gold deposit accounts and gold bonds were not considered attractive; in some products, the fact that the return was in Turkish lira reinforced the feeling of relative loss when the gold price rose. Concerns about liquidity and access also played a part: while physical gold held at home can be converted into cash immediately, individuals perceived the maturity, procedures and physical delivery conditions in the banking system as a loss of flexibility.

In addition, the loss of craftsmanship and sentimental value when gold jewelery is brought into the system makes it difficult to convert gold, particularly family heirlooms, into financial instruments. The perception that registration could pose future risks through taxation, questioning or possible regulations has also led to a continued belief that keeping gold unregistered is ‘safer’. In these circumstances, the state’s objectives of strengthening reserves and financing have not been sufficiently aligned with individuals’ motivation to protect themselves from uncertainty.

International comparisons: The situation and models in other countries

International comparisons show that hoarding gold is not a universal problem. Rather, it is closely linked to a country’s cultural structures, the depth of its financial system, and the relationship between the state and its citizens. The issue is more prevalent in countries with a cultural affinity for gold. In contrast, in economies with robust financial infrastructures and high levels of trust, gold accumulation is not considered a policy issue.

International comparisons reveal that Türkiye and India have taken the most concrete steps towards incorporating gold held in private hands into the financial system, but the outcomes vary significantly between countries.

Leasing model

The gold leasing model is based on the principle of providing financing to the real economy without selling the gold held in people’s homes and without changing ownership. At the same time, it generates returns in gold for the owner of the gold. This approach aims to transform gold from a mere store of value into a productive asset. The model’s fundamental promise is that ‘gold earns gold’; in other words, investors focus not on monetary interest, but on increasing the amount of gold they hold.

Working principle of the gold leasing model

This structure is based on a three-way relationship between the gold-owning investor, the business using the gold and the intermediary platform. Investors entrust their physical gold to the platform for safe storage in vaults, and the gold is leased through the platform rather than directly. Payment in the form of gold returns is a critical element that eliminates inflation and currency risk.

Businesses that lease gold are usually jewelers, refiners, miners and industrial firms that use gold in their production processes. By leasing gold instead of purchasing it, these businesses can produce goods without tying up capital, gain natural protection against price fluctuations (hedging), and obtain off-balance-sheet financing. The lease term is usually short-term, but can be renewed if both parties are satisfied. The platform’s role is to match investors with businesses, perform risk analysis, manage contracts and provide secure storage.