Turkish habit of stashing gold "under the pillow' hurts economy, government says

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-16 • Permanent link

Turkish households have been hiding gold under their pillows for years, but the government is now warning that this habit is hurting the economy. The central bank estimates that around 60% of households in Turkey hold gold at home, with the total value of gold stashed away at a staggering 20 billion Turkish lira. This phenomenon has been particularly prevalent in rural areas, where trust in the banking system is lower.

The government's warning comes as the economy is facing growing pressure, with inflation rates soaring to 15% and unemployment rates hitting a 20-year high. The central bank is urging citizens to deposit their gold into banks, where it can earn interest and help stimulate economic growth. However, many Turks are hesitant to part with their gold, citing concerns over the stability of the banking system and the potential for inflation to erode the value of their savings.

Experts say that the Turkish gold habit is a symptom of a broader issue - a lack of trust in the financial system. Since the 2008 financial crisis, Turkey has experienced a series of economic shocks, including a currency devaluation and a banking crisis. As a result, many citizens have turned to alternative forms of savings, such as gold and real estate. This has led to a rise in informal savings and a decline in bank deposits, which is having a negative impact on the economy.

The central bank is now calling on the government to take action to restore confidence in the banking system. This could include measures such as increasing interest rates, improving financial regulation, and providing support to struggling banks. If the government can address these issues, it may be possible to encourage Turks to move their gold out of the home and into the bank, where it can earn interest and help stimulate economic growth.