Over the past two years, the precious metal markets, particularly gold, have experienced a significant uptrend. How have buyers reacted to this phenomenon? Let’s delve into some observations.
Understanding the appreciation of gold in Turkish Lira requires a careful analysis. Since January 1, 2023, gold has appreciated by 30% in terms of ounces and 122% in terms of Turkish Lira, while the dollar has seen a 72% increase. This substantial increase in the value of gold in Turkish Lira is closely tied to the import policy implemented over the past year, leading to a premium over the international market due to the mismatch between supply and demand in the domestic market. Investors have capitalized on this premium by investing in gold.
The presence and height of inflation have particularly incentivized investors to flock towards gold, further driving up the premium. This has led to a deadlock scenario; if demand for gold decreases among citizens, the current premium price will revert to its normal level. However, it's unlikely that demand for gold will decrease significantly, given its status as the safest investment option.
So, what are precious metal customers interested in these days?
While bracelets and jewelry were once indispensable choices for investors, they have been gradually replaced by mini bullions and silver products. This shift signifies a transition from jewelry items being considered investments to being marketed primarily for their aesthetic value.
Refinery products are now preferred within the investment category, with silver gaining significant attention due to its higher returns compared to gold over the past year.
At AgaKulche, we have effectively managed this trend by offering a wide range of silver products, both domestically and internationally sourced, to cater to investor demands, resulting in significant traction.
How do you evaluate the introduction of AgaKulche Shop by the AgaOne group?
In a country that ranks first in the field of jewelry, it’s widely acknowledged that there’s a need for innovation and transformation. We took the initiative with AgaKulche e-commerce to ignite this change, offering precious metal products along with an enhanced service network, catapulting ourselves to the top ranks across all marketplaces.
By bringing together products from Aleks Metal Refinery and select refineries in our country, alongside importing retail products from renowned international refineries and mints, we have expanded our product range to serve a much broader customer base.
With AgaKulche Shop, we aim to bridge the gap between investment, gift, and collector markets, offering a diverse range of products not commonly found in jewelry stores. Customers can now also benefit from secure resale options through AgaKulche shops.
How will AgaKulche Shop contribute to the retail sector?
Primarily, offering alternative products in retail stores will attract new customers or retain existing ones by introducing novel products. Access to products from reputable global brands and mints will enhance credibility.
Furthermore, leveraging technology-based services will differentiate AgaKulche shops from competitors, putting them a step ahead in the trade. While each store typically caters to a specific local customer base, in the future, they will have the opportunity to sell nationwide, leading to increased sales volume and growth.
