Turkey Property to be Boosted by New Diamond and Precious Stones Market

Turkey is set to launch its first diamond and precious stones market on April 4 with the aim of becoming one of the major players in the world markets. Their aim is to achieve the kind of success that they have enjoyed in the gold business, and the market will be operating under the Istanbul Gold Exchange (IAB). The IAB has 85 members and belongs to the World Federation of Diamond Bourses.

This could potentially be a massive boost to the economy, and at a time when Turkey is shining as one of the best property investments in Europe, this can only be good news for the Turkey property market as well.

The World Diamond Council has said that Turkey is amongst the top five countries in the world gem and jewellery market, and is one of the top countries for production alongside India, Italy and China and one of the top three for consumption. Raw material is sourced from Africa, Canada, Australia and Russia. The main retail markets are in the US, Far East, Middle East, Europe and Asia.

The gold industry Turkey has huge potential but needs adequate funding in order for production levels to meet demand. The demand for gold is increasing especially during the current crisis as it is seen as being a safe haven. Turkey’s gold industry has an estimated 700 tonnes of usable gold and another 6500 tonnes of untapped gold.

The country is already the leading gold producer in Europe and could become an important global producer with adequate investment. In 2009 it produced 15 tonnes of gold which increased to 38 tonnes of gold at the end of 2010 but this is only enough to cover 10% of domestic demand. The value of the Turkish mining sector was $7.45 billion in 2010 and it is estimated that by the end of 2014 this value will rise to $11.8 billion.

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