Many families in Turkey store gold coins and jewelry safely at home instead of keeping their money in banks. This traditional habit, known locally as "gold under the pillow," protects family savings from high inflation. However, government officials and economists warn that holding so much private wealth outside the financial system is harming Turkey's economic future.
In Turkey, gold is a traditional gift for major life milestones, especially weddings. For decades, keeping physical gold has served as a practical defense against rising prices and the weakening Turkish lira, with annual inflation currently hovering around 31%. Economist Selva Demiralp explains that stashing gold at home is a rational response to the country's long history of unpredictable inflation and past banking crises.
Turkish officials estimate that households hold roughly 5,000 tons of gold, worth approximately $600 billion. Finance Minister Mehmet Şimşek and central bank leaders point out that this capital remains idle rather than working in the economy. Because the money is not in banks, financial institutions cannot lend it to local businesses, and importing large amounts of gold each year adds to Turkey's trade deficit.
President Recep Tayyip Erdoğan and government regulators have urged citizens for years to deposit their physical gold into mainstream bank accounts. However, distrust in public institutions runs deep, and many Turkish savers say they prefer keeping their gold hidden at home where they feel their savings are safe.