Turkish government says home-hoarded gold is hurting the economy

For generations, many people in Turkey have chosen to keep their savings not in bank accounts but in gold stored at home — a practice often described as keeping money "under the pillow." The habit developed as a way to guard against financial uncertainty, rooted in a deep-seated distrust of the formal banking system.

Government concerns

Turkish authorities are now openly stating that this long-running tradition is creating problems for the national economy. When a large share of gold savings sits in private households rather than moving through the financial system, those resources are not being put to productive use — they are not functioning as investment capital, loan reserves, or other tools that could otherwise stimulate economic activity.

Origins of the practice

The habit of hoarding gold at home did not emerge without cause. It reflects a direct response by citizens to past experiences that undermined confidence in banks and financial institutions. Gold is traditionally viewed as a safe and stable way to store value, seen as less exposed to risks such as bank failures or currency instability, and as an asset that can be quickly accessed in a crisis.

This very distrust explains why so many people in Turkey continue to favor physical gold over bank deposits or other financial instruments, even as the government urges a change in behavior.

Economic implications

The government's position suggests that the volume of gold held in private homes is significant enough to be considered a meaningful factor in how the country's financial system functions. If these savings were redirected into the formal banking system, they could, in theory, serve as an additional resource for financing broader economic activity.

The situation highlights a wider challenge: how the government and financial institutions can rebuild public trust in banks so that citizens become willing to shift financial habits that have persisted for years.