Banks, precious metal intermediary institutions, authorized institutions, joint stock companies engaged in precious metal production and trade, and companies opened in Türkiye by foreign institutions engaged in precious metal production and trade, which are authorized to trade in accordance with the Stock Exchange Regulation and other relevant Exchange regulations after obtaining an operating license from the Ministry of Treasury and Finance can make transactions in the Precious Metals Market (PMM). All of the above-mentioned institutions are called precious metal intermediary institutions.
Retail investors cannot trade PMM directly; however, they can transmit orders/transactions through the customer account via an intermediary institution authorized to trade. Similarly, investment company's mutual fund’s orders/transactions are transmitted through the intermediary institution authorized to trade in KMP.
Exchanges are the platforms where the price of any product is formed in the most effective way. There are many sellers in the stock markets both in terms of supply and many buyers in terms of demand. For this reason, the sale and purchase of a product can be realized more easily. In addition, since the stock markets operate according to certain rules, the possibility of arbitrary price formation is very limited. For this reason, exchanges provide the most suitable environment for both buyers and sellers in the buying and selling process.
I. Standard Precious Metals: Standard precious metals with the following characteristics can be traded in the Precious Metals Market:
A) Standard Unprocessed Gold: Gold in the form of bars or ingots with a purity of at least 995/1000, the qualities of which are determined by the Ministry of Treasury and Finance (Ministry),
B) Standard Unprocessed Silver: Silver in the form of bars, ingots or granules with a purity of at least 99.9%, the qualities of which are determined by the Ministry,
C) Standard Unprocessed Platinum: Platinum in bars or ingots with a purity of at least 99.95%, the qualities of which are determined by the Ministry,
D) Standard Unprocessed Palladium: Palladium in bars or ingots with a purity of at least 99.95%, the qualities of which are determined by the Ministry.
The accepted standard bar and bar bar types are as follows:
a) Mini Bar : 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
b) Ingot: 1 kg
c) Large Bar: Ingots over 1 kg
d) Granule: Packaged in the form of a bag, granules of various weights (Only for silver)
II. Non-standart Precious Metals: Non-standard precious metals with the following characteristics can be traded in the Precious Metals Market:
A) Non-standard unprocessed gold: Gold in the form of ingots, bars, dore bars, granules, powder or scrap with a purity of less than 995/1000 (except 995/1000 purity),
B) Non-standard unprocessed silver: Silver in the form of ingots, bars, dore bars, granules, powder or scrap with a purity of less than 99.9% (excluding 99.9% purity),
C) Non-standard unprocessed platinum: Platinum in the form of ingots, bars, dore bars, granules, powder or scrap with a purity of less than 99.95% (excluding 99.95% purity),
D) Non-standard virgin palladium: Palladium in the form of ingots, bars, dore bars, granules, powders or scraps with a purity of less than 99.95% (excluding 99.95% purity).
III. Precious Metals Produced from Ore: Precious metals in the form of dore bars, granules and other forms produced from ore domestically are subjected to refining process in refineries established in Türkiye and delivered to the Stock Exchange vault within seven business days following the completion of the refining process and traded in the Precious Metals Market.
In the Precious Metals Lending Market, borrowing transactions are carried out for standard unprocessed precious metals in the form of bullion for gold, platinum and palladium, and in the type of bullion and granule for silver. Bullion refers to 1 kilogram of precious metal.
In the market, the precious stones defined in Decree No. 32 (rough diamond, diamond, ruby, emerald, topaz, sapphire, , chrysolite, pearl) are traded in raw natural, polished natural, polished and/or physically or chemically treated natural stones, raw synthetic stones and polished synthetic stones. Goods containing or made of precious stones that have been previously traded and registered in the Stock Exchange is carried out outside the Exchange. These transactions are notified to the Exchange within the framework of the principles specified in the Exchange legislation.
Precious metals refers to gold, silver and platinum groups (platinum grou palladium, rhodium, iridium, ruthenium and osmium mines) are considered as precious metals. These are considered noble metals because they resist acid and other reagents and do not corrode easily, although silver tarnishes. The term precious emphasizes high value and rarity, and these metals are attractive, durable, and easily workable. Precious metals are the most commonly used metals in jewelry and precious goods making.
Precious natural stone refers Stones stated in Decree No:32. Namely; rough diamond, diamond, ruby, emerald, topaz, sapphire, , chrysolite, pearl in all types and shapes.
Precious synthetic stones refers to a precious stone that is mixed or coated with any foreign substance, composed by ray, high pressure or high temperature, produced synthetically or semi-synthetically.
Precious goods refer to goods containing or made of precious stones that have been previously traded and registered in the Stock Exchange
In the Precious Metals Market, the session refers to the period between 16:10 on each working day and 16:00 on the next working day. There is a session break between 23:45-08:00 at night.
In other words, transactions can be made in the Precious Metals Market for approximately 16 hours, 5 days a week.
Unlike other markets of our exchange, the settlement of the precious metal subject to the transaction in the Precious Metal Market (PMM) is carried out physically. Buyers who buy gold or other precious metals from PMM can physically receive the precious metals they have purchased from the market from the storage vault after paying their cash obligations after the settlement transaction is completed.
The "Delivery versus Payment" system is used in settlement transactions. In other words, a member cannot get its receivable without paying its debt. With this system, the exchange risk of the settlement is eliminated.
Troy Ounce is a unit of weight used to calculate the weights of precious metals. The name "Troy" comes from the French city of Troyes. It is usually used only "ounce". 1 troy ounce is equal to 31.1035 grams. 1 kg corresponds to 32.1507465 ounces.
The troy ounce is about 10% heavier than the standart ounce (avoirdupois ounce. 1 avoirdupois ounce weighs 28.349 grams.
Carat (ct) comes from the Arabic carat, and carat means carob seed. In jewelry, it is a weight measure generally used for precious stones, and 1 carat is equivalent to 0.2 grams.
Karat (kt) is used in the 24-point system to show the purity of precious metals. Such as 24 carat gold, 18 carat gold.
In precious metals, purity is used to express the amount of pure precious metal in a precious metal ingot/article.
Three systems are used when stating the purity for the precious metals.
In the 24 carat (or carat) system, which is mostly used for jewelry; The purity of the precious metal is expressed over 24 units. For example, the expression 18 carat gold is used to explain that the amount of pure gold in 24 units of jewelry is 18 units.
The system mostly used for unprocessed precious metals is the thousand (fineness) system. In this system, the purity of gold is stated as a pure precious metal within 1000 units. For example, 24-carat gold is pure gold and is expressed as 1000 fineness (milligrams). For example, 22-karat gold has a purity rating of 22/24 and contains 91.6%, or 916 unit of pure gold per gram. Likewise, 18 carat gold contains 750 miligrams(milyem) per gram, and 14 carat gold contains 583 milyem per gram.
The third system that expresses the purity of gold is the percentage system. In this system, the amount of pure gold in a bullion/item is expressed as a percentage.
To give an example among the three systems; 18 carat gold in the carat system, corresponds to 750 milyem in the thousand system and 75% gold in the percentile system.
There are two main market type in gold transactions in the world: over-the-counter markets and organized markets.
Our Market, which is an organized markets, operates based on spot transactions. The physical delivery of gold and cash settlement takes place at the time of the transaction or on the term when the transaction will be exchanged. Examples of other stock markets in the world that operate in a somewhat similar way to our market are the Hong Kong Gold Exchange and the Shanghai Gold Market.
Examples of over-the-counter markets include the London Bullion Market Association (LBMA), the largest gold market in the world, the Swiss Gold Market, and the Dubai Multi Commodity Centre.
Apart from these, gold is the subject of futures transactions in the Chicago Mercantile and Tokyo Commodity Exchanges.
World Gold Council (WGC), London Bullion Market Association (LBMA), Dubai Multi Commodities Centre (DMCC), The Silver Institute (SI), World Federation of Diamond Exchanges (WFDB), London Platinum and Palladium Market (LPPM), Kimberley Process Certification System(KPCS), OECD (Organisation for Economic Co-operation and Development, within the scope of responsible supply chain practices)
Our exchange is a member of the London Bullion Market Association (LBMA), Kimberley Process Certification System (KPCS) and World Federation of Diamond Bourses (WFDB).
The gold fixing price is announced by the ICE on behalf of London Bullion Market Association(LBMA) at 10:30 and 15:00 London time, and similarly, the Silver fixing price is announced by the London Bullion Market Association at 12:00 London time. Platinum and palladium fixing prices are announced by the London Platinum and Palladium Market(LPPM) at 09:45 and 14:00 London time.
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The most important source of supply in precious metals is mine production. China, Australia, USA, Russia, Peru and South Africa rank first in world gold production, which is approximately 3000 tons per year, while Mexico, China, Peru, Australia, Russia is important for silver production, totalled approximately 26,000 tons per year; South Africa ranks first in platinum production and Russia ranks first in palladium production. In addition to mine production, precious metals are also supplied to the market through scrap supply, where precious metals in stocks are reintroduced to the market. Another source of supply is sales resulting from transactions made to hedge against risk.
Gold and silver are the most well-known precious metals and are known for their advantages in many sectors ranging from investment, jewelry production and nanotechnology to electrical-electronics, industrial sector and medicine. Platinum and palladium are demanded by the jewelry industry, the automotive industry and the industrial sector. Today, precious metals attract the attention of investors as well as their physical use in various sectors. Investments are made in precious metals in physical forms such as bullion, coins, bars, etc., or in paper-based forms such as mutual funds, exchange-traded funds and futures-option contracts.
Türkiye has significant advantages in precious metal transactions. The main ones are; Türkiye's geographical location, developed gold culture, liberalization of precious metal trade, especially gold, international time zone, achievements and strong potential of the Turkish jewelry industry. In addition, the existence of an organized market such as the Borsa Istanbul A.Ş. Precious Metals and Precious Stones Market, where precious metal buying, selling and lending transactions are carried out, provides Türkiye with a significant advantage in precious metals.
Gold has been mined in Türkiye since 2001. Approximately 30 tons of gold is extracted annually from the mines in Türkiye. Türkiye's gold reserves are estimated to be approximately 700 tons. Important gold mining areas are İzmir Bergama/Ovacık, Balıkesir/Havran, Gümüşhane/Mastra, Manisa/Salihli-Sart and Uşak/Eşme-Kışladağ. The annual mine supply of silver in our country has been in the range of 180-200 tons per year in recent years, and our silver reserves are around 3850 tons.
Türkiye is ranking as third in jewelry production, the first in minted coin production, the fifth in the jewelry consumption. In the jewelry sector in Türkiye; There are more than 5,000 manufacturers, more than 35,000 retail outlets, and more than 250,000 jobs.
1) A comprehensive compliance framework for the responsible supply chain of mines from conflict-affected and high-risk areas (Annex I);
2) A mineral supply chain policy document (Annex II) that provides a common set of principles;
3) Risk mitigation measures and development measurement indicators (Annex III) that mining/refinery companies can use with the possible support of post-refinery companies
4) Two Appendices on "tin, tantalum, tungsten" and "gold" specially prepared for the difficulties associated with the supply chain structures of these mines. The appendices contain specific compliance recommendations tailored to companies' different positions and roles in their supply chains.
You can reach the Precious Metals and Precious Stones Operations Directorate by phone at (0212) 292 66 00 or by e-mail at kmktm_info@borsaistanbul.com.
