According to official statistics, Turkey is accelerating the purchase of gold, even surpassing Russia to become the world's number one gold buyer. According to normal economic logic, Turkey should not have such a crazy purchase plan. After all, at present, the COVID-19 epidemic has broken out all over the world, and Turkish foreign exchange income has dropped sharply. On the other hand, due to various reasons, the price of gold has risen rapidly. But apart from the normal economic laws, there are always some other factors that affect a country's purchase of gold.
First of all, Turkey buys gold regardless of economic laws because it has the purpose of dollarization. As early as a few years ago, there were many contradictions between the United States and Turkey. In particular, Turkey's purchase of Russian weapons as a NATO member has greatly dissatisfied the United States. In addition, Turkey once detained American priests, so the United States imposed severe sanctions on Turkey. That sanction led to a sharp depreciation of Turkey's own currency.
In this case, Turkey must be alert to further US sanctions. In order to increase its defense capability and prevent the United States from restricting its economy with dollars, Turkey must actively dollarize, so gold, a precious metal, has become a necessary weapon for Turkey to stabilize its currency and dollarize.
In addition, it is also important for Turkey to diversify its assets and enhance its ability to resist risks. In fact, not only Turkey, but also many countries around the world have been actively diversifying their assets in the past decade.
For example, the COVID-19 epidemic has dealt a very serious blow to the American economy. No matter how the number of employed people increases, there is even a certain wave of unemployment in some areas. The instability of the domestic economy in the United States will inevitably affect the exchange policy between the US dollar and other currencies. Under this fluctuation, those countries that only rely on a single asset are likely to be affected by the international financial environment and cause serious losses to their own economies. Therefore, the diversification of assets has become a powerful way to avoid this risk.