In case you haven’t been following Turkish news, President Recep Tayyip Erdogan continues to consolidate his power. Many now call him the Sultan of Turkey. So what does that mean in terms of gold price? I’ll get to that shortly. Anyway — in theory — Turkey is a democracy where people vote to elect their leaders. And Erdrogan keeps on getting elected. And candidates he supported won overwhelmingly in the most recent spring election.
So you’d think someone who continues to win re-elections and get his choices into office would be a stabilizing influence, right? And that Everybody must love him, right? In this case, you’re possibly wrong.
Erdrogan’s policies haven’t been good for the country’s economy. Clashes with huge trading partner Russia and huge internal show things aren’t all peaches and cream in the old Ottoman Empire.
Such things predictably trickle down to the economy. Over the past year, the local currency dropped another 30% — the Lira, as you’ll recall from elementary school — against the US Dollar, on top of a 50% drop over the previous five years.