Gold Bullion Provided High Real Returns in the Economy.

Gold Bullion at 61-Month High!

Gold bullion has achieved a real return of 47.46% when adjusted for YI-UFE as of October, marking the highest level in the last 61 months on an annual basis.

According to information compiled by AA reporter, the recent rise in geopolitical risks and uncertainties has led investors to seek "safe havens" like gold. The Russia-Ukraine War, Israel's attacks on Gaza, and trade tensions between the US and China are among the main factors contributing to this situation.

In addition to individual investor demand, purchases made by central banks have also influenced the gold price, pushing the ounce price above $4,300 last month. The price of gram gold has attracted attention as it rose to levels around 5,800 lira.

Gold Outperformed Other Investment Instruments

Due to the effects of global fluctuations, gold has clearly stood out compared to other financial investment vehicles whose real returns are calculated by TUIK.

In October, gold bullion provided a nominal return of 87.27% year-on-year, surpassing competitors such as deposit interest, the dollar, the euro, government bonds, and the BIST 100 index.

When adjusted for CPI, the real return of gold bullion was recorded at 40.94%, while the real return adjusted for YI-UFE was 47.46%. This 47.46% gain has gone down in history as the highest real return recorded in the last 61 months, with the last significant return of 47.64% being achieved in September 2020.

Of the last 61 months, gold provided real returns to investors in 35 months while not doing so in 26 months. Investors have seen the highest real return of 54.32% recorded in May 2006 among the financial investment instruments calculated since 1997.