Goldsmiths Close in Istanbul's Grand Bazaar as Spice Vendors and Gift Shops Move In

As goldsmith shops in Istanbul's Grand Bazaar close one by one, vacated spaces are being filled by spice merchants, gift shops, and tourist-oriented businesses. According to a report by Sözcü based on press freedom sources, Ercan Özboyacı, head of the Istanbul Chamber of Commerce Jewelry Profession Committee, confirmed that sales have declined significantly and the number of closed shops is rising.

Sharp gold price declines are hitting the sector directly. On international markets, spot gold reached an all-time high of $5,595 on January 29, but fell to $4,001 as of October 27, losing 28.5 percent of its value. Gram gold declined from 7,816 lira to 6,403 lira over the same period, falling 18.1 percent.

International markets are also under pressure. Mustafa Özcan, head of the Jewelry Exporters Association, noted that the kilogram gold price gap between Turkey and the international market has narrowed from $1,500 to $300, weakening the exporter's competitive advantage.

According to Turkish Exporters Council (TİM) data, jewelry exports in January-September 2024 reached $6.86 billion with a 10.8 percent increase; however, this growth appears to stem primarily from crude bullion exports rather than higher-value processed jewelry.

On the domestic market, high-yield alternative investment instruments are drawing consumers away from gold, while goldsmiths—operating under high capital requirements and labor-intensive craftsmanship—feel the greatest pressure. The transformation of the bazaar's century-old gold and precious stone identity raises concerns about the future of traditional crafts.