Islamic Asya Katilim Bankasi AS has hosted its own “golden days,” when customers bring in coins and jewelry to be evaluated by experts. The Istanbul-based lender said it collected three metric tons of bullion through such promotions since March 2012 and that gold accounts have climbed 22 percent this year through July.

HSBC Holding Plc's Turkish unit is promoting a gold-based mutual fund on its website with the slogan, “Let the fund you touch turn to gold.”

While Indian banks offer some instruments linked to gold to discourage hoarding, the choices are not as varied as those in Turkey, according to Isbank's Aral. “Turkey seems to be trying the hardest to get the stashed gold into the system,” he said.

Government measures, including an Aug. 16 central bank decision to raise the proportion of reserves lenders can keep in gold to 30 percent from 25 percent, have encouraged efforts to attract more bullion, Aral said. Central bank Governor Erdem Basci has said he may make adjusting the ratio his main monetary policy tool.

Eoin Treacy's view It has been the Fullermoney view for a decade that gold was becoming remonetised in the eyes of investors. The trend of gold deposit accounts which actually pay a modest interest rate and against which one can gain credit is a further example of this process.

To date gold deposit accounts have appeared in countries with persistently high inflation which has made the allure of a hard asset all the more attractive. ICBC In China has offered gold deposit accounts for a number of years. Singapore is a clear exception to this trend. UOB offers a gold savings option which does not pay interest.

As a measure of investor interest in gold, ETF holdings act as a useful barometer. The measure continues to trend higher despite the recent softness in gold prices and suggests gold remains a vehicle for investors to express their dissatisfaction with the treatment of fiat currencies by central banks.


Eoin's personal portfolio: gold long initiated – Gold has retraced approximately half its advance, followings its breakout in late August, and has steadied in the region of $1700. An upward dynamic would bolster confidence, suggest short covering and signal a short and potentially medium-term low. Since that has not yet occurred, my aim in initiating a long position is to pre-empt such an event. I do this at the risk of being early and that gold could yet extend its recent decline before finding support at a lower level. I bought a December contract at $1713.60 including spread-bet dealing costs.