ISTANBUL, Jan. 24 (Xinhua) -- Gold production in Türkiye has experienced a decline in recent years, prompting experts to urge swift and effective measures to revitalize the sector.

According to data from the Gold Miners Association on Jan. 8, the annual gold output fell from 42 tons in 2020 to 32.2 tons by the end of 2024.

Resat Yilmaz, a gold industry professional and store owner in Istanbul's Grand Bazaar, said the areas where gold can be mined are becoming increasingly scarce in Türkiye, and finding sufficient gold veins -- narrow, mineral-rich deposits of gold embedded within rock formations -- to sustain production levels is becoming more expensive due to rising costs.

"For example, extracting one ton of gold no longer comes from a single vein. Multiple veins must be located, which not only requires greater effort but also more money, as it involves using additional chemicals," Yilmaz told Xinhua. He particularly mentioned the rising prices of acids and cyanide used in gold extraction.

According to Islam Memis, a specialist in gold and money markets, the decline in production is striking. "Foreign investors have also pulled out, leading to widespread job losses and economic hardship across the gold industry," Memis told Xinhua.

He noted that 50 percent of the goldsmith workshops in Istanbul's renowned Grand Bazaar and Kuyumcukent, two of the country's most significant gold market hubs, have shut down.

As domestic gold production struggled to meet the rising demand from Turkish consumers, imports surged by 400 percent over two years, prompting the government to introduce a quota system in 2023 to curb the growing current account deficit.

However, experts argue that the additional 20 percent financial burden on imported gold has further strained the industry, driving domestic gold prices even higher and local production increasingly uncompetitive.

The soaring gold prices and declining production also led to cultural repercussions, Memis said, noting that traditional practices such as gifting gold at weddings and engagements have become far less common.

"Gold has always been central to our customs, but over the past four years, these practices have declined significantly," he said. "The cost of a quarter coin has skyrocketed, turning it into a luxury item and making gold gifts at weddings increasingly rare."

As of Friday, a quarter gold coin reached 5,234 liras (146.7 U.S. dollars), up from 3,322 liras a year earlier.

Hasan Yucel, president of the Gold Miners Association, highlighted Türkiye's gold mining potential and the need to boost production in light of high gold prices.

Yucel stated that studies estimate Türkiye's total gold reserves range from 6,500 to 10,000 tons, a resource that remains underutilized due to the industry's reliance on small-scale production.

Speaking to Ekonomim, an online economic news portal, Yucel highlighted the challenges posed by complex permit processes, which deter potential investors. "Without addressing these barriers, investments may become unsustainable," he warned, calling for immediate measures to create a more investor-friendly environment. Enditem

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