CONSUMPTION OF GOLD AND JEWELLERY IN TURKEY

QUESTION

Consumption of gold and gold jewellery in Turkey.

O Sandikci& B Ertimur

[This case study is taken from Solomon et al (2006) Consumer Behaviour – a European Perspective. 3^rdedn. Prentice Hall, Harlow, UK.  Pp 476-477]

Turkish consumers love gold and gold jewellery. While Turkey is not a major gold-producing country, it constitutes one of the world’s biggest gold consuming markets, ranked fifth in world demand. It is also the second biggest exporter of gold jewellery products after Italy. Gold jewellery is one of the fastest growing sectors in Turkey, with around 35,000 jeweller’s shops scattered all over the country.

An important distinction must be made between consumption and investment demand for gold. Typically gold bars and coins are treated as an investment and jewellery as consumption items. However, the term jewellery refers to a wide range of products with different characteristics. In Western developed markets, gold jewellery is usually low carat and bought primarily for adornment purposes. In Asia and the Middle East, on the other hand, most gold jewellery is high carat, which can easily be converted back to raw gold. Thus, gold jewellery functions both as adornment and saving tools.

There are three forms of gold products in Turkey: gold bars, coins and jewellery. Gold bars are traded on the Istanbul Gold Exchange and used solely for investment. Gold coins and jewellery, however, serve multiple purposes. Gold coins, which are termed ‘Republican coins’ are available in five different sizes. Gold jewellery, on the other hand, comes in 14, 18 or 22-carat forms. The 14 and 18 carat items of jewellery are usually modern designs while the 22 carat jewellery is more highly valued for investment purposes. The gold jewellery includes plain bracelets – ray bilezik– which are among the most frequently purchased items for saving purposes. Most of the traditional designs, such as Trabzon and Tel Kare, are also 22 carat.

Turkish people use gold coins and jewellery for three different purposes: ornamentation, gift-giving and investment.

Gold jewellery adorns the bodies of many Turkish consumers. Factors such as design, size, carats and accompanying stones determine whether the jewellery is appropriate for day or night wear. Typically, smaller and simpler designs are preferred for daily use whereas large items of gold jewellery with precious stones are worn at night and on special occasions. Moreover, women try to match the gold jewellery to the clothes they are wearing in order to convey a particular desired self-image. Some women state that they purchase new gold jewellery when they realise that they don’t possess a design that suits a particular dress. For many, gold jewellery connotes ostentation, and they believe that women wear gold jewellery for social occasions in order to show off and impress others.

Although gold coins are typically purchased for investment purposes, they might be used for self-ornamentation as well. The most common example of this is besibiryerde – a special type of necklace made out of coins. Since these necklaces are 22 carats of gold, they can easily be converted into money without any loss of value. Wearing these necklaces, however, seems to be a dying tradition, confined mostly to village women.

Gold jewellery and gold coins are also given as gifts on various occasions. In Turkey, it is customary to give gold jewellery or coins as gifts to women getting engaged or married, to newborn babies, and to boys who are being circumcised. In these contexts, the gift operates as an artefact marking the role transition and signifies the strength of the bond among family members and close friends. Gold can also be an appropriate gift item for celebrating occupational events such as retirement or promotion and personally symbolic days such as birthdays or wedding anniversaries. The choice between an item of jewellery and coins as a gift depends on three factors: the existence of a traditionally appropriate gift item for a particular occasion, the intimacy of the relationship, and the taste of the giver and receiver. For example, if the gift is for a newborn baby, then it is always a gold coin. The decision, in this case, is about the size of the coin and ultimately depends on the intimacy of the relationship. Typically, the closer the relationship is, the bigger the size of the gold coin. However, when there is no clear norm about the type of gold gift, the selection is guided by a combination of factors. For example, when the gift is to be given to a woman getting married, gold jewellery is preferred if the relationship is close and the giver is knowledgeable about the taste of the recipient. If, however, the taste of the recipient is not known, gold coins, which are standard and non-personalised items, are given.

Both gold jewellery and coins can be purchased for investment purposes. Although gold offers no rate of return or dividend apart from the potential capital gain that may result if its market price rises, its high value and easy portability renders it a prominent saving tool. Jewellery items with less craftsmanship, such as plain bracelets, are preferred as they preserve their value better and can be more easily converted into money in times of need. Consumers from lower socio-economic classes especially prefer plain designs so that they do not pay for the craftsmanship. Consumers from the higher income groups, on the other hand, tend to select crafted models, but they prefer items that do not contain stones. However, even when gold jewellery is purchased for investment reasons, aesthetic concerns are present. These items of gold jewellery are still used for adorning the body and worn by the owner in her daily life.

Gold coins also function as an investment tool, an alternative to foreign currency or deposit accounts. Especially in rural areas where access to a bank is limited, collecting gold coins is an attractive option. They can be stored at home, and during times of personal financial difficulty or political or economic turmoil they can easily be converted into cash. The practice of purchasing gold coins is also common in the cities. Many urban housewives engage in a social activity referred to as ‘gold days’. Every two or four weeks, women meet at the house of one of the participants to drink afternoon tea and chat. Every time they meet, each brings a gold coin or money equivalent to a fraction of it. At the end of the day, the host gathers all the gold coins and money. Typically, drawing a name determines who will be the next host, and eventually all women have their turn to collect gold coins. The benefit of gold days is that they help women to save little amounts of money, and then receive a lump sum amount which they can either continue to save or spend for other needs.

• You need to show that you understand the relevant theoretical concepts relevant to each answer and apply to the illustrative material contained in the case study (maybe in quotes).
• Your answer needs to be more than common sense!
• Incorporate relevant theoretical concepts (e.g. reference groups, self-concept, etc)
• Include references in your answer (you do not need to write a reference list)
• Refer back to the case to illustrate what you mean.

1. What types of rituals is consumption of gold jewellery and coins a part of? [10]

1. What kind of utilitarian and symbolic motives might underlie the practice of giving gold jewellery and coins as gifts? [15]

1. How might social class affect jewellery consumption? [10]

1. What kinds of messages do personal adornments communicate about self-identity? [15]

SOLUTION

1. What types of rituals is consumption of gold jewellery and coins a part of

As per Farndon gold is one customary part for the living people in the world. Turkish people tradition is consuming gold jewelleries and coins for investments and for ceremonies like wedding anniversary and sometimes they give gold coins as a gift in retirement events like great personality retire from their work at the age of sixty. During the tenure he have been played good role for the organisation. In order to congratulate same colleague will present him gold coin for the memory. In particularly marriage occasions old people will give huge gold for bride as a dowry and for the prosperity of life. People will give jewellery and coins as a gift for the closer relationship because they signify the relationship get closer and the bond among their family members and close friends for end of life. Sometimes gold jewellery and gold coins are consumed for the purpose of celebrating the occupational events like promotion and personally for the purpose of birthdays. While giving gift to friends or any other relations in any occasions the gold coin size differs and it depends up on the relative the relationship is bigger the size of cold is much bigger with distance relations.  Gold is one of the precious metal and also very costly have more value among the metals.tha gold can be easily converted into cash when there is demand for money. Gold offers no return of the rate or sometimes dividend apart so it can be easily portable to cash when needed at the time of high prices in market. Gold is very precious for all the class of people across the culture and times. Even the business people use to invest in the gold for their increased value and for the safe and secure investment. People will present the gold coin for the new born baby who shows their love and affection.

1. How might social class affect jewellery consumption

As per prior jewelry consumption in turkey arises for various reasons such as investments, savings and for ceremonies like wedding; birthday’s other event such as retirement, promotions. They have a tradition like giving a gold jewelry and gold coin as a gift in several occasions and events. But the gifts will vary based upon the class of people. Middle classes of people need not pay for the craftsmanship works for the jewelry because they prefer only plain designs of ornaments. And it also very cheap. Because based upon the situation and the income they have preferred the quality and design. While higher category people prefer craftsmanship jewelries. High class people will be good in healthy condition in finance. So obviously they will prefer for the 24carat gold. So that they use to get purest form of gold. Social class people get affects in gold jewelry and cold coin savings due to high value in market prices and it is difficult for them to manage their position at the time of financial difficult. Jewelries which contain with gold and silver wires work and stone contain it are difficult for the lower class to consume this type of jewelries so they get affects with higher value of ornaments. For occasions like marriage turkey have the tradition to gift a gold jewelry or gold coins and size must differ according to the relationship, if they are in very close relationship they will offer huge sum of gold’s. In this Turkish rituals lower socio-economic classes of people get affects due to absence of consuming gold jewelry and big size cold coins and gold coins in case of new born babies occasions. Where market price value increases, lower classes suffer in consumption of jewelries but they prefer only the ornaments contain plain designs without any craftsmanship work and hard stone so there is no other way for the people to consume too much of jewelries and it mainly affects the lower class of people. The people in social class they want to attract other class people by wearing the jewels with the great design and they are very dynamic in nature.

1. What kind of utilitarian and symbolic motives might underlie the practice of giving gold jewellery and coins as gifts

According to Scott presenting the gifts in terms of gold jewelries is great outcome of the affection towards the person whom you like very much. The practice of giving the ornaments is the old traditional method but it also serves as the best method… It focuses the relationship between the people. During the occasion of marriage or some other function gifts will presented in the form costly jewels it shows the respect towards the person. Normally the women from the age of twenty till thirty responded to gold in a high level. And adult won’t have that much impact on gold. And the age above forty they will have craze but not to greater extent. Offering the gift will helps to make the relationship stronger in the life. Middle class people they offer according to the standard likewise it varies from social culture age and lifestyle. People will have more attraction towards the gold ornaments from older days till now. It is been increased day by day and at the same time the price is also been increased to the high level. Now the gold demand is more all over the world. By giving the gold gifts to other person will increase the bondage relationship. Because gold is the symbol of love and power and it also express the happiness towards the particular person whom you like. It is also the religious in nature of giving the gold jeweler gifts. Even though the religion varies among fro m one another but the value of gold remain constant in the value. THe motive of presenting the gold coins or jeweler during the function time which will express the prosperity in life. This is one of the greatest gifts in the world that you can receive and you can give it towards the other person whom you love lot in the world. Presenting the gold gifts which will help them in the future when they are in crisis situations and they also can convert into money for their demands.

1. What kinds of messages do personal adornments communicate about self-identity

As per Khosla gold is the one of ornamental metal which has more power of attraction towards all the religion of people which is more significant for the all the class of people. Because women has more attraction towards the gold than men and children. Women are using gold as self identity in the society. The gold jeweler is a powerful status for women. Normally people would think that gold symbolizes the wealth. By wearing the huge jewels in the ceremony will explores the family wealth and paternal status for women. In some cases women would feel that wearing huge gold at the time of marriage will bring luck into the family as well as the happiness will spread out in the family throughout the life time. In order to show the status of family women use to wear the gold ornaments during the festival time like Christmas ramzan and durga pooja. This will considered as the religious part of the culture and it also represents the quality towards the god. Women and gold have stayed more near to each other. Children don’t have that much interest with the gold. And the same scenario for men also they don’t wear that much but they use to invest in gold. So that it have a good market. It will increase to decent value based upon the market economy. And the profit will be doubled in the future .Some of the people have the intention that they want to start business by purchasing the gold at very first level. They had belief that the business moves in the positive direction with the great success. People prefer gold for their status, wealth and the beauty. Gold will adds the value to the physical appearance and it will lighten your face with the charm. It has more power among all other metals… Gold is very soft in nature so people use to prefer gold and also with huge designs. Now day’s people giving much importance in their life even though it was greater demand in price.

References:

Khosla, Swati (2010). “Consumer psychology: The essence of Marketing”

J. Scott Armstrong (1991). “Prediction of Consumer Behavior by Experts and Novices”

Prior, Katherine (2000). Traditional Jewelry of India. New York:

Scarisbrick, Diana. Rings: Symbols of Wealth, Power, and Affection. New York: Abrams, 1993.

Farndon, J. 2001. 1,000 Facts on Modern History. Miles Kelly Publishing

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