Enab Baladi – Hani Karazi

Syrian gold shops have secured a place among the jewelers in Istanbul, managing to become competitors in the Turkish market; however, this profession has faced some challenges affecting its owners amid the economic inflation that Turkey is experiencing.

For decades, Syrians have been known for their professionalism in several traditional industries, including gold crafting, as the old gold markets in Syria have long been bustling with traders from the Gulf region and others who flock to them, drawn by the refined taste of Syrian jewelers.

Following the onset of the war, many jewelers relocated their businesses outside Syria, just as many other professions did, due to security issues, chaos, and the collapse of the Syrian pound. Some decided to establish new ventures in Turkey.

Istanbul became the primary destination for Syrian jewelers as it is the economic hub of Turkey. Some opened their own workshops for manufacturing gold and selling it to shops, while others opted to purchase gold from those workshops and sell it directly to customers, profiting from the craftsmanship fees and the rising gold prices.

Demand from Turks

The gold sold by Syrians in Turkey differs from Turkish gold, as Syrian jewelers offer 18 and 21-carat gold, whereas Turkish jewelers provide gold in 14 and 22-carat varieties. The two types also differ in color, with Syrian gold having a slight reddish tint, while Turkish gold is lighter in color.

Ahmad al-Shami, a gold shop owner in the Yenibosna area of Istanbul, stated that there is a growing interest among some Turks in purchasing gold from Syrian shops, which he attributes to two main reasons.

Firstly, the craftsmanship fees for gold (the cost of manufacturing the piece) at Syrian shops are lower than those at Turkish ones. The latter charges between 1000 and 1500 Turkish lira per gram, while the Syrian jeweler charges 300 lira for the same. Additionally, most Syrian jewelers offer a modest discount for customers after calculating the total cost of the gold piece.

A simple calculation shows that if a person wishes to buy a gold piece weighing 15 grams, they would pay an average manufacturing fee of about 20,000 lira at a Turkish jeweler, while the fee at the Syrian shop would be around 4500 lira (1 USD equals approximately 34.3 Turkish lira).

The manufacturing fees vary from one shop to another, even among Syrians, depending on the type and weight of the gold piece, its model rarity, the time needed for its completion, and the shop’s location and size. The higher the rent and larger the space, the more costly it becomes for the jeweler, necessitating an increase in manufacturing prices.

The second reason for Turks’ preference for Syrian shops, as mentioned by al-Shami to Enab Baladi, is that Turkish shops only sell 14 and 22-carat gold. If a customer wants to purchase a 22-carat gold piece, the price per gram is about 5% higher than that of Syrian gold (21-carat).

If a customer wants to buy 14-carat gold from a Turkish shop, the pieces usually have many ornamental stones added to the gold weight, which means the customer incurs a loss when they decide to sell it since the jeweler removes those stones before weighing the piece.

Al-Shami indicated that Syrian customers in Turkey always prefer to buy Syrian gold, primarily because if they might return to their country one day, they could sell or exchange it there, while they might not find anyone in Syria to buy Turkish gold (22-carat).

The price of 21-carat gold in Turkey is 2655 Turkish lira, and 18-carat is 2257 lira, while the price for a gram of 22-carat Turkish gold is approximately 2780 lira.

Examples of Syrian gold in a jewelry shop in Ümraniye, Istanbul – October 19, 2024 (Enab Baladi)

Syrian gold workshops

In the heart of Istanbul, there is a complex in the Yenibosna area that houses hundreds of gold shops and workshops, making this market one of the prominent commercial spots for jewelry, where gold is displayed and sold in various shapes and sizes, with high quality and reasonable prices compared to other gold shops in Istanbul.

Jeweler Ahmad al-Shami, who owns a shop in the Yenibosna complex, told Enab Baladi that Syrian gold manufacturing in Turkey has developed over the past few years. Six years ago, there were about seven Syrian workshops for gold manufacturing in the Yenibosna complex, whereas today, there are around 50 Syrian workshops within the complex.

Al-Shami attributed the increase in the number of Syrian workshops to the rising demand for Syrian gold from both Syrians and Turks, as well as the advancement of gold manufacturing techniques with the introduction of modern machines, whereas previously, gold design relied on handcrafting pieces via wax, which would ultimately be formed into a mold.

Today, gold design is done using the Matrix program, which helps create jewelry models using 3D drawings. After choosing the suitable design, the jeweler prints it using a wax machine and then extracts the model.

Al-Shami pointed out that manufacturing a model now takes about a day, whereas it used to take about a week when done manually, and it required extensive expertise.

Challenges burdening jewelers

Syrian jewelers in Istanbul face several challenges, similar to other jewelers in Turkey. Economic inflation and fluctuations in the value of the Turkish lira have led to increased taxes and high rents for shops and workshops, negatively impacting their business.

The annual inflation rate in Turkey reached 49.38% last September, after hitting 52% in August 2024, while the exchange rate of the Turkish lira against the dollar was recorded at 34.33 according to the Doviz website.

Sobhi Bakir, a Syrian jewelry shop owner in the Ümraniye district of Istanbul, stated that the biggest challenge jewelers face is the high price of gold in Turkey compared to other countries, due to the economic inflation that Turkey has experienced.

Bakir added in an interview with Enab Baladi that five years ago, jewelers were paying about $300 more per kilogram compared to the price of gold in other countries. Now, the jeweler pays an extra $3,700 to $4,000 for each kilogram of gold, indicating that this burdens jewelers, especially new ones.

During a tour by Enab Baladi of several Syrian gold shops in Istanbul, it became apparent that many of them had little gold displayed in their stores.

When inquiring about the reason, Bakir explained that this is due to taxes; the larger the quantity of gold displayed, the higher the taxes become. “Therefore, we have to buy small amounts of gold to alleviate the burden of taxes that have weighed us down,” he noted, adding that the decrease in the amount of jewelry displayed contributes to reduced sales because customers have limited options.

Bakir also mentioned that the Turkish state sometimes eases taxation to attract investments, but two months ago, there was a broad crackdown on shops to monitor buying and selling and tax evasion. This situation requires jewelers to focus on organizing their accounts and paperwork for submission to the Turkish Revenue Administration, in addition to the tax costs they incur, not to mention the penalties they may face.

Gold prices are subject to fluctuations between increases and decreases, affecting buying and selling activities. Jeweler Ahmed al-Shami believes that the high gold prices boost sales activity, while a sudden drop in price leads to market stagnation.

Al-Shami justified this by explaining that it is related to customer psychology; when the price suddenly drops, people refrain from buying because they expect further declines. Conversely, when gold prices rise, customers rush to purchase out of fear of further increases, adding, “The best scenario for us is a stable gold price.”

Additionally, incidents of theft and fraud remain security concerns for jewelers. Istanbul has witnessed several theft cases targeting some Syrian jewelers, some of which have ended in the death of the jeweler.

Last September, Syrian jeweler Mohammed Moushama was killed by armed thieves in the Sultan Ghazi district of Istanbul after he attempted to prevent them from stealing a bag containing a kilogram of gold while heading home.

Gold shops at the Istanbul Jewelry Exhibition – October 4, 2024 (Enab Baladi)

Syrian presence at the Istanbul Jewelry Exhibition

Istanbul hosts an annual jewelry fair featuring jewelers from various countries worldwide. From last October 2 to 5, the 56th Istanbul Jewelry Exhibition was held at the Istanbul Exhibition Center.

According to the Turkish Anadolu Agency, around 1,000 brands and companies from 14 different countries, including Turkey, participated in the Istanbul Jewelry Exhibition, one of the top five jewelry fairs globally.

About 20,831 buyers from 134 countries attended the jewelry exhibition in Istanbul, which showcased a wide range of products for visitors, including gold, diamond, emerald, silver, and pearl jewelry.

Anadolu Agency reported that the percentage of foreign buyers at the exhibition was 34%, and alongside the jewelry, there were dedicated sections for showcasing the latest tools, equipment, and technologies in jewelry manufacturing, along with molds, boxes, security equipment, software, display accessories, and packaging products.

Enab Baladi conducted a tour of the exhibition, where it was notable that many Syrian jewelry shops participated.

Ahmed Sabouni, a jewelry shop owner in the Sultanbeyli area of Istanbul, expressed that participating in the exhibition was very important to introduce various customers, especially Turks, to Syrian products, encouraging them to purchase Syrian gold, which has become a competitor to Turkish gold.

Sabouni (55 years old) added to Enab Baladi that his participation in the exhibition served a marketing purpose on one hand and a desire to explore and learn about the latest gold manufacturing technologies on the other, as foreign companies showcased advanced machines and technologies that could facilitate gold production, thereby saving time and effort.