For several months now, we have been witnessing steadily rising prices and, consequently, increasing living costs. Rampant inflation is reaching levels not seen in decades. Forecasts indicate that the situation will not improve next year, and further price and interest rate increases are ahead of us. At the same time, as inflation continues to rise, our savings are melting away. How can this be prevented? By investing!
Capital protection - investments
Over the years, Poles have come to realize that it is best to invest their savings rather than keep them in the proverbial sock.
You can put them in a deposit account, but when interest rates are around 5-6% per annum and inflation remains at several percent, it is difficult to talk about any earnings.
The purchase of real estate has also been a popular form of investment for years. This includes both the purchase of apartments for rent and so-called "flips," i.e., properties in need of renovation at a lower price, which are sold at a profit after renovation. However, in addition to the advantages of high returns, there is also a significant disadvantage—a high entry threshold.
Investing in gold – Poles' way of dealing with inflation
Is it possible nowadays to identify an investment that has a relatively low entry threshold and at the same time brings a return? Of course it is. One such investment is buying gold – it is an excellent way to diversify your investment portfolio. You don't need a large sum to get started. A few hundred zlotys is enough to buy a one-gram gold bar. At the same time, gold prices remain on an upward trend in the long term, so you can ultimately count on a profit.
What do Poles choose?
The advantage of investing in gold is the possibility of constantly expanding the scale. All you need to do is buy another product from time to time – a bar or bullion coin – and thus expand your collection. Remember that in the case of investment purchases, it is the weight of the gold you own that is key, not the type of product, so it is easy to expand your investment portfolio through subsequent transactions.
Recent months have clearly shown that Poles mainly buy products with a lower weight, e.g., 1, 5, and 10 grams (although 100-gram bars were also popular). This trend has been noticeable since the outbreak of the war in Ukraine. Smaller weights make gold easier to transport and, if necessary, sell – not only within the country, but anywhere in the world. Buyers also often emphasize the option of exchanging smaller bars for goods.
The real gold rush
Low entry threshold, security, quick saleability, and the chance for future profits. These are just some of the advantages of investing in gold that Poles appreciate. The increase in interest in buying gold is reflected in the results achieved by Mennica Skarbowa between July and September.
In the third quarter alone, Mennica Skarbowa generated revenue of PLN 280.4 million. In 2021, sales for the same period were lower by PLN 55.9 million. In nominal terms, sales in the third quarter increased from 920 kg last year to 1.1 tons currently.
Looking more broadly at sales throughout 2022, we can already see that we are heading for another record. The Mint of Poland has already sold 3.5 tons of gold this year, which is almost 30% more than last year.
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