Gold – a solution to inflation

Inflation is constantly rising, and with it, concerns about the future. We wonder how further increases will affect prices on store shelves, but also how they will translate into our savings. More and more people, wanting to preserve the purchasing power of their money, are looking for alternative ways to invest it. One way to combat inflation is to invest in precious metals. Many of us are familiar with the famous saying "gold rush." It's safe to say that it has also taken hold in Poland.

Maintaining the value of money

Investing accumulated capital is a very good idea for the future. On the one hand, it allows us to preserve the value of money and protect our funds against inflation, and on the other hand, it gives us the opportunity to make a profit. Thus, investments give us a sense of freedom and security, for example, for retirement. Buying gold can give us this sense of security.

Diversification of the investment portfolio

It is important to be aware that every investment carries a certain amount of risk – greater or lesser depending on the asset selected. Therefore, it is recommended to diversify your investment portfolio, i.e., to keep your capital in various financial instruments. Dividing your investments into several areas allows you to reduce the risk associated with the investment and protect yourself against capital loss, but also gives you the opportunity to maximize your profits.

Portfolio diversification can be based on industries, regions, or investment duration. We also distinguish diversification by market type, and here, alongside stocks and investment funds, we can mention investment gold—one of the safest investments, which over the years brings considerable profits and effectively helps combat inflation.

Advantages of investing in gold

Everyone, especially novice investors, should know that a good investment is not only about accumulated capital, but above all about the right strategy and patience. The same applies to gold – we do not focus on quick profits, but on long-term gains that ensure a secure future. Gold is definitely a long-term investment. Its price can be volatile, but in the long run, it gains in value.

History has shown time and again that gold is an investment that allows you to survive difficult economic situations and provides protection against economic crises. It is a currency recognized in virtually every corner of the world, which ensures the liquidity of investments.

It is also important to remember that you do not need to have a large amount of capital to start investing in gold. You can start by buying small gold bars, which currently start at around PLN 320 per gram. For novice investors, it is even recommended to buy several smaller bars rather than, for example, a 100-gram bar right away. A lower weight makes it easier to sell, and thus exit the investment.

The popularity of gold

We have witnessed growing interest in gold over recent years. Data from global mints show that Poles are among the leading European countries when it comes to purchasing this precious metal. Our purchasing decisions are influenced by factors such as inflation.

The results of the Mint of Poland for 2021 perfectly illustrate the Polish gold rush. It was a record year for us – for the first time in history, revenues exceeded PLN 1 billion! We sold over twice as much gold as in 2020, reaching a level of 4.5 tons.

For investors, bullion coins are a key commodity alongside bars. Among the most popular last year were the Canadian Maple Leaf, Australian Kangaroo, and Krugerrand, which saw sales growth of 89%, 95%, and 117%, respectively, compared to 2020. However, the Vienna Philharmonic coin enjoyed the greatest increase in interest, with sales rising by 223%.