Mennica Skarbowa recorded its best gold sales in over 12 months in May. In Poland, demand for gold investment products is rising, despite the fact that the price of bullion has remained high for more than three months, oscillating in the range of $2,300 to $2,400 per ounce. According to Mennica Skarbowa’s experts, the dynamic increase in the price of gold is mainly due to uncertainty in the financial markets – the FED’s monetary policy and the geopolitical situation – especially as a result of the war in Ukraine and the Middle East. Therefore, investors are increasingly focusing on safe assets that are easy to sell or exchange and to hedge their portfolios against possible economic turbulence. Demand for this bullion continues unabated despite the temporary slight decline in the gold price.
The price of gold has remained stable at a high level of over $2,300 per ounce for more than three months. In May, an ounce of gold reached its highest price ever – $2,454. The current price of precious bullion we are observing today is more than $400 per ounce higher compared to last year’s price. And although we are noticing a high price of precious bullion in comparison with the same period last year, there is no shortage of people willing to buy gold. The high price of this bullion reflects the strong demand for gold as a stable form of asset. This is also borne out by the May sales performance of Mennica Skarbowa, which last month recorded an increase in sales not seen in a year.
– As we summarize the first half of 2024 in May, Mennica Skarbowa achieved its highest level of gold sales in more than a year, which leads us to believe that the following months – both for the Company and the market as a whole – will be equally successful. The other months of the first half of the year, apart from January and February, were also very good sales months. This is mainly due to 2 factors: clearly rising bullion prices and the geopolitical situation in the world. We have observed clear declines in sales throughout Europe, but in Poland we are recording clearly greater investor interest in gold precisely at the time of higher valuation of bullion products. This is a recurrent situation. On the other hand, the continuing war in Ukraine and the Middle East, as well as increasing uncertainty about future economic and political solutions or decisions taken by, for example, the European Union and major countries, increase interest in investment products, which can be easily sold around the world or exchanged for other goods. This is one of the reasons why the most popular gold products are small-weight bars (1 ounce, 5-20 g) and coins, which are also official means of payment, e.g. the “Wiener Philharmoniker” or the Australian kangaroo. When analysing the situation on the gold markets, it is important to remember that all predictions are subject to a degree of uncertainty. However, observing the current situation, it can be expected that in the second half of 2024 we will witness the maintenance of a high gold price – comments Adam Stroniawski, Managing Director of Sales at Mennica Skarbowa.