Mennica Skarbowa, Poland’s largest dealer of investment gold and other precious metals, closed 2024 with revenues of PLN 926 million. This is 31% more than in 2023. The company sold a total of 2.8 tonnes of gold in the period under review. It is worth noting that Mennica Skarbowa recorded a high level of sales of this bullion despite the lowest level of gold investment to be observed in Europe for 17 years. Currently, the Company is observing very high interest in investment products made of this bullion, which is undoubtedly related to the observed escalation of the armed conflict in the Middle East or the effects of the spreading customs war between various countries. In the opinion of the Company’s Management Board, the price of gold this year is likely to reach a record high of USD 3,500 per ounce as a result of increased demand for investments in safe assets. At the same time, following the introduction of cryptocurrency exchange services, the start of sales of diamonds and collectible products, the Company is planning further investments that will expand its portfolio and strengthen its position in the market.
In 2024, investment in Europe was at its lowest level in 17 years. According to the World Gold Council, net demand in Europe fell by almost half year-on-year (to just 66.6t) and was already at a relatively low level in 2023. At the same time, the high cost of living associated with inflation has meant a decline in the amount of spare funds available for investment, including bullion purchases. In addition, record high gold prices primarily encouraged the resale of stored bars and coins. These events led to a decline in the demand for gold, and consequently, a decrease in the revenues of entities engaged in the sale of the metal, especially when compared to the high sales levels of previous years.
– Despite significantly lower demand for gold across Europe, we managed to sell more gold bullion than we did last year. In total, we sold around 2.8 tonnes of gold. Poles were most eager to buy small investment products, which can then be easily resold around the world. Bullion coins were also very popular, especially those that are official means of payment. We are currently observing very high interest in our products, certainly higher than in the previous year. This situation is certainly influenced by the escalation of the armed conflict in the Middle East, the uncertainty about the attempt to end the war in Ukraine, but also by concerns about potential price increases caused by customs wars. Gold has always been popular in such uncertain times, as it is a long-term investment in a safe asset. Unfortunately, bullion products will not get any cheaper. We predict that this year the price of gold will reach a record level of USD 3,500 per ounce – comments Jarosław Żołędowski, President of the Management Board of Mennica Skarbowa.
In 2024, the Company generated PLN 8.9 million in profit on sales, and PLN 7.9 million in net profit. The gross margin on sales of goods and materials amounted to PLN 38.4 million in 2024 and increased compared to 2023, the percentage margin was 4.16% in 2024 and 2.91% in 2023, respectively.
In order to minimize the negative effects of declining demand in the market, the Company’s Management Board took steps to generate the highest possible sales, including by expanding the diamond offering in collaboration with Monte Carlo Diam, as well as enriching the product range with investment copper in partnership with Germania Mint and exclusive collectible products from well-known global brands such as the Royal Canadian Mint, Perth Mint, Disney, and Warner Bros. A breakthrough event was the launch of the innovative MS Trade service – the first network of exchange offices in Poland, enabling the purchase of gold, silver, and diamonds with cryptocurrencies. Thanks to the technological partnership with Ari10, Mennica Skarbowa, through the MS Trade company, launched an advanced platform for exchanging digital currencies for precious metals, gaining recognition among modern technology investors and the younger generation of customers.
The Company has also maintained a wide range of “off-the-shelf” products. The high direct availability of goods in fifteen branches and online, as well as now in the sales point in Częstochowa, represents a significant competitive advantage for the Company, as customers prefer this form of sales. The Company plans further investments and partnerships that will enable Mennica Skarbowa to expand its product and service portfolio.
