In the first quarter of 2025, gold prices in Central and Eastern Europe rose by as much as 27% compared to the same period last year. Growing economic and geopolitical uncertainty and a strong upward trend in global markets have contributed to a marked rebound in demand for physical investment gold, including Poland. Mennica Skarbowa – the largest independent precious metals distributor in the country – recorded an approximately 50 % year-on-year increase in sales. The Company sold almost 700 kg of investment gold. According to the Company’s Management Board, this year Poles may break the record and buy more than 20 tons of products made of this bullion. The significance of our country is also recognized by the World Gold Council that is planning to accurately estimate gold sales in our country, just as it does in other major countries of the world.
High gold sales in Europe
According to the latest data provided by the World Gold Council, the Central and Eastern European region (the ‘other Europe’ category, which still includes Poland) recorded 7.3 tons of demand for gold bars and coins – up 27% on the first quarter of 2024. In Germany, interest in gold rose by as much as 59% and in Switzerland by more than four times. Coins and bars weighing less than one ounce are increasingly popular on the Old Continent – mainly due to high bullion prices and restrictions imposed on cash transactions.
„Gold prices, which have been rising over the past few months, and the increasing awareness of capital preservation among individual investors are driving demand. In the first quarter we sold almost 700 kg of gold bullion products and our sales recorded an increase of almost 50% compared to the same period last year. Despite the high price of gold and consecutive records of its valuation, Poles are very eager to buy bullion products, especially of small weight. They are easy to sell later around the world, just like some bullion coins. We continue to see a huge interest in gold, which is, of course, mainly the result of geopolitical turmoil on global markets and the armed conflicts that are still ongoing. We estimate that in the whole of 2025 Poles could buy more than 20 tons of gold, which would be an absolute record in our history. It is also worth noting that Poland’s role has also been recognized by the World Gold Council and it plans to accurately estimate sales of this bullion in our country similarly to other major markets”. – comments Jarosław Żołędowski, President of the Management Board of Mennica Skarbowa.
In the global market, China was the largest contributor to the growth in demand for gold bars and coins, with investments there reaching 124 tons (+12% y-o-y), accounting for 38% of global volume. India saw its seventh consecutive quarterly increase in demand – to 47 tons (+7% y-o-y). The opposite situation occurred in the United States, where investment in physical gold fell to its lowest level in almost five years, mainly due to a profit taking. The activity of central banks, which bought 244 tons of gold in the first quarter of 2025, is not insignificant. Although this is less than in the previous quarter, the level of purchases was still 24% above the five-year average. Central banks, like individual investors, are responding to the increase in global uncertainty that has elevated gold prices to record levels.
There is every indication that 2025 could prove to be a milestone year for the gold market in Poland – both in terms of prices and investment volumes. If Mennica Skarbowa’s forecasts are confirmed, demand will exceed previous records and will fit into the global trend of seeking safe havens for capital.
Solid financial results confirm the Company’s strong performance
The Company closed the first quarter of 2025 with revenues of PLN 270.3 million, an increase of 49.5% compared to the same period in 2024. Net profit amounted to PLN 2.2 million and profit on sales reached PLN 3.1 million (against PLN 0.8 million a year earlier). The gross margin on sales improved and reached 3.68%. The operating income of Mennica Skarbowa in the first quarter of 2025 amounted to PLN 2.9 million, an increase of more than three times compared to the same period last year (PLN 0.8 million). Gross profit stood at PLN 2.4 million. Financial income amounted to PLN 0.1 million, while financial expenses amounted to PLN 0.6 million. These were mainly related to exchange rate differences and the cost of loans used by the Company in its current trading activities. The Management Board of Mennica Skarbowa emphasizes that the Company regularly hedges both exchange rates and gold quotations without engaging in speculation. The majority of metal purchases are made in euros, making stable exchange rate risk management a key element of the Company’s financial strategy.
