In the face of global economic turmoil, geopolitical tensions and war conflicts, gold is once again returning to favors as a safe investment haven, as evidenced by the huge demand recorded by Mennica Skarbowa. In February this year, the company recorded its best sales of bullion investment products in more than two years. As a result, queues are beginning to form at many branches of Mennica Skarbowa, with some global bar manufacturers, unable to keep up with deliveries to Poland, reporting possible delays.
Over the past few weeks, the price of gold has risen continuously. According to various assessments, this is due to global uncertainty and geopolitical tensions. Rising inflation, unstable financial markets and, above all, trade wars and armed conflicts are all contributing to the increased interest in this commodity.
— We are observing a huge interest in gold, especially in small weights. We had a record month in February – the best in two years. Today I am receiving reports that queues are bigger than usual in some of our branches. Gold simply likes crises. And it’s not just the bumps on the world stock markets, but the whole geopolitical jigsaw puzzle: escalating tensions in the Middle East, the war in Ukraine and, above all, increasingly fierce trade wars. In such an environment, predictions of a price of USD 3,500 per ounce in the coming months no longer sound abstract — comments Adam Stroniawski, Managing Director of Sales at Mennica Skarbowa.
The growing interest in gold is not limited to individual investors. Demand is also being stimulated by central banks, which have started to increase their own reserves in recent months. According to the World Gold Council, it is the public sector – especially in developing countries – that is now one of the main drivers of demand.
The National Bank of Poland has also set its sights on gold. According to the latest available information, Poland holds a total of around 500 tons of gold, which represents more than 20% of the country’s total foreign exchange reserves.
— Central bank purchases, as well as the huge demand we are currently witnessing, are causing some of the world’s gold bar manufacturers to report delays in orders to Poland. Usually our company fulfils most orders within 24 hours, now some of our customers making particularly large purchases have to wait several days for delivery. It is worth bearing in mind that gold is a raw material with limited reserves. According to data released by the World Gold Council, total global reserves stand at around 190,000 tons, much of which has already been mined and is in circulation. Increased purchases by both individual investors and central banks may therefore affect the limited availability of this bullion — adds Adam Stroniawski.
In Poland, investors most often go for bullion coins that are well-established and easily marketable. The most popular are the Vienna Filharmonics (Austria), the Canadian Maple Leaf (Canada), the Australian Kangaroo (Australia), the American Eagle (USA) and the Krugerrand from South Africa. All of these coins are official legal tender in the countries of issue, although their face value is symbolic and unrelated to current market value. This makes these coins highly trusted and easily recognizable around the world. Poles are also keen to buy small-weight gold products, such as 1-ounce gold bars, which are then easy to sell or barter for goods.
In 2024, Mennica Skarbowa sold 2.8 tons of gold and recorded revenues 31% higher than in 2023.
