Europe

Soaring interest in gold in the Czech Republic

Investment in precious metals has increased by about 50% this year and could increase further, but demand in Europe has outstripped the foundry’s ability to catch up, Zlatarezerva’s Roman Pilíšek told the newspaper.

Libor Brůna, head of the Golden Gate CZ, said demand for the first two months of the year was very similar to what was seen in 2021.

However, in March and April, interest in physical precious metals increased by 50-100%, Brůna told Hospodářskénoviny.

GoldenGate CZ achieved sales of CZK 2.4 billion in the first four months of this year, an increase of CZK 713 million over the same period last year, the company said.

Every day, Mr. Pilishek said that the reason for the growing interest in gold was related to what was happening in Ukraine. Investors are also responding to rising inflation, he said.

Hospodářskénoviny said financial market tensions could also be a factor. Investors and savers are transferring available money to safe shelters for precious metals, Brunat said.

Gold and other metals traditionally thrive with increased uncertainty. Historically, they are a safeguard against inflation and are considered a treasure trove of value during wars and famines, Trinity Bank Chief Economist Lucashkobanda told the newspaper.

But at this point, buying gold may not really pay off. Boris Tomčiak, an analyst at Finlord, said it was already too late because the worst inflation growth was already delayed. Gold is usually the most effective in the first phase of inflationary growth, he said.

Gold prices have risen about 8% in the last 12 months. This is somewhat below the current inflation rate, which reached 14.2% in the Czech Republic in April.

However, Czech gold investors can appreciate the depreciation of the Czech koruna’s US dollar for helping to evaluate their investment, Hospodářskénoviny said.

https://english.radio.cz/interest-gold-shoots-czech-republic-8750043 Soaring interest in gold in the Czech Republic

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