Polish Investors Flock to Gold Amidst Geopolitical Uncertainty 🌍
When COVID-19 struck, Poles formed long lines outside gold shops, reports Vanessa Gera for the Associated Press (AP). The trend intensified with Russia’s invasion of Ukraine on 24 February 2022, creating another rush for gold, according to AP.
Piotr Kozik, manager at a Warsaw shop selling gold bars and coins from the Mint of Poland, recalls lines for gold surpassing those for Fat Thursday donuts, AP notes. Poles, shaken by the war and the influx of refugees, apparently have found gold to be a source of financial and psychological security.
The AP says that while the immediate rush has subsided, demand for gold remains steady as the war extends into its third year. The report adds that additional unease stems from a migration crisis at Poland’s Belarus border, viewed by Polish authorities as engineered by Russia and Belarus.
Polish Investors and Their Relationship with Gold 🌟
- Radoslaw Paklikowski, a 38-year-old entrepreneur from Wroclaw, started buying gold and silver coins in 2021.
- Now investing 5% of his assets in precious metals.
- Emphasizes the importance of having physical gold for safety in crises.
The AP report goes on to say that gold’s appeal in Poland is deeply rooted in the trauma of World War II, where it played a crucial role in survival. Families recall stories of ancestors who used gold jewelry or coins to buy food or cross borders during German and Soviet occupations, according to AP.
Marta Bassani-Prusik, head of precious metals trade at the Mint of Poland, notes that clients include Poles with such family histories and people with Polish roots revisiting their heritage. She observes that the market for gold investment surged with the pandemic and the war.
Gold Market Performance and Forecast 💰
- As the second quarter concludes, gold has set a new all-time record quarterly closing price.
- Finishing the week at approximately $2,336 per ounce.
- Representing a more than 5% increase from the end of the first quarter.
Kitco’s analysis reveals an even more impressive annual performance, with gold prices soaring by a staggering 21% compared to the end of the second quarter of 2023. Many analysts remain highly optimistic about gold’s prospects, citing solid fundamental macroeconomic support and an uptrend visible in the long-term chart.
While there is a possibility of near-term price declines, it’s challenging to envision a significant shift in the current trend. However, despite strong long-term fundamentals, the market currently lacks a catalyst to propel gold to new all-time highs.
Investor Sentiment and Allocation to Gold 📈
- State Street Global Advisors’ Gold Perceptions Survey reveals:
- 29% of North American professional investors expect to increase their allocation to gold.
- Nearly 85% of advisors surveyed reported having some allocation in the precious metal.
Regarding potential catalysts for gold, Michael Widmer, a commodity analyst at Bank of America, recently increased his gold price forecast, envisioning gold reaching $3,000 an ounce in the next 12 to 18 months. Investors are likely to enter the gold market once they receive clear signals from the Federal Reserve about a new easing cycle.
Hot Take: Gold Shines Bright in Polish and Global Markets 🚀
Polish investors turning to gold amidst geopolitical uncertainty reflects a broader trend of seeking financial security in precious metals. As the global gold market hits new highs and investors express strong optimism, the future of gold as a safe-haven asset seems promising. With gold prices on the rise and investor sentiment leaning towards gold, the precious metal continues to captivate the attention of markets worldwide.
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