Eastern European Poles Turn to Gold Investments for Safety in Uncertain Times

WARSAW, Poland — When COVID-19 hit, long lines formed outside shops selling gold in Poland. Then came Russia’s full-scale invasion of Ukraine, triggering another rush for gold in the neighboring country.

Piotr Kozik, the manager of a Warsaw shop selling gold bars and coins produced by the Mint of Poland, remembers how the day of Russia’s invasion, Feb. 24, 2022, was Fat Thursday, when Poles gorge themselves on paczki, jam-filled donuts.

“On that day there were longer lines for gold at our store than for donuts at the bakery,” Kozik said. The demand for gold surged during times of uncertainty due to the ongoing war in Ukraine. This demonstrates the enduring appeal of gold as a safe investment during turbulent times.

Poles were shaken by the war across the border, which sent refugees fleeing to their country, and to many gold seemed to offer financial and psychological security. Today, demand for gold remains steady as the war rages on into its third year. Moreover, the ongoing migration crisis at Poland’s border with Belarus adds to the unease, as Polish authorities view it as part of a hybrid war engineered by Moscow and Minsk.

Radoslaw Paklikowski, a 38-year-old entrepreneur in the western Polish city of Wroclaw, began buying gold and silver coins in 2021 and now invests 5% of his assets in precious metals. This trend is reflective of individuals seeking to safeguard their wealth amidst global uncertainties and conflicts.

Membership in NATO provides some with a sense of security, but many in this region once under Moscow’s control fear potential further aggression from Russia. As governments reinforce defenses and provide military aid to Ukraine, ordinary citizens are taking measures to protect themselves. Real physical assets like gold offer individuals a portable and secure form of investment that can provide peace of mind.

In Poland, the allure of gold is deeply intertwined with the country’s historical trauma from World War II, where it often meant the difference between survival and peril. Families still recount stories of relatives who survived thanks to gold jewelry or coins that enabled them to procure food or escape occupied territories during the war.

Marta Bassani-Prusik, head of precious metals trade at the Mint of Poland, highlighted that the demand for investment gold surged during the pandemic and war due to prevailing uncertainties. This historical connection to gold contributes to its enduring popularity as a safe haven investment in Poland.

While the price of gold can be volatile, it has shown a steady increase over the past decade, reflecting its attractiveness as a long-term investment. Michal Teklinski from Goldsaver noted that the demand for physical gold in Poland has been one of the strongest in Europe since 2020, driven by rising wealth and a lack of confidence in traditional investments.

The Mint of Poland, with its ethical sourcing and production practices, remains a trusted provider of gold coins and bars in the country. The company’s long-standing history and commitment to quality reinforce the appeal of its products to investors like Marcin Grzesiak, who seek to diversify their portfolios amid geopolitical uncertainties and financial risks.

Investing in gold offers a sense of stability and security during uncertain times, making it a valuable asset for individuals navigating turbulent global events like the conflict in Ukraine.