Polish Mint: Gold sales hit a record 19 tons in 2022, ranking Poland 5th in Europe

Poland has set another record for gold sales in 2022, with customers buying a total of about 19 tons of gold bullion products, placing our country in the Top 5 in Europe in terms of sales volume, the Treasury Mint reported. According to the company, demand for gold in Poland will continue to remain high, and the price of the raw material as a result of political uncertainty in Europe, turmoil in the global banking market and continued high inflation will rise. The Treasury Mint sold nearly 5 tons of gold in 2022, compared to 4.53 tons in 2021.

"Poles are increasingly willing to buy investment gold products, treating it as a safe form of saving for years to come. Last year, Poland set another record for gold sales. We estimate that customers bought a total of about 19 tons of bullion products, which places our country in the Top 5 in Europe in terms of sales volume. Demand for gold is bound to grow in the medium term. The war in Ukraine, pervasive inflation around the world and the recent turmoil in the global banking market will reinforce this trend. For this reason, this industry is becoming increasingly competitive and more and more companies are trying to find a place in this segment of the economy, including well-known jewelry and also mining companies," Treasury Mint CEO Jaroslaw Zolędowski said.

"Therefore, the Treasury Mint will develop intensively this year. Ahead of us is the expansion of the stationary sales network, as well as investments in e-commerce and the promotion of our own brand. This will allow the company to respond to the increasing demand for gold among Poles. After all, I'm convinced that this year, too, Poland will break the record for sales of bullion products, and for the first time in history we will break the 20-ton barrier," He added.

The company is therefore planning dynamic growth as a result of, among other things, the expansion of its stationary sales network, as well as new investments related to e-commerce and promotion of its own brand.

Treasury Mint also reported that it closed 2022 with its highest-ever sales level, with revenues rising by more than 10% to PLN 1.22 billion compared to PLN 1.07 billion in 2021, operating profit rising to PLN 32.85 million from PLN 29.78.7 million, and net profit falling to PLN 21.5 million from PLN 21.7 million.

The year-on-year revenue growth recorded by the Treasury Mint was the result of several factors. The first was the global situation. The outbreak of war in Ukraine in early 2022 brought another surge of interest in gold, historically considered the most effective hedge of asset value in times of war, after the COVID 19 pandemic. Concerns about recession and rising inflation were also not insignificant, which always increases investor interest in putting capital into a stable and highly mobile investment like precious metals.

On the other hand, the tightening of monetary policy, radical interest rate hikes by central banks, the increased investment attractiveness of bank deposits and government bonds, and the rapidly strengthening dollar caused some investors to drift away, slowing demand growth.

The company indicated that an important factor allowing it to take advantage of the relatively favorable market situation was the company's expanding sales network. In March 2022, another stationary sales outlet was opened in Bydgoszcz, the 16th in Poland and also the first in the Kujawsko-Pomorskie Voivodeship. A second, related and important factor that contributed to the high sales performance was the wide range of products available "off-the-shelf" directly at the 16 branches, which was an important competitive advantage.

Source: Polish Mint and ISBnews