Poland’s Rush for Gold Amidst Geopolitical Turmoil

by Yuki

As COVID-19 swept through Poland, queues formed outside gold shops. Then, Russia’s invasion of Ukraine on Feb. 24, 2022, catalyzed another surge in demand for the precious metal across the country.

Piotr Kozik, manager of a Warsaw store specializing in gold bars and coins from the Mint of Poland, vividly recalls the unprecedented scenes on that fateful day. “It was Fat Thursday, traditionally a day for indulging in paczki, but the lines for gold surpassed those at the local bakery,” Kozik remarked.

The invasion left many Poles deeply unsettled, with gold seen as a dual promise of financial security and peace of mind. While queues have since dissipated, the appetite for gold remains robust amidst ongoing conflict, compounded by a migration crisis at the Belarus border.

Radoslaw Paklikowski, an entrepreneur in Wroclaw, reflects this sentiment, having allocated 5% of his assets to gold and silver coins since 2021. “Owning physical gold isn’t about hoarding, but about having a safeguard in uncertain times,” he emphasized.

For many, NATO membership provides some reassurance, yet lingering historical anxieties persist in a region haunted by past occupations. Concerns mount that Russian ambitions in Ukraine could extend further.

In contrast to immobile assets like property, gold’s appeal lies in its portability. Marta Bassani-Prusik of the Mint of Poland notes a resurgence in interest tied to World War II memories, where gold often meant survival.

The pandemic initially drove demand, exacerbated by post-pandemic inflation. Despite its volatility and risks like theft or market fluctuations, gold’s allure endures, recently soaring from $1,300 to over $2,300 per Troy ounce.

Michal Teklinski of Goldsaver forecasts continued price hikes, driven by Asian demand and central bank acquisitions. Poland’s physical gold market, among Europe’s strongest post-2020, reflects a broader trend of wealth preservation and distrust in institutions.

Established in 1766 and now privately owned, the Mint of Poland ensures ethical sourcing from domestic mines, underscoring its role in a thriving market shaped by global uncertainties.

At the Mint’s Warsaw flagship, where historical echoes resonate amid modern skyscrapers, clients like Marcin Grzesiak invest amid geopolitical unease. “We’re in turbulent times,” he observed, after purchasing gold coins to diversify his holdings amidst geopolitical and cyber threats.

In Poland, as elsewhere, gold remains a tangible refuge in an increasingly unpredictable world.

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