Why is it worth investing in gold?
Gold is becoming an increasingly popular form of capital investment. This is due to a number of factors related to events in financial markets.
Investment gold
The market turbulence, which is the result of currency crises or conservative decisions of central banks, is a direct cause of searching for alternative investment solutions. Exempt from VAT, gold is very often treated as a currency, not a raw material. Most importantly, however, unlike banknotes, it is impossible to print some more gold. What is more, its resources are limited.
Expert’s advice
Investment gold is an alloy containing a very high level of the precious element. According to the Goods and Services Tax Act, investment gold means gold in the form of bars or wafers of at least 995 purity. This means that the alloy must contain at least 99.5% of pure gold, whereas coins are made of at least 900 purity gold (90% of pure gold in the alloy).
Investment gold is exempt from VAT, so it can be treated as a currency, not a raw material. For this reason, more and more often it is considered as a form of capital investment, especially in times of uncertainty in financial markets. In response to the growing interest in this form of investment, the Mint of Poland started offering gold bars and gold bullion coins, both of domestic and foreign production.
When investing in gold on the Polish market, it is necessary to remember that the price of gold depends on two equally important factors. The first is the price of gold in London, the so-called LBMA Gold Price, which is announced twice a day every working day in the UK. The second factor is the US dollar exchange rate to Polish zloty.
Gold, unlike banknotes, cannot be printed upon request. At the same time, the global resources of this metal are limited, and the costs of exploitation of gold deposits are increasing. Moreover, in times of uncertainty in financial markets, many central banks decide to increase their gold reserves, what also makes the gold price go up.
However, not only issuing banks and large multinational corporations invest in gold, but also individual investors who believe that capital investment in gold allows them to protect their assets from turmoil in financial markets.
What is the price of one gramme of gold?
The price of gold is determined by the ICE Benchmark Administration (IBA), which since 20th March, 2015 has been the administrator for the LBMA Gold Price. Prices are set twice a day: the LBMA Gold Price AM (morning) and the LBMA Gold Price PM (afternoon). In Poland, the price of gold is determined according to the current price of gold and the current USD/PLN exchange rate.
Physical gold at the Mint of Poland
The Mint of Poland offers only investment gold in its physical form, i.e. bars and bullion coins.
Our customers can collect all gold bars and gold bullion coins, which have been purchased from the Mint of Poland, personally at the headquarters of the Mint of Poland in Warsaw, or have the poducts sent by courier to any address indicated. The items can also be deposited in the vault located at the Mint of Poland. Upon request of our customers, deposited items may be released or presented to them.
As the only company in Poland, we have our own gold refinery and we are not only the largest domestic gold manufacturer, but also the only mint producing gold bars in Poland.