Prague, Czech Republic – With the Czech Republic grappling with persistent double-digit inflation rates, it comes as no surprise that a significant number of Czechs are seeking refuge in gold as a means to protect and invest their wealth. A recent survey conducted by the STEM/MARK agency for the Czech Mint has shed light on the population’s perception of precious metals, with nearly three-fifths of respondents considering gold an investment tool that safeguards against inflation.

According to the survey, gold is the preferred precious metal for investment, mentioned by almost 60 percent of participants. In comparison, five percent would choose silver and six percent would opt for platinum, while a third remained undecided. The findings indicate a strong belief in the enduring value and stability of gold as an asset.

Interestingly, the survey revealed that ten percent of Czechs possess a gold bar at home, while the majority own gold investment coins. The gold coin was particularly associated with investment, with one in six respondents having purchased one primarily with the intention of making a profit.

Of those surveyed, 56 percent expressed a preference for personally managing their investments in gold and other precious metals. Meanwhile, one-fifth sought recommendations from bankers or financial advisors, and 16 percent relied on advice from friends or family. A small fraction of respondents, four in a hundred, were influenced by advertisements in their decision to invest in gold.

The motivations behind purchasing gold varied among respondents. In recent years, the primary drivers for buying gold coins have been investment purposes and protection against inflation. However, a quarter of buyers are collectors, recognizing the numismatic value of gold bars, coins, or medals. The Czech Lion coin has emerged as a particularly popular choice among first-time buyers. On the other hand, individuals who prioritize appreciation of their investment tend to acquire gold bars and coins with significant collector potential, surpassing the value of the underlying metal.

When it comes to purchasing gold, Czechs exhibit a preference for brick-and-mortar stores, with 40 percent of respondents indicating this as their preferred method. Online purchases accounted for 20 percent, while 25 percent of participants expressed no specific preference.

The survey also highlighted a prevailing sense of safety associated with investing in gold and other precious metals, with more than three-quarters of respondents perceiving it as a secure option. As for the amount invested, nearly half of the participants had up to 50,000 Czech crowns allocated to precious metals, one-third had up to 150,000 crowns, and one-tenth had investments exceeding half a million crowns.

As inflationary pressures persist in the Czech Republic, the survey findings underscore the growing appeal of gold as a means of preserving and growing wealth. Czechs’ increasing inclination toward gold investments serves as a testament to their proactive approach in safeguarding their financial futures amidst an uncertain economic climate.

Article by Prague Forum