Interest in gold breaks records

The Czech Mint – it's not just coins. We are an authorized distributor of Argor-Heraeus gold bars and we also offer a wide range of other investment products.

Why should you invest in gold, you ask? We have some up-to-date numbers that are worth a thousand words: Since 2000, the price of gold has risen by more than 1000%. The average annual return has thus exceeded a fabulous 10% and the yellow metal has outperformed the stock markets.

Although the global demand for gold is enormous and the distribution chain is stretched to the breaking point, we do everything we can to keep investment metals in stock for you…

Gold or silver?

Both metals have their advantages and combining them is a sound investment strategy. While gold will always serve as a proven and reliable cornerstone in a portfolio, investing in silver offers the possibility of an interesting return if economic and technological trends develop favourably.

Gold was, is and will be. There is no currency in the world that has served as universally respected tender for as long as the yellow metal. For thousands of years it has provided people with financial security, impressing investors and art connoisseurs alike. In the stormy waters of today's world, you would be hard pressed to find another conservative investment that spreads the risk of loss and appreciates your finances at an above-average rate over the medium to long term.

Silver is also an excellent investment tool. The ranks of investors who prefer it to gold are growing, as it offers the unique benefits of an industrial metal in addition to its exciting appreciation potential. In the past, the price spread between gold and silver has been significantly lower. Today, gold is relatively expensive compared to silver, which increases silver's attractiveness as an investment.

In short, gold is ideal for those seeking stability, inflation protection and long-term store of value. Silver, which many modern industries cannot do without, offers more scope for dynamic growth.

Definitely invest in physical metal that you can touch, not digital or paper value. Physical investment gold and silver can be acquired in the form of coins or bars. We offer a wide range of products – investment bars from renowned foreign producers, investment coins from world mints and our own investment coins minted in the Czech Republic under the brand name Czech Lion.

Buy or sell?

It was 2008 when the US investment bank Bear Stearns collapsed and the price of gold surpassed the threshold of 1000 US dollars per troy ounce. It was 2020 when the world faced a coronavirus pandemic and the price of gold surpassed the threshold of 2000 US dollars per troy ounce. The year is 2025, general geopolitical tensions prevail, and the price of gold has surpassed the threshold of 3000 US dollars per troy ounce. And it is obvious that the yellow metal has not yet had its last word.

Analysts predict a continued rise in gold prices, attributed to increased interest from investors seeking safe-haven investments in response to escalating wars – both trade and military. For example, J. P. Morgan expects gold to trade at more than 4000 US dollars per troy ounce as early as this December.

The timing of an investment depends on an investor's individual financial goals and risk tolerance, but it is worth investing even as the price of gold is rewriting all-time highs. Gold was cheaper yesterday, but will be more expensive tomorrow…

The price of silver may also rise interestingly, due to increased industrial demand, especially in the renewable energy and electromobility sectors. US tariff policy may have increased fears of a global recession, but it is true that silver's strength will reappear as the global economy recovers.

Up or down?

Regardless of whether the price goes up or down, every investor should take into account that the precious metals markets are volatile and the exact timing of a purchase is difficult. Therefore, long-term investors often opt for a strategy of regular purchases, thus averaging their spending. At the Czech Mint, we offer our clients the so-called Golden Savings for this purpose. The Golden Savings, like the regular savings you may know from your bank, takes the form of regular monthly payments. However, these payments do not accumulate in your account at the Czech Mint – they are continuously converted into gold coins and bars during the savings period.

The difference between the purchase price and the sale price is called the spread. If you buy an investment metal, your investment will only be returned to you when its market price rises enough to exceed this difference. The size of the spread depends on the specific product and the current market situation. For a pure investment, standardised bullion bars and coins are most worthwhile. If you are also looking for artistic and collectible potential that can greatly exceed the simple value of the precious metal, reach for unique commemorative coins. Generally, the spread tends to be lower on standardized products. The lower it is, the quicker your investment will pay off.

Smaller weights may have a higher spread due to higher production costs relative to the weight. For silver, the spread is generally higher – this is due to the lower price of silver compared to gold, which means that the fixed cost of production is a larger percentage of the total price of the product.

Common mistakes made by investors include a lack of patience or buying products with a high premium over the spot price – the market price at which the commodity is currently traded on world exchanges.

Many new investors in precious metals expect to make a quick profit. This desire for immediate appreciation can lead to panic decisions, such as selling at the first price drop or buying at short-term price increases. Why is patience important? Precious metals are known to fluctuate in price. Although they tend to be profitable in the long term, they can go through periods of volatility in the short term.

Coins with a high premium can be very attractive to collectors if they have artistic or historical value, but for the average investor this can mean that the appreciation of the investment will be slower. Added to this is the fact that the sales market for collectible coins may not be as liquid as the market for pure investment products. If you buy a product at a high premium, you will need a larger increase in the price of the metal than for a pure investment product to make a profit.