Lithuanians are buying gold due to economic uncertainty

Because of the regional uncertainties, Lithuanians are actively buying gold bars and coins. The head of a Lithuanian mint says it is often the case that investments flock to gold during crises, reports Lithuanian National Broadcaster LRT.

People motivation to buy gold is understandable.  They usually say that money is disappearing quickly, while gold is stable and easy to sell. Compared to last year, gold sales in 2022 went up several times.

–  informed Linas Veikalas, director of the only mint’s in Baltics.

In particular, the uptick followed the beginning of the war in Ukraine. Historically, gold was a “crisis” investment instrument. Looking at the whole situation, looking on today’s inflation, Lithuantian Mint  expects the price of gold to rise.

Tavex Group saw both price and demand rise literally every hour when the war started. Investment gold was swept off the market. The price of gold depends on the stock exchange and can fluctuate on a daily basis. For this moment not only gold price, but also offer of physical gold is affected by one important factor – ban on Russian gold.

Demand for gold in Baltic states

According to Tavex Group data, demand for physical gold in Baltic states in B2C segment has risen aprox for 200 kg of investment gold per month since the end of February. Average deal is about € 3000.

We live in new reality, when demand of physical gold is very high and production capacities have reached their maximums.

At the end of 2021 it was normal to work in the way when everyone can come and buy gold bar or coin, all investment products were available at place.” – informed Jānis Astičs, Tavex Lithuania precious metals market department manager.

Now it is normal situation when some weights of gold bars are not produced in factories so fast as we used to it. In August one of the biggest Europe gold refineries Valcambi, which official dealer in Scandinavia and Baltic states is Tavex Group,  informed about extension of delivery terms. In our timetable with gold deliveries we see, that some flights with Valcambi gold bars are expected not faster then after 5-6 weeks. It definitely will affect delivery terms in all Baltic region, cause no one will get gold faster then Tavex Group.

Available gold in warehouses

Positive in this situation is that some gold refineries and mints still have deliveries in normal terms, so people still have chance to buy investment gold products which are available at place and could be sent out and delivered to customer immediately.

Gold bars and coins remain the most popular form in Lithuania to buy the precious metal. Usually people are investing in larger gold bars, weighting up to a 50 – 100 grams, but it is worth to state Tavex is offering reasonable price even on small gold bars – it means everyone can afford investments in gold.

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1 oz Austrian Philharmonic Gold Coin

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Source:

• LRT
• Tavex Group sale reports

Disclaimer: This report is prepared as a marketing statement by SIA Tavex marketing department for informational purposes only. The information or opinions expressed in this report (regardless of the source of the information) should not be construed as suggesting, advising or soliciting an offer to buy or sell any financial instrument. The information in this report does not constitute investment or tax advice and does not consider specific investment objectives, risk appetite and the financial position of the message recipient. This article may not be distributed, copied, reproduced or altered without a prior written consent of the Company. To avoid any misunderstanding, any additional information, which should not be considered a recommendation and / or advice, can be obtained from the company upon request.