Czechs turn to Gold as a Safe Haven from Inflation

The Czech Republic has seen declining inflation rates but remains in the double digits. It’s no surprise, then, that people are turning to gold to store and invest their money. Almost three-fifths of Czechs consider gold an investment that protects against inflation.

A recent survey by STEM/MARK agency for the Czech Mint has shown that Czechs perceive precious metals mainly as an investment tool for preserving value. They are aware of the coins’ collectible potential, which enhances their value beyond the cost of the metal.

Ten percent of Czechs have a gold bar at home, while most own a gold investment coin. And it’s the gold coin people associate with investment, with every sixth respondent buying one, mainly to make money.

Gold is the most preferred precious metal for investment, with almost three-fifths of people mentioning it. Five percent of respondents would choose silver as an investment, and six percent would opt for platinum. However, every third respondent could not decide.

More than half of the people (56 percent) decided to invest in gold and other precious metals themselves. A fifth got a recommendation from a banker or financial advisor, one-sixth took advice from friends or family, and four in a hundred people decided to invest in gold based on an advertisement.

In recent years, people have bought gold coins mainly for investment purposes and as a hedge against inflation. Collections account for only a quarter of those who buy gold bars, coins, or medals. The Czech Lion coin has been hugely popular among first-time buyers. However, people who mainly want to appreciate their investment buy gold bars and coins that have significant collector potential beyond the cost of the metal.

People prefer to buy gold from brick-and-mortar stores, with two-fifths of respondents stating this in the survey. A fifth of people prefer to buy gold online, and a quarter of respondents don’t care about the place of purchase.

More than three-quarters of people perceive investing in gold and other precious metals as safe. Almost half has up to 50,000 crowns invested in precious metals, a third has up to 150,000 crowns, and a tenth has over half a million crowns invested.