In the first half of March pthe price of gold has broken the psychological threshold of three thousand dollars per troy ounce for the first time and continues to rise. It set a new all-time record on Wednesday, March 19, when it rose to US$3,045. The precious metal broke the record in Czech crowns three weeks ago. Nevertheless, the interest of Czech buyers is growing.
Gold is thriving and its price is breaking one historical record after another. In mid-March, it broke the three thousand dollar mark; in crowns, the world's most precious metal has had its all-time high for longer. "The record day for gold in crowns was February 20, when a troy ounce cost CZK 71,100 on the exchange. However, due to a significant weakening of the dollar, the price quickly fell to 66,000. However, the price decline did not last long and the current price of a troy ounce is again close to CZK 70 000. The next major milestone is USD 3,200, which gold could reach by the middle of this year. After that, we expect a correction in the range of 10 to 20 percent," predicts Roman Pilíšek, economist and co-founder of the company Golden Reserves.
According to estimates, there are approximately 20 tonnes of gold in Czech households. Compared to other Europeans, their reserves of the precious metal are negligible. Nevertheless, Czechs are slowly learning to buy gold and the interest of small savers is currently growing. "The gold price is volatile, but in the long term it shows a clear upward trend. With small fluctuations, the gold price will continue to rise over the current eight-year cycle until approximately 2027 to 2028. People are currently taking more advantage of the approximately five percent correction in the gold price to buy gold. In the Czech Republic, the number of repeat buyers is increasing, and they are buying more gold at home. This was confirmed during the March downturn, when sales rose 100 per cent. Moreover, those who have bought gold before are not yet willing to sell their gold. Czech households' gold stocks are thus growing year-on-year," Pilíšek said.
Small savers, but also big "players" often copy the behaviour of central banks. While the world's banks have been increasing their gold reserves for a long time, the Czech National Bank (CNB) started buying the precious metal more aggressively only five years ago. "The Czech National Bank held almost 55 tonnes of gold at the end of February, the most since 1998. If the pace of purchases continues, the Czech National Bank's holdings will be the largest in its history, i.e. since 1993. It is likely that the CNB's behaviour is also influencing Czech buyers - when the Czech National Bank increases its stockpiles, Czech savers also increase them," Pilíšek concluded.
paermedia/ gnews.cz - RoZ
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