"Where is my money actually safe?" - an age-old question which people have been asking for centuries. The answer remains the same: gold. Last year, with the forint weakening, Hungarian gold investors were able to achieve returns of up to 45 percent. This year's expected gains still depend on several factors, but the market is anticipating the precious metal to strengthen by a further 10-15 percent.

It is important to avoid the following misconception: "I am not wealthy enough to purchase gold." For centuries, individuals have sought to invest a portion of their wealth in gold. Gold, a soft, precious metal, is widely regarded as a haven, offering protection during periods of war and economic turbulence. Geopolitical tensions, for example in the Middle East or Ukraine, can also boost demand for gold.

Should the global economy experience continued fluctuations in 2025, such as high inflation, indications of a recession, or an economic slowdown, then this may result in an increased demand for gold. Regardless of an individual’s financial situation, it is recommended by experts that everyone should retain 5-10% of their liquid assets in gold bars and coins. In certain countries, including Germany, India and Russia, the acquisition and ownership of gold is a prevalent strategy for safeguarding and preserving wealth.

A long-term safeguard for wealth
As with any investment, there are several factors to consider when investing in gold. These include the value of the assets, the method and duration of the investment, the expected return and the way it is stored. It is important to note that gold (not just coins) has two sides to it: in the long term it is a reliable investment, while in the short term its market value can often change, as it is also a favorite target for speculators.

The Bullionbypost.eu report on the purchase of precious metals provides a comprehensive overview, stating: "In times of economic uncertainty and instability, buying gold makes more sense than other assets. With confidence in the banking system and worldwide economy at an all-time low, gold bars or bullions could be the ultimate insurance and should act as an essential part of everybody’s investment portfolio."

As the well-known saying goes, if you don't hold it, you don't own it. There are indeed many advantages to physically holding your gold. However, the 'tangible' nature of physical storage represents a dual challenge, both as a disadvantage and a potential risk of theft. In order to mitigate these threats, it is advised to consider implementing one of the following four fundamental security solutions: segregated storage, bank safety deposit, home safety, or other additional security options.

This form provides investors with the flexibility to determine the location and timing of releasing a portion or all the investment value. Hundreds of precious metal dealers are ready to purchase gold immediately, enabling investors to receive the equivalent value of the gold in a matter of minutes, either by bank transfer or by immediate cash payment.

The previous year proved to be successful, and the current year is showing similar promise
It is clear that those who invested in gold in 2024, both domestically and internationally, have achieved significant success. For domestic investors, the return on gold investments was 45 percent, driven by the weakening of the forint. This was achieved after the price of gold rose above $2,100 per ounce for the first time in four years. (In dollar terms, the price of gold rose 26% during 2024.) The US presidential election, which was primarily influenced by the strategic positioning of speculative capital in the West, further contributed to this surge, elevating the precious metal's market price to an unprecedented high of $2,800.

According to experts in the field of wealth management who have been speaking to Bloomberg, there is a strong possibility that 2025 will see a significant appreciation in the price of gold, following the rally that we saw last year. Leading financial institutions on Wall Street anticipate a 10-15% surge in gold prices this year. Should inflation resurge on a global scale this year, the yellow metal could reach a psychological threshold of $3,000/ounce within six months, a development that would bode well for silver and platinum.

The global demand for gold is on the rise
The global economy has only recently begun to show signs of recovery from the financial crisis of 2008, yet the emergence of the pandemic caused by the Coronavirus has precipitated a fresh phase of economic turbulence on a scale not witnessed since the Great Depression. In response to these challenges, central banks have resorted to printing large quantities of money, leading to a surge in public debt across many nations to levels not seen since peacetime. This has caused concern among financial analysts regarding the possibility of rising inflation.

As anticipated, gold prices rose to a new historic high in August 2020, driven by sustained investor demand. The global economic challenges of the aftermath of Brexit, the Ukraine-Russia war, the deteriorating situation in the Middle East and climate change further exacerbated the situation, while gold has once again proved to be a crucial asset.

According to WGC data, demand for gold (and silver) is increasing year on year, not only for investment but also for industrial purposes. In the former case, demand is driven by the desire to preserve wealth and diversify portfolios to achieve higher returns. In the latter case, gold and silver are being used more frequently in modern technologies, including smartphones, electric cars and solar panels.

The exchange rate is also influenced by central bank demand
A key factor that must be considered is the demand for physical gold. With the world's central banks having been steadily increasing their gold reserves for some time and overall demand in many countries higher than ever, experts predict that gold will remain a highly valuable commodity for some years to come.
There has recently been an increase in demand for gold investments, particularly in China and India. Germany, Switzerland France and Turkey have experienced record levels of interest in gold among the European countries that have been surveyed.

Gold becomes the favorite choice among countries shifting away from the dollar

In times of national emergency or international crisis, it is often recommended that a country should begin to accumulate gold reserves. With tensions between countries rising, and with various countries trying to put sanctions on the US dollar and other currencies, central banks are now very keen to buy gold.

Between 2013 and 2023, China and Russia were the leading purchasers of gold on the global market. Both countries want to reduce their reliance on the US dollar. Russia, which is under international sanctions, has increased its gold reserves the most. In 2013, Russia had 1,035 tons of gold, but by 2023 it had increased this to 2,333 tons. China's gold reserves rose from 1,054 tons to 2,235 tons, and Turkey's reserves increased from 116 tons to 540 tons. Poland came fourth, with the central bank increasing its gold reserves from 103 to 359 tons. India, Uzbekistan, Kazakhstan, Singapore, Iraq and Thailand are the next countries in the top ten. The last country on the list increased its reserves by "only" 92 tons. Hungary's gold reserves of 3.1 tons, until 2018, were much higher than those of the Czech Republic, Serbia, Latvia and Lithuania. This is because in 1990, the Magyar Nemzeti Bank sold most of its 62 tons of gold in a short period of time. The price of gold has increased by $1,100 per ounce since then, so the gold would now be worth three times as much.

At the end of September last year, Magyar Nemzeti Bank increased its gold reserve, raising the total from 94.5 to 110 tons. This now represents Hungary's total gold reserve. Visitors to the Money Museum in Budapest are welcome to view a gold bar, which they can also lift if they wish. Further information can be obtained by visiting the Money Museum in Budapest, which is located in the impressive central bank building (the former Buda Postal Palace) overlooking Széll Kálmán Square.