Gold Price in HUF

As a land-locked country in Europe, Hungary has one of the most expansive export-based economies possible. It also has a rich cultural history that makes it a prime tourist destination, and its classical architecture combined with its focus on preserving history gives it plenty to offer international travelers from all over the world. However, Hungary has faced major setbacks in recent years that should make most international investors take notice.

However, its hardships are of no fault of its own.

The Currency of Hungary (HUF)

The Hungarian Forint, or HUF for short, has been around since 1946. It was created to offset the weaknesses of Hungary's pre-WW2 currency, and it has had a bit of an unstable history over the last several decades.

One HUF is worth approximately 17 cents in USD as of the time of this writing, and that value frequently fluctuates depending on everything from global events to the changing value of the Euro it's pegged to.

However, Hungarians have used this fluctuating value to their advantage. During times when the HUF is strong, they'll hold their money in standard HUF format. When the value is likely to drop, they'll convert to Euros and successfully thrive throughout economic downturns.

This doesn't affect international currency investors too much, but it does help keep the country's economy from plummeting.

Currency investors looking to purchase Hungarian Forint should do so after a bit of hands-on research, and investment decisions should not be taken lightly. However, if they're done properly, they can be quite profitable.

The Economy of Hungary

Despite the Hungarian Forint's fluctuating value, the country's economy has been steadily growing for decades. That is until the Covid-19 pandemic created a fairly dramatic drop in its value.

This is due to Hungary's dependence on high-value industrial exports. The economy of Hungary is largely based on the manufacturing of automotive parts and industrial machinery. Unfortunately, this reliance on such niche exports, which are usually highly profitable, left the country open to economic downturns throughout 2019 and 2020.

Luckily, as the world continues to return to its previous state, Hungary's economy will likely see a massive boom. Would-be investors may find value in capitalizing on that potential boom.

Hungarian Gold Coins

Like many European Countries, Hungary does not currently manufacture or distribute any official gold coins with legal tender value. However, Hungary did issue gold coins in the late 19th and early 20th centuries. The most famous gold coin issued was the Austro-Hungarian Ducat. Commemorative versions of these coins are still produced by the Austrian Mint, however, all coins are minted with the year '1915'. Since the fall of the Austro-Hungarian Empire, Hungary has not issued its own gold bullion coins.

Gold Mining in Hungary

Gold mining is not considered to be a major industry in Hungary, and most gold in the country only exists as a byproduct of mining for other minerals. There are three major gold mines in Hungary, and the rights to mine all three are owned by Carpathian Gold, a Canadian gold mining company. 

Buying Gold in Hungarian Forint

Gold is in high demand due in Hungary to the industrial exports driving the economy, but it's also being bought up in record-breaking amounts by the Magyar Nemzeti Bank, which is the Hungarian Central Bank. The Magyar Nemzeti Bank is responsible for minting and distributing all of Hungary's currency. The Hungarian Central Bank also holds the nation's gold reserves. Starting in 2018, the country introduced a new policy of increasing gold purchases by a factor of ten. The aim of the country was to increase its gold holdings from just over 30 tonnes to just under 95 tonnes, which has been achieved in a very short span of time. Hungary is now in 36th place in terms of countries with the world's largest gold holdings. 

Investing in Hungary has also grown in popularity recently. Gold has been a bit more difficult to purchase recently, which is reflected in its price increase. 

For the most part, the Hungarian government is looking for gold bullion bars, and the private sector is targeting bars and coins. So, it's a worthwhile strategy to diversify one's stack with both common formats to make offloading their stack an easy endeavor.