Gold Price in PLN

Gold Price in PLN

The Republic of Poland has an interesting economic history due to its transfer from what used to be the Eastern Bloc to the European Union. In the past, it was an impoverished country that faced many economic and political hardships that prevented it from being a meaningful addition to the global investment market. However, that has quickly changed over the last two decades. 

In 2004, the Republic of Poland officially joined the EU, and it has seen consistent growth in prosperity since. 

This has helped the country emerge into the global marketplace strongly, and it is quickly becoming a top competitor in Europe. It's easily one of the top countries for international investors to consider due to this quick and stable climb. 

The Polish Economy

Poland's economy was once based mostly on the power of a free market and its agricultural advantages. However, it has changed to a much more diversified economy since joining the European Union. Primarily, Poland bases its economy on the service industry, industrial manufacturing, and agriculture. 

This diversification has not only aided in the massive growth of Poland's economy but has strengthened it against the constant fluctuations of the global market. However, that doesn't mean that its growth is the most consistent. 

With a GDP growth of 5.8% in 2018, the country has slowly plateaued to a range of 2-3% annual growth, and the effects of the Covid-19 pandemic may have small, but lasting effects on its growth for the next few years. This shouldn't be taken as a negative sign, though. Its continued growth is unlikely to change, and despite its GDP slowing, it is on track to rival Germany; one of Europe's economic giants. 

The Currency of Poland

Poland has used the Zloty since 1528, and the currency has a rich history due to its long circulation period. It hasn't remained the same over the last 500 years, though. In 1928, the old Polish Zloty went through significant revisions to combat the inflation brought on by World War 1, and the old format is no longer accepted. The new Polish Zloty, or PLN, is pegged to the Euro and growing in value and strength with each passing year. 

However, it's still not a very valuable currency. One Polish Zloty is worth just slightly more than a US quarter dollar, and it falls behind the Euro significantly. Considering its rapid growth, this may make it a worthwhile investment. 

Finally, while the Zloty is still the official currency of Poland, and Polish legislative authorities do not support the adoption of the Euro, it is part of Poland's agreement with the EU that it will eventually participate in Euro circulation. So, the Zloty may very well end up replaced over the next few decades. 

Buying Gold in PLN

Gold is currently a hot commodity in Poland. It can be purchased in the standard bar and coin formats, and the industrialization of Poland has increased its commercial demand dramatically. There's another reason gold is becoming a worthwhile investment in PLN, though. 

The National Bank of Poland has suddenly begun purchasing gold in massive amounts, and it plans to use it as a way to reduce its dependency on its other assets. As of the time of this writing, the goal is for Poland to house over 300,000 tons of gold in its government reserves. 

The preferred format for Polish gold investors is bullion coins, but the soaring gold market makes all formats reasonably profitable and capable of retaining their value in the long term.