Hungary is a former member of the Eastern Bloc, and it has seen dramatic economic growth since joining the European Union and pegging its Forint to the Euro. The economy isn't the strongest, but its growth has quickly been lowering unemployment rates and helping to strengthen its currency. Unfortunately, the Covid-19 pandemic has put a major road bump in Hungary's path to economic success, and while this is negative for the country, it can be useful for those willing to invest in its precious metal market. Due to Hungary's steadfast resolve and in-demand exports, the country is expected to continue and rebound upwards over the next couple of years.
The Economy of Hungary
The economy of Hungary has been complicated, yet largely positive, for years. After leaving the Eastern Bloc, Hungary joined the EU and began to utilize an export-oriented economic model. This economic model is based on the exportation of industrial machinery, transportation equipment, agricultural products, iron, steel, wine, and textiles.
Until recent times, this has decreased the unemployment rate dramatically since its time in the Eastern Bloc, and while unemployment is still high in its northern portion, most citizens live reasonable lifestyles.
This heavy dependence on exports is largely why the country is facing so many problems during the Covid-19 pandemic. As the global market has slumped inactivity, Hungary's ability to export its products has plummeted.
However, as tensions begin to ease, Hungary is already bouncing back.
The Currency of Hungary
Hungary's currency is relatively young. It first adopted the Forint, or HUF, in 1946. The currency has gone through minor changes over the decades, and it was considered weak on the global market until circa 2015. Since it has strengthened considerably, and it has even become a solid investment opportunity for short-term investors.
However, the value of the HUF has dropped dramatically since 2019, and its rebound is expected to be fairly slow. Luckily, those with silver and other precious metals can rest easy knowing much of their wealth is preserved.
This may also be a good opportunity for those who have maintained their wealth to invest in precious metals, as Hungary is currently buying large amounts of gold and silver, and its industrial sector relies on both. In the near future, prices could skyrocket again.
Buying Silver in HUF
Buying silver in Hungary is a solid plan that investors of all levels can benefit from. Due to the volatile nature of the HUF, silver is a low-cost, stable investment that can hold wealth even if the HUF plummets. Silver can be purchased in the form of coins, bars, and jewelry, but coins tend to be the easiest to sell off, and they often turn a slightly higher ROI than bars.
However, the real bulk of Hungary's silver potential is in its mining investments. The silver mining industry is key to many of the industrial exports Hungary bases its economy on. Mining stocks can consistently grow in value without requiring extensive selling periods when an investor wants their profits.