Poland has seen explosive economic growth over the last decade, and it's quickly becoming one of the European Union's most wealthy and stable countries. As of now, it's already the sixth strongest economy on the continent, and its once extremely high unemployment rate is plummeting to record lows. Combined with its industrialized export economy increasing the demand for precious metals and mining, the Republic of Poland is becoming a prime opportunity for metal investors both in the country and around the world.
The Economy of Poland
During its time in the communist Eastern Bloc, Poland struggled economically and unemployment skyrocketed. That downward spiral ceased in 2004 when Poland officially joined the European Union, pegged its Zloty to the Euro, and began overhauling its economy and social welfare practices to create a country ripe with opportunities and quickly growing wealth: Both for individuals and the central bank.
Now, Poland is climbing its way up the ranks of the most powerful European economies with lightning speed. This is largely due to its exportation of industrial machinery, metal products, chemicals, and textiles. This is supplemented by the high volume of agricultural products the country produces, but agriculture is no longer its main means of economic growth.
This mix of economical strengths makes Poland somewhat resistant to global market fluctuation, but it is still trying to diversify its exports and internal trade industries to become more stable. Luckily, the country's focus on industrial production has driven up government demand for precious metals; making them a fairly safe and profitable investment.
It should be noted that the Covid-19 pandemic has slowed Poland's economic growth and raised its unemployment slightly, but the country is quickly rebounding.
The Currency of Poland
The Polish Zloty, or PLN, is a younger currency that was previously volatile. However, since it was pegged to the Euro in 2004, the Zloty has grown in value and stabilized quite a bit. Now, it's a reasonable investment for holding wealth in the short term, and more countries are trading it on a global scale.
However, despite the Zloty's young age, it will not be the country's currency in the long term. This is due to the same European Union agreement that has boosted the country's economy and currency value. As part of the agreement, Poland will have to switch to the Euro at some point. This makes investing in the country's precious metals a smart idea for Polish citizens or those holding Zloty for investment purposes.
Buying Silver in PLN
Due to the impending transition from Zloty to Euro, investing excess wealth into silver can allow one to hold onto wealth throughout the transition. This is on top of silver's relative safety as an investment overall. Silver may be more attractive than gold for many investors. It's a low-cost precious metal in Poland, and it tends to follow the gold price despite constant fluctuations. This is further exaggerated by the Polish government's current desire to buy large sums of gold to bolster the strength of the Zloty. Silver will likely follow suit.