Record Earnings for Croatia’s Largest Gold Trader

By 7 January 2017

Gold is becoming more popular as an investment opportunity.

In the last year, Auro Domus Bullion Market has sold a total of 150 kilograms of gold and thereby generated revenues slightly higher than 40 million kuna, which is an increase of 42 percent compared to the previous year, reports Jutarnji List on December 7, 2017.

According to Davor Žic, director of marketing and public relations at the largest Croatian company specialized for trade of gold, in 2016 they significantly increased the number of clients, people who buy investment gold. They managed to sell the record number of one kilogram gold bars. The largest individual buyer in Croatia bought a little more than ten kilograms of gold, worth about three million kuna. During the year, they sold about 15 largest gold bars, 20 bars of 500 grams, and about a hundred of 250 gram bars.

However, their best-selling product were gold coins, whose price depends on the size and ranges from 1,000 to 4,000 kuna. Gold bars of 100 grams cost about 27,000 kuna, while bars of 250 grams cost as much as 68,000 kuna.

Auro Domus expects that people in Croatia will continue with the trend of increased investments in gold, which is accompanied by favourable circumstances – there is no VAT on gold and individuals do not pay taxes on gains earned by the sale of gold, which means that gold is the only tax-free investment, as opposed to, for example, real estate or stocks.

The company will continue negotiations with the leading Croatian banks about the introduction of investment gold in the banking business, which is a standard in Western countries. The value of gold in 2016 increased by significant 9 percent, which was the first annual increase in prices of the precious metal since 2012. Analysts predict that the price could continue to grow this year. According to some estimates, in the next 12 months it could reach 1,300 dollars per ounce, which would be ten percent higher than today.

“Analysts base their assessment on the fact that 2017 will be politically and economically turbulent year. We have an announced increase in interest rates in the US, which is a factor favourable for the growth of dollar, but negative for the sector of investment metals. However, the Fed also said it would raise benchmark interest rates in 2016 as well, but it happened only in December, and the price of gold jumped around 30 percent in the first half of the year”, concluded Žic.