The investment gold market in Bulgaria will reach a record amount of 1 billion leva by the end of 2025, Stoyan Tonev, a representative of a dealer of the precious yellow metal, announced in an interview with the Bulgarian National Radio. Currently, the market has reached about 800 million leva and by the end of the year it will pass the psychological threshold of one billion.
"So far, we are at about 800 million leva and this year we will surpass a billion in the purchase of investment gold," said Tonev, quoted by the Bulgarian National Radio.
According to the expert, Bulgarians rank third in Europe in the purchase of gold after the Germans and the Poles. This shows a high financial culture and caution of Bulgarian investors.
There are several reasons for the growing attractiveness of gold as an investment, the expert explains. The price of gold is rising globally, with the growth starting in 2019 and being particularly large in 2024 and 2025.
"The war in Ukraine is also a factor in the price, it started in February 2022 and in the middle the purchase of gold by central banks began. They are a major player, a smart player. When they buy, investors should buy too,", recommended Tonev.
Central banks bought 1,080 tons of gold in 2024, and in 2025 about 1,000 tons are expected, the expert pointed out.
The Bulgarian defines himself as a "cautious investor", explains Tonev, linking this to the historical experience of hyperinflation in 1997 during the so-called. "Videnova Winter".
"Buying signals a high financial culture. And the Bulgarian is the last to experience hyperinflation, 1997. The Videnova Winter. I would call the Bulgarian a "cautious investor" and that is what I attribute to the high demand for investment gold in our country," he added.
According to the expert, a great advantage of investment gold is its tax status. This type of gold, which has a purity of over 900 (over 90% gold in the product), is exempt from VAT and customs duties worldwide, which makes it particularly attractive to investors. Tax is due only when a profit is made from its sale.
Many Bulgarians who have savings in cash prefer to convert them into gold, which creates additional demand on the market, the expert concludes.