Croats invest more in gold and stocks, and less in real estate

Croatian citizens are investing more and more in gold, precious metals, shares and cryptocurrencies, that is, in financial markets, and less and less in real estate, it was said on Thursday at the round table "How to preserve the real value of money in challenging times", organized by the Croatian Chamber of Commerce.

The focus was on the three most represented forms of investment - financial markets, gold and precious metals, and real estate, with an overview of their advantages, risks and current trends.

Director of the Investment Gold Sector of the Auro Domus Group, Vladimir Potočki, said that investing in investment gold definitely justified its role in preserving the value of capital in macroeconomic imbalances and geopolitical uncertainties.

“Gold,” he said, “is a very good guardian of the value of capital in times of inflation, but also of the profits that capital has made by investing in gold.”

“Investing in gold represents an anchor and a permanent foundation for the stability of everyone's portfolio,” emphasized Potočki, adding that history has shown that gold is not a relic of the past, but rather the foundation for capital stability in the future of every individual, but also of the state.

He emphasized that any time is good to invest in gold, but also that in Croatia we need to create an investment culture, such as already exists in the West, especially in the USA.

He stated, namely, that there is a big difference in investing in Europe, including Croatia, compared to the USA.

“Europe is still social and its population believes that the state will take care of individuals when they retire, unlike America where over 50 percent of the population invests in the capital market, i.e. financial assets,” said Potočki.

Otherwise, financial assets in the portfolios of Croatian citizens account for only three percent, while in the EU they account for 27 percent.

He also emphasized that 90 percent of Croatian citizens continue to invest in real estate. With the accession of the Republic of Croatia to the EU, VAT on investment gold was abolished, which equalized the rights of Croatian citizens with the citizens of the EU countries.

“The turnover of precious metals in Croatia has been growing rapidly in recent years, partly due to the price itself, but also due to the volume,” he said. For example, in 2024, turnover amounted to 350 million euros, a year later between 800 and 900 million euros on an annual basis.

“This shows that Croatian citizens have also recognized investment gold as an equal asset class,” said Potočki.

Asked how much the price of gold has changed over the past five years, he said that a gram of gold cost between 30 and 35 euros five years ago, and today it is 140 euros.

InterCapital Management Board Member Marko Bogdan claims that financial markets are by far the greatest generator of wealth in history.

“Financial markets allow for a very wide range of different types of investments,” he said, adding that people in Croatia are also becoming increasingly aware of the need to preserve the real value of money, especially during inflation. On the other hand, digitalization has made it possible for practically anyone to invest in the capital market.

“Today, anyone can invest, even with ten euros in their account,” Bogdan emphasized. According to him, younger people invest more in cryptocurrencies, because they are looking for a quick and high return, while older people are more cautious and invest in stocks.

The President of the Real Estate Association at the Croatian Chamber of Economy, Dubravko Ranilović, reiterated that the real estate market, as an investment, has been falling in recent years.

Over a third of buyers investing in real estate are foreign citizens, but that number is also falling, especially in the coastal region.

However, he expects that the situation on the real estate market will stabilize, but that prices will also be corrected.

Asked how much Croatians are investing, the chief economist of the Croatian Chamber of Commerce, Goran Šaravanja, said that Croatia is getting richer and has funds available for investment, and it is just a question of whether people want to invest.

Source: HRT