Investment Ten Times More Profitable Than Treasury Bills: 'Gold Becomes Synonym for Long-Term Security'

Many Croatians have been investing their savings in treasury bills, entrusting their money to the state with the expectation of earning a return. However, recent data suggests this strategy has led to financial losses, while a more lucrative alternative in physical gold has been overlooked.

The inflation rate in Croatia stood at 5.8% in April 2026. This means that the cost of goods and services increased by this percentage over the past year, eroding the purchasing power of money. For investors, this implies that any investment must yield at least 5.8% simply to break even. Treasury bills, which offered a return of only 2.5% over the past year, failed to keep pace with inflation, resulting in a real loss for investors. This situation is particularly concerning given that Croatians have invested over 14.3 billion euros in treasury bills and national bonds in recent years, earning a mere 370 million euros.

In stark contrast, the price of gold in euros has surged by nearly 34% in the last 12 months. Had Croatians invested the same 14.3 billion euros in gold coins and bars a year ago, they could have realized a real profit of nearly 4 billion euros. This represents a return more than ten times greater than that from treasury bills. Consequently, an increasing number of Croatians are shifting their investments from treasury bills to physical gold.

Over the past 20 years, gold has demonstrated an average annual growth rate exceeding 10%, outperforming both the average inflation rate and many other investment vehicles. Major global investment banks forecast a 20% rise in gold prices this year. Central banks worldwide are also increasing or maintaining their gold reserves as a hedge against various risks. These global trends are increasingly being mirrored by Croatian investors, with data from Centar Zlata indicating a more than 50% increase in demand for physical gold coins and bars in the first half of 2026 compared to the same period last year. Investment gold, in the form of coins and bars, is standardized and highly liquid, allowing it to be exchanged for money anywhere in the world at any time.