Tavex Group, an investment gold trader in Northern Europe, also operating on the Romanian and Southeastern European markets, reported a turnover of nearly 22 million euros in Romania for 2023. The company anticipates a 30% increase in business by the end of 2024. Last year, Tavex Romania sold over 30,000 gold bars and more than 10,000 gold coins.
In 2023, Tavex sold a total of 360 kg of gold, a decrease from the previous year when the onset of the Ukraine war in 2022 spurred a surge in gold purchases, mainly due to the people’s fear of instability prompted by a neighbouring conflict.
In the first three months of 2024, Tavex sold 81 kg of gold in Romania. The company concluded the first quarter with a turnover of 5 million euros from the investment gold segment, excluding revenue from currency exchange operations. Buyer preferences leaned towards gold bars (65%) over coins (35%). Romanian clients who invested in gold are mainly in the age group 35-55 years old.
Tavex Group recorded 164,000 new customers last year, compared to 268,000 customers in 2022, a decline attributed to a large extent to the Ukraine war. Tavex plans to increase its team, which currently consists of 25 employees in Romania, and announces the business expansion by opening a new location in Bucharest.
Victor Dima, Dimo Stefanov, Nicolae Daniel Voloscsuk
“We are very pleased with the performance reported in 2023, despite the global economic challenges. With a turnover of 22 million euros, we have managed to consolidate our position on the gold investment market and continue to expand. This is reflected in the gold bars and coins sales increase, as well as in the raised interest manifested by our customers in our high-quality products. As we continue our expansion, we remain dedicated to our mission to educate the local market regarding the benefits of gold investments. We are confident that 2024 will bring new opportunities and outstanding achievements for Tavex”, Dimo Stefanov, CEO of Tavex Romania told a press conference today.
“In a volatile market, with raising inflation and increasing interest rates, gold investments became a popular choice to protect savings. If we talk about the international market, people are starting to realize that investment gold should be a part of their portfolio and that it can be a valuable safety asset in these uncertain times. On the other hand, on the local market, the concept of investment gold and its benefits represent a significant opportunity to explore. This is where we come in, to educate the local market and to give people an opportunity to protect their savings. The central banks continue to add gold as an investment option to their portfolios, and we see an increasing interest among our clients, for both large and small investments”, Victor Dima, Treasury Department Manager of Tavex Romania also said.
Tavex representatives said that investments on the gold market are considered in gold bars and gold coin rather than in gold jewels. Customers have the possibility to buy gold online or directly from Tavex locations with flexible payment options. The payments can be cash, up to 5,000 lei for delivered products or up to 10,000 lei.
The prices of the products in the company’s portfolio start from 400 lei per gram of gold and going up to 36,000 lei for a 100-gram gold bar. Customers can also purchase larger gold bars, available by request, ranging from 1 kg to 12.5 kg or more, typically preferred by institutional clients.
The best-selling product was the 1-gram gold bar, which featured an attractive promotion: a free 1-gram gold bar for purchasing a 1-gram gold bar every month for 12 consecutive months.
“The price of gold behaves in a rather strange way. Although it is generally inversely correlated with indicators such as the stock market and bond yields, this rule has not applied for two years. The demand for gold is decreasing in Western countries and increasing in Eastern countries. These trends call into question the integrity of Western economies, especially against a backdrop of economic stagnation. I believe that the price of gold has all the necessary advantages to reach record levels in the coming months”, says Nicolae-Daniel Voloscsuk, Economist Tavex Romania.
Globally, the demand for gold bars and coins increased in China , India and Turkey in 2023 and the trend maintained in 2024 as well, while it decreased in Europe and the USA.
“China is the second largest gold producer in the world after Russia. Chinese have different purchasing behaviour compared to Westerners. They save more, besides they do not have many investment options, so they largely invest in gold, including in gold jewelry. In 2023, there were almost 1,000 tons of gold in private consumption in China”, Voloscsuk also explained.
There was also an increasing demand of gold from the central banks, with 2022 and 2023 posting record highs in terms of gold acquisitions.
Currently, Tavex collaborates with worldwide famous refineries and also with the Austrian Mint, Valcambi Suisse, PAMP, Perth Mint, China Great Wall Coins Investments LTD, United States Mint, Argor Heraeus, Royal Canadian Mint and Royal Mint, as an insurance of the products’ quality and authenticity.
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