Croatian investors turn to gold as treasury bond returns lag

Croatian savers have moved more than €14.3 billion from state Treasury bonds and government securities into physical gold. The bonds delivered a nominal return of about 2.5 % over the past year, far below the 5.8 % inflation rate, resulting in a real loss for investors. By contrast, gold prices rose roughly 34 % in the last 12 months and have averaged over 10 % annual growth for the past two decades, with major banks forecasting further increases of up to 20 %.

Demand for gold bars and coins in the first half of 2026 grew by more than 50 % compared with the previous year, according to the Centre for Gold. Investors cite gold’s tax‑free status, high liquidity and physical ownership as advantages over Treasury bonds. If the €14.3 billion previously placed in bonds had been invested in gold a year ago, the returns could have been close to €4 billion, more than ten times the bond earnings.