2025 marked a historic year for investment gold, both globally and in Bulgaria, with record prices and growing investor interest. Over the past 12 months, gold surged nearly 60% year-on-year, setting more than 50 new price peaks, confirming its position as one of the best-performing assets. Despite a brief correction in October, the market has clearly entered a sustained bullish phase.

At the start of 2025, gold traded slightly above USD2,600 per troy ounce (approximately €2,500/BGN 4,890 per ounce), climbing to around USD4,300 per ounce (€4,160/BGN 8,140) by year’s end. The first phase of growth was fueled by expectations of major reforms under the new U.S. presidency. In April, the announcement of a renewed stage in the U.S.-China trade tensions prompted a temporary dip, but prices quickly rebounded, staying mostly between USD3,200 and USD3,400 per ounce (€3,100–€3,130/BGN 6,060–6,120) through the summer. By mid-October, gold reached a new all-time high above USD4,300, followed by a moderate correction before stabilizing toward year-end.

According to the World Gold Council, three main drivers powered gold’s 2025 performance: geopolitical uncertainty accounted for roughly 12 percentage points of annual growth, a weak dollar combined with lower interest rates added about 10 points, and price momentum plus new investor inflows contributed another 9 points. The broader macroeconomic backdrop, including high global debt and potential looser monetary policy, further supported gold’s appeal.

Central banks emerged as a significant, though partly hidden, source of demand. Analysis by Société Générale suggests that official declarations underestimate actual purchases, particularly by China. Over the past three years, central banks may have acquired at least 600 tons annually without public reporting, highlighting a substantial underlying demand in the global market.

Bulgaria also saw record interest in investment gold in 2025. Sales of physical gold rose 70% compared to 2024, while the number of Bulgarian investors grew by around 30%, according to Tavex and the annual survey “How Bulgarians Save.” Investors range from small-scale buyers acquiring 1 gram monthly to clients making substantial purchases at once, all seeking a safe store of value amid economic uncertainty and high liquidity.

In Bulgaria, gold bars remain the most popular investment product, led by 50-gram bars, followed by 100-gram bars, 1-troy ounce bars, and 20-gram bars. Even 1-gram bars, part of a financial education initiative, performed strongly, surpassing 1-ounce investment coins in sales volume. However, the 1-ounce coins continue to be favored for their liquidity and international recognition.

Max Baklayan from Tavex emphasizes that for Bulgarian investors, gold represents security, preservation of wealth, and financial stability in volatile times. Looking ahead, ongoing geopolitical risks, expectations of monetary easing, and continued central bank demand suggest that gold will remain a key investment globally and in Bulgaria in 2026.

Source: Tavex press release