Older Greeks remember that gifting one or more gold sovereigns to newborns was once a cherished tradition — a symbolic safeguard, often from godparents, meant to support the child into adulthood. Back when the drachma was still in use, one gold sovereign equaled about 300 drachmas. Since the collapse of the Bretton Woods system in August 1971, which anchored currencies to gold, the value of gold has skyrocketed. Today, with the euro as Greece’s currency, one gold sovereign is worth over €873 according to the Bank of Greece — more than the country’s minimum monthly wage and far above what many pensioners can live on.
Recent data from the Bank of Greece reveals a striking trend: during the third quarter of 2025, Greeks bought just 1,714 gold sovereigns but sold 9,365 back to the central bank. Over the first nine months of the year, purchases reached 5,399, while sales soared to 32,002. This surge comes even as global gold prices have risen by 47%, suggesting urgency rather than long-term investment strategy.
Official figures likely underestimate the real volume, as many transactions occur informally between individuals, avoiding the Bank of Greece’s significant markup (it sells coins for €130 more than it buys them). So why are people selling an asset that keeps gaining value?
While some sell out of financial necessity, most aren’t driven by immediate survival needs — many such households likely exhausted their reserves during the memoranda years. Instead, two main trends emerge. First, older owners, especially those who bought at lower prices decades ago, fear the rally won’t last and prefer taking profits now — following the old adage, ‘Better a donkey loaded than chasing it.’ Second, and perhaps more significantly, many are converting gold into real estate. Homes are still seen as safer, family-oriented investments, especially under inheritance laws, and using gold in private property deals offers discreet advantages, potentially reducing tax exposure.
As inflation erodes currency value and gold prices climb, this shift may continue — but whether it reflects wisdom or short-term pressure remains to be seen.