Afternoon:
9°c
Soaring demand for gold from savers desperate to take advantage of the record bullion price, forced the Royal Mint to more than quadruple production of gold coins in the third quarter of the year.
Output from the 700-year-old institution which mints sovereigns and other coins from the yellow metal, rose to 32,735.8 ounces in July, August and September compared with just 7500 ounces in the same months a year earlier.
That marked an acceleration on the already-rapid growth seen in the previous two quarters.
Low interest rates have driven savers away from traditional bank savings accounts and shares into gold coins, even though dealing costs are still higher than many other forms of investment.
David Russell, of bullion dealer GoldCore, said gold's safe haven status was also boosting demand: “There's still a total lack of confidence in the financial system. Investors are seeing the benefits of diversifying into gold. Smaller investors are clued into the fact that inflation possibilities are a worry for the future.”
The Royal Mint, whose output was published after a Freedom of Information request from Bloomberg, is not the only one having to crank up its presses. Sales of American Eagle gold coins by the US Mint more than doubled in the first nine month of the year to 954,000 ounces. And Harrods began selling gold bars and coins for the first time last month.
The world's biggest maker of pure gold coins, the Austrian Mint, last month said it had sold 1.9 million ounces so far this year — 23% more than in the whole of the previous year.
The Royal Mint, based since 1968 in Llantrisant, in Wales, is one of the state assets earmarked to be sold by the Government. Gold prices set a record of $1150 an ounce earlier this week, pumped up by big purchases by a number of central banks in the month.
