The Royal Mint, the home of UK precious metals investing, has today published its latest precious metals update, revealing recent trends in global precious metals investing.
With the price of gold rising steadily, demand for precious metals has strengthened. A combination of ongoing geopolitical uncertainty, global volatility and falling interest rates saw gold prices in sterling continue to rise over the third quarter, with the gold price in sterling now up 20% this calendar year so far (data as of 30th September 2024) This price momentum fuelled interest in gold, with gold bullion sales from The Royal Mint rising 63% year-on-year. Similarly, the total number of customers buying gold has risen by 11% over the same period.
Data from The Royal Mint shows that amid growing investor appetite for gold and silver in the last quarter, UK investors are increasingly favouring CGT-exempt products, such as bullion coins. Sales of CGT-exempt bullion coins on The Royal Mint’s website have surged to a record high in the third quarter, with revenues up 110% compared to the same period last year. This has primarily been driven by a significant uplift in gold bullion coin sales. Between July and September 2024, revenues from silver and gold coin sales rose by 42% and 118% respectively, when compared to the same period in 2023. By contrast, sales of bullion bars, which are subject to Capital Gains Tax (CGT), have fallen, dropping by 11% year-on-year.
With bullion coins produced by The Royal Mint classed as CGT free investments, they provide a tax-efficient way to invest in precious metals. Earlier this year, research from The Royal Mint found that 44% of UK investors were considering investing in CGT-exempt bullion coins to build their wealth and reduce their tax liability2.
Customers have been taking advantage of price rises by selling both bullion bars and DigiGold back to The Royal Mint in large quantities via its BuyBack service, with revenues growing by 86% and 91% respectively in the third quarter year-on-year.
Commenting on the data, Stuart O’Reilly, Market Insights Manager at The Royal Mint said: “Gold prices have had multiple tailwinds in recent months. We have seen interest rates start to reverse course both sides of the Atlantic. Economic uncertainty and heightened geopolitical risk is leading to competition for safe haven assets. This is driving broadly positive market sentiment, fuelling both demand for precious metals, and activity from those looking to realise capital gains.
“Beneath the surface, the type of assets investors prefer is changing. While gold and silver can help investors strengthen and diversify their portfolio, our record quarter for bullion coin sales reflects the renewed focus on tax efficient investing. Our data suggests that investors are increasingly keen to protect their future investment gains, favouring CGT-exempt investments such as bullion coins over products that are subject to CGT. It’s also interesting to see more investors actively using The Royal Mint’s Buy Back Service, reflecting a proactive approach to closely monitoring the market and making strategic portfolio adjustments.
“With the UK budget approaching and uncertainty surrounding the US election, we may see further shifts in investor behaviour.”