This week, the Royal Mint reported a surge in the number of investors in precious metals products in 2023, marking a 7% year-on-year (YoY) increase.
This substantial growth is attributed to, firstly, investors adopting a “flight to safety” strategy for their portfolios amidst macroeconomic pressure. Secondly, a large segment of customers (77%) has been drawn to the new investment choices, such as fractional coins and bars and The Royal Mint’s digital platform, DigiGold.
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This growth underscores the company’s commitment to making gold accessible across various price points, allowing investments starting at £75.
The ever-so-popular fractional products in particular have “allowed more investors to purchase gold with us, with options to suit all needs,” said Andrew Dickey, the Royal Mint’s Director of Precious Metals.
“It is interesting to note that more customers made gold investments last year than during the lockdown investing boom’ in 2020, highlighting the continued appeal of the asset class,” he highlighted.
The gold Sovereign coin and the silver Britannia maintained their popularity in 2023, with the latter being the flagship bullion product, leading the most popular product list.
Additionally, the Royal Mint witnessed a record number of investors selling their gold investments back to the business in 2023, with a 19% increase year over year. The Mint paid out 46% more than in 2022 to customers selling their bullion, indicating significant profits for many investors.
Stuart O’Reilly, Market Insights Analyst at The Royal Mint, anticipates a potential gain in momentum for precious metals in 2024 amid a cycle of central bank rate cuts.
“The potential for central bank rate cuts in 2024 is boosting the gold and precious metals markets, as the prospect of lower rates boosts demand for non-yielding assets,” O’Reilly stated.
Looking ahead, Andrew Dickey expressed excitement about the opportunities in global markets and the development of new products.
“We are increasingly excited by opportunities around our Gold for Pensions proposition and our gold ETC product on the London Stock Exchange, both of which have grown despite tougher conditions in these markets,” said Mr. Dickey.