In 2023, The Royal Mint witnessed a 7% year-on-year surge in customers engaging in precious metals investments, marking a record number of participants.
The UK’s official maker of British coins attributed this growth primarily to a “flight to safety” strategy adopted by global investors amid volatile financial markets. The appeal of more affordable investment options, particularly fractional coins and bars, along with the digital platform DigiGold, attracted 77% of customers.
The Royal Mint’s Buy Back Scheme experienced a substantial 46% increase in purchasing bullion from investors in 2023 compared to the previous year. The trend towards smaller-sized gold coins and bars, known as ‘fractional’ products, was pronounced, constituting 77% of purchases. Popular choices included the gold Sovereign, 1g gold bar, and 1/10oz gold Britannia coin.
The Royal Mint remains committed to providing accessible investment choices, offering physical gold investments starting from £75 and a minimum investment of £25 through its digital platform, DigiGold. The Royal Mint highlighted that the popularity of the gold sovereign coin and the silver Britannia underscores its success in the bullion market.
Andrew Dickey, director of precious metals, The Royal Mint, commented: “We have continued the development of our smaller, fractional products allowing entry-level investment right up to our six-figure investment options. This has allowed more investors to purchase gold with us. More customers made gold investments last year than during the lockdown investing ‘boom’ in 2020, highlighting the continued appeal of the asset class.”
In 2023, The Royal Mint observed a record 19% year-on-year surge in investors selling back their gold investments to the company. The payouts for customers selling bullion saw a substantial 46% increase compared to 2022, indicating that many investors likely earned significant profits on their investments, the Mint stated.
Dickey added: “Many people don’t realise that in most instances, the profits investors make selling UK gold, silver or platinum coins are exempt from Capital Gains Tax.”
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