UK gold sales rose sharply in 2020

by Jonathan Adams
UK gold

Overall sales of gold made by the Royal Mint over the final two months of the year rose by 510% compared to the same period in 2019

Sales of physical gold rose sharply in 2020 according to data from the UK’s Royal Mint. The 1100-year-old government-owned business, which makes more than 3.0 billion coins per year for the UK and overseas governments.

The coin maker saw demand for gold coins and bars rise substantially over the course of last year, and what’s even more interesting is that much of that demand came from a very specific demographic.

The Royal Mint Data shows that demand from customers aged between 22 and 37 years old jumped by 37%. Whilst sales of 1 and 5-gram gold bars increased by 53% year over year, in both November and December 2020.

The data suggest that millennial investors are concerned about the possible return of inflation and an erosion of the purchasing power of paper or fiat currencies that is often associated with it. A trend that might be of interest to the marketing departments with London’s FX and margin trading businesses.

Overall sales of gold made by the Royal Mint over the final two months of the year rose by a whopping 510% when compared to the same period in 2019.

Though people were buying physical gold, not everyone wanted to take delivery and the Royal mint saw an increasing take-up of digital gold purchases by buyers who utilised the mints Digigold storage and custody facility.

The mint introduced the mini gold bars as gifts that could be given at festivals and their introduction seems to have caught the public imagination.

The Royal Mint’s divisional director of precious metals Andrew Dickey said that: Gold continued to shine in the last quarter of 2020 as people looked to precious metals for safe-haven investments, but also for savvy Christmas gifts.

This article is for information purposes only.
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