Gold price sets record, Royal mint records unprecedentedly strong cash flow

Royal mint (the UK's legal authority responsible for producing circulating coins, commemorative coins and precious metal products such as gold, silver, platinum) recorded record inflows into gold, silver and platinum as investors seek safe havens.

Investment demand was the main driver behind gold's unprecedented rally in the third quarter, when the precious metal set a new record, surpassing $4,360/ounce.

While investors poured into gold ETFs at a record pace, they also showed strong demand for physical gold. This week, Royal mint said that bullion coins sales increased by 102% year-on-year and 6% year-on-year.

Royal mint did not release specific figures, but said that gold bar revenue increased by 5% quarter-on-quarter, maintaining a strong level since the beginning of the year. Meanwhile, demand for silver exploded, with coins growing 44% quarter-on-quarter and 83% year-on-year.

Royal mint also recorded solid growth in digital precious metals products. DigiGold's VAT-free cash flow reached a record investment level, with total cash flow increasing by 156% over the same period last year.

Both silver and platinum set an all-time high as investors shifted their strategy away from gold after the previous strong rally. Both metals continue to rise even after the end of the quarter," Royal mint said.

Stuart O'Reilly, market information director at Royal mint, said that geopolitical and economic uncertainty is prompting both new and experienced investors to seek tangible assets.

These are investors who understand the strategic role of the precious metal in their portfolio and know about the Capital Gains Tax exemption for UK bullion coins they chose this time to increase their holdings. In October, we saw a 70% increase in the number of buyers, with an average spending of double last October, he said.

Strong demand in the UK shows a remarkable differentiation between regions. According to data from the World Gold Council (WGC), demand for gold bars and gold bars in the US was the only region to record an annual decline in the third quarter. The WGC said demand fell to 7 tons - the lowest level since 2017-2019 before the pandemic.