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Across the globe, gold appears to be painting the town yellow – and it’s not just with investors. As per reports from the World Gold Council, last year witnessed the demand for physical gold soar like never before, recording a whopping 4,741 tonnes – a high unmatched since 2011. Leading the buyer’s brigade? Our world’s central banks, which amassed 417 tonnes of gold in just the last quarter.
A Historic Leap in Gold Purchasing by Central Banks
To really appreciate just how significant this uptick is, consider this – the last time we saw central banks investing to such an extent in physical gold was way back in 1967 when an easy $100 would have fetched you an ounce of this prized asset. Fast forward to today, and that golden ounce will lighten your wallet to the tune of approximately $1,830.
As Andrew Dickey, the director of Precious Metals Investment at the Royal Mint, insightfuly explains, “Any big shifts among central banks and governments can greatly influence the price of metals – it always makes for interesting times in the precious metals industry.”
UK Witnesses Major Shift Towards Investing in Physical Precious Metals
There’s been a remarkable paradigm shift in the UK since the outbreak of Covid, with a bumper crop of small-scale retail investors opting to sell gold and silver assets. The change in mindset among retail buyers was not just stark, but also swift, with more investors open to buying physical gold and silver. The evidence? Look no further than the Mint. Their new customer statistics have jumped a mind-blowing 202% year-on-year from 2019 to 2020.
Increasing Demand for Precious Metals Post Crypto Crash
The aftermath of last year’s crypto crash saw a dramatic rise in investor zeal for precious metal; a telling sign suggesting investors were offloading their digital assets like bitcoin in favor of tangible, physical gold.
Historically, the UK has always been slightly slow on the uptake when it comes to owning physical gold. However, new openings in the gold and silver markets are paving the way for change.
Lower Prices: A Golden Opportunity for Novice Investors
Shaking things up, the Mint has launched a range of smaller bars and coins at prices much lower than the standard one-ounce coins and larger gold bars, making it more accessible for budding investors. And for those digitally inclined, they’ve also got their DigiGold offering.