COVID gold rush and David Bowie bring Royal Mint to profits

In the wake of a global pandemic, millennials are turning to digital investments with heavy metal.

A taxpayer-owned company has reported high demand for precious metals during the past year’s crisis. The happy news came from one such investment firm that provides digital savings offerings in limited and scarce goods like gold bars or platinum coins – an especially popular option among many young investors these days who value ease of use over tangible assets when they’re not sure if tomorrow will come as scheduled.

The Royal Mint has revealed how the coronavirus crisis contributed to a pre-tax profit for this year. The mint, which is government owned and based outside Cardiff, saw its revenue increase by £170 million (US$252m) over 12 months because of increased demand in metals like gold as investors sought refuge from geopolitical risks such as the virus outbreak that fuelled fear among many people about traveling abroad or going into public spaces where they could potentially be infected with MERS.

The surge in prices also helped offset losses on other fronts and led to a return back to annual profitability after two consecutive years of loss-making operations following heavy exposure during Europe’s sovereign debt crises earlier last decade when it sold off large portions of bullion reserves at near historic growth.

The United Kingdom’s mint, which manufactures coins for the UK and more than 30 other countries around the world, also credited sales of historic coinage- worthy items as well as exclusive “Masterwork” pieces. One example is a 9.5kg gold coin to commemorate Queen Elizabeth II’ 95th birthday this year; not only was it made with an exceptionally high level of craftsmanship but in collaboration with international artists from Denmark!

The company reported record international sales, particularly in Asia and the US for its Music Legends segment of popular culture series. The coins commemorate influential musicians such as Elton John and David Bowie who have left a lasting legacy on not only music but also pop culture.

One Bowie coin was blasted into space by a private company in December 2020. This stunt mirrored the Major Tom character, which appears on three of his songs and is often considered to be an alter-ego for David himself.

The Royal Mint says that gold and silver sales doubled over the 12-month period, aided by a 430% increase in millennial buyers on its online DigiGold platform to take advantage of an upswing in prices.

As the world entered a state of hibernation, more people than ever before rushed to buy gold. It was one of the best-performing assets during 2020 and hit record levels in August 2019 when it passed $2,000 an ounce.

The world’s mint has seen a surge in demand for silver, and this is the first time new coins have been made since 2013. The pandemic also contributed to decreased demand due to lockdowns that were instituted by most countries post-outbreak as well as lack of need for coin purchases because people are relying on online shopping instead.

Graham Love, chairman of the 1,100 year old company, said: “Despite the significant headwinds of the past year the team have delivered an outstanding result – achieving record financial performance, safeguarding employees and making medical visors for the NHS.”

“The pandemic accelerated the diversification of The Royal Mint, and the strategies already underway in the consumer division allowed it to flourish and offset declines in the currency business.”