Surge in demand for gold drives Royal Mint to profit

The mint reported a pre-tax profit of £12.4m during the year to 31 March compared with losses of £0.2m over the previous 12 months

The Royal Mint has revealed that a surge in demand for investment in precious metals helped it deliver a return to annual profit as the pandemic prompted a surge in prices.

Based outside Cardiff, the government-owned mint reported a pre-tax profit of £12.4m during the year to 31 March compared with losses of £0.2m over the previous 12 months.

Revenue increased 85% to just short of £1.1bn.

The manufacturer of coins for the UK and more than 30 other nations also credited sales of historic coins and exclusive 'Masterwork' pieces, including a 9.5kg gold coin to mark the Queen's 95th birthday.

The Royal Mint said, crucially, that sales of gold and silver doubled over the 12-month period, aided by a 430% increase in millennials flocking to its online DigiGold platform to take advantage of a spike in commodity prices.

The global price of gold hit record levels during the pandemic as economies across the world shut down to protect public health, with prices passing $2,000 an ounce last August. Gold became one of the best-performing assets during 2020.

Silver costs hit their highest levels since 2013.

The mint said it attracted 25,000 new precious metal investment customers.

One downside of the pandemic has been a slump in demand for new coins globally as customers shifted to online purchases amid lockdowns measures.

It was announced in September 2020 that the mint would no longer produce new 2p and £2 coins for the UK as there were enough in circulation to last at least the next decade.

Graham Love, chairman of the 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.