In its latest precious metals update, revealing recent trends in global consumer precious metals investing, it said that in 2024, gold prices rose 28% in GBP (27% USD), while the price of silver was up 23% in GBP (22% USD).

This ongoing price momentum, driven in the fourth quarter by a combination of ongoing geopolitical uncertainty and falling interest rates, has fuelled demand for precious metals, with revenues from gold bullion sales at The Royal Mint – this includes coins, bars and digital gold – up 153% year-on-year.

Across 2024 as a whole, the total number of customers buying bullion from The Royal Mint’s website hit a record high, rising 9%, while the total volume of online bullion transactions was up 12% compared to 2023.

New data from The Royal Mint demonstrates a continuation of the trend of UK investors turning to CGT-exempt products, such as bullion coins, in growing numbers. Sales of bullion coins on The Royal Mint’s website surged to another record high in the fourth quarter, with revenues up 56% on the previous quarter, and up 197% when compared to the same period in 2023.

This has primarily been driven by a surge in gold bullion coin sales. Between October and December 2024, revenues from gold bullion coin sales rose 206% when compared to the same period in 2023. Across 2024 as a whole, revenues from the sale of gold bullion coins from The Royal Mint’s website rose 49%.

Alongside growing investor appetite for CGT-exempt products, a significant increase in sales of The Royal Mint’s VAT-free Digital Metal products also demonstrates the growing focus on tax-efficient investing. Revenues from sales of Digital Silver were up 51% in 2024. Looking specifically at the fourth quarter, revenues rose 848% year-on-year.

The data also shows an increase in sales of platinum, with the total weight of platinum sold between October and December 2024 up 117% on the previous quarter. Sales of The Royal Mint’s VAT-free Digital Platinum product also rose 194% year-on-year.

Stuart O’Reilly, market insights manager at The Royal Mint said: “A combination of economic uncertainty and geopolitical volatility have led gold prices to hit multiple all-time highs in 2024. At a time when interest rates are gradually subsiding, investors have been drawn in by the capital growth gold has delivered as an asset class, and the protections safe- haven assets provide.

“Tax efficiency has also driven investment decision making, with a second consecutive record quarter for sales of bullion coins from The Royal Mint website. The surge in demand for our VAT-free Digital Metal products also reinforces the idea that investors are adopting a proactive approach.”

Investors used a variety of methods to enter the precious metal market, with 77% using either the Mint’s digital platform, DigiGold, or purchasing fractional coins and bars. Simultaneously, the Mint’s buyback scheme increased its payout by 46% from 2022, resulting in the highest number on record.

The Mint credits the numbers to a “flight to safety” attitude from investors.

Stuart O’Reilly, market insights analyst at The Royal Mint said: “The potential for central bank rate cuts in 2024 is boosting the gold and precious metals market, as the prospect of lower rates boosts demand for non-yielding assets. Traders and investors are increasingly pricing in a Fed rate cut some time in 2024, which could accelerate the price of gold alongside a weakening of the US dollar.

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“The dual impact of this move could turbocharge gold beyond recent market highs, as recent geopolitical and economic uncertainty, alongside strong central bank gold buying, has kept precious metals markets elevated.”

While the Silver Britannica remained the most popular product, the Mint also saw interest in its ‘fractional’ products, which can include a £25 investment through DigiGold or investment of physical gold for around £75.

Andrew Dickey, The Royal Mint’s director of precious metals, said: ‘We’re able to offer investors competitive prices for their gold, silver or platinum bullion products, whether they bought them from The Royal Mint or not.

“We tend to see a mix of investors and inheritors selling gold coins, particularly Britannias, Sovereigns and Krugerrands. This service enables investors to realise a profit, and supplies The Royal Mint with metal it can re-sell or recycle.”

Invesco also saw an increase in the gold market, with an increase of 11.6% in the fourth quarter of 2023, ending December at a price of $2,063 per fine troy ounce. Invesco noted that while political uncertainty may drive prices, it has also been helped by buyback programmes by central banks.

This article was written for our sister title Portfolio Adviser 

It shows that there is a growing appetite for alternative investments among Brits with investors planning to increase their asset allocation by 11%.

With the motivation behind this being UK inflation outstripping high-street bank savings rates according to two thirds of respondents.

Due to the cost-of-living crisis, 68% of investors said they are on the hunt for better returns from their investments, as 38% who haven’t already consider investing in alternatives.

This is due to the belief that these types of investments will offer better returns in the long term than traditional stocks and shares.

The data showed that 21% of investors are set to hold gold in their portfolio by 2024, with The Royal Mint reporting a 26% uplift year-on-year in the volume of gold investments during 2022.

‘Pendulum has swung’

Andrew Dickey, director of precious metals at The Royal Mint, said: “As high street savings rates and returns on the stock market remain low the pendulum has swung towards investments with the potential to offer better returns.

“It is clear from the data that investors are becoming more pragmatic about their portfolios and turning towards what are traditionally viewed as ‘alternative investments’ in order to boost their portfolio during this period.

“At The Royal Mint, we’ve seen an uplift in gold and silver investments in the first half of the year as investors turn to alternative investments as a means to diversify their portfolio, beat inflation, and generate wealth in the long-term.

“Whilst the data shows that bitcoin is set to drop in its investment appeal over the next year, more are investing in gold and precious metals in order to benefit from the investment’s ‘safe haven’ status. It is clear that precious metals are becoming a more mainstream investment choice for UK investors, having delivered positive returns for investors in recent years.”