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Physical gold squeezed further; Royal Canadian Mint shuts down production for two weeks

Kitco News

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(Kitco News) - The physical gold and silver market just became a little tighter in the near-term as one major mint is shutting down operations for the next two weeks.

In a note to clients, the Royal Canadian Mint (RCM) said that because of the spreading coronavirus, starting Friday it is closing its doors for the next two weeks. That means the mint will not be producing its Gold and Silver Maple Leaf bullion coins.

“While the supply of bullion coins is currently limited, we are fulfilling all the orders we can. We are also continuing to fully secure our facilities, operate the refinery and allow for the receipt and withdrawal of available products,” said Alex Reeves, senior manager, public affairs at the Canadian mint in an email to Kitco News.

“We are still providing liquidity to refinery and pool customers in the way of large cast bar products,” he added.

After the two week period the RCM said that it plans to resume modified production using a divided workforce approach.

“This will allow us to reduce the risk to our staff and maintain critical services,” the mint said.

The shutdown comes as firms are reporting growing demand for physical metal as investors continue to worry about the impact the global pandemic will have on the world’s economy.

Last week, the U.S. Mint announced that it sold out of American Eagle Silver Eagle bullion coins. It said that demand for silver coins has jumped 300% compared to sales in February.

The Royal Canadian Mint’s Gold Maple Leaf, with a purity of 99.999%, is one of the most popular investment coins in the world. Earlier this month, the RCM announced the production of a 10-kilogram Gold Maple Leaf coin. Only 10 coins were created, and five have been sold already.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.