British Royal Mint see second busiest day of 2021 as investors look for inflation hedges
(Kitco News) - Investment demand for paper gold remains lackluster as prices remain below $1,800 an ounce; however, physical demand for the precious metal remains strong as the British Royal Mint saw strong sales last week.
In an emailed comment to Kitco News, the British Royal Mint said that Nov. 30 was its second busiest day of the year with double the daily average number of transactions for its gold products.
The mint cannot give precise sales numbers but said its 10-ounce gold bar has been its most popular product.
"As the run-up to Christmas is traditionally a quieter time for investing, it's very positive to see that demand for gold has continued," said Karina Hicks, Head of Precious Metals Marketing at The Royal Mint, in a statement.
The mint's busiest day of 2021 was on May 14, as the gold price started a run back to $1,900 an ounce before it was hit with a wave of selling pressure during the summer.
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The mint noted that demand and volatility in the gold market has picked up as investors continue to react to rising inflation pressures and monetary policy.
According to many analysts, while central banks worldwide, including the Bank of England, look to raise interest rates in 2022, they are expected to be behind the inflation curve, which will keep real interest rates in negative territory.
Last month the U.K. government said its Consumer Price Index saw an annual rise of 4.2% in October, a sharp jump from September's 3.1% rise. Inflation in the U.K. is currently at its highest level in a decade.