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Royal Mint sees record bullion demand in 2022 as sales increase 25% for gold, 29% for silver

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Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

(Kitco News) - Despite lackluster investor demand for paper gold, 2022 proved to be a very strong year for bullion demand, with the British Royal Mint the latest to report record sales.

In an exclusive report for Kitco News, the Royal Mint said that gold bullion sales increased 25% in 2022 compared to 2021, which was also a record year. At the same time, silver demand increased 29% from the previous year.

The Royal Mint also noted an increase in new investors taking an interest in physical gold as the number of new customers increased by 5% last year, "despite rising interest rates and lackluster USD performance for most of the year."

On a month-by-month basis, the mint also noted that March was their busiest month for gold sales as geopolitical uncertainty caused by Russia's invasion of Ukraine increased safe-haven demand for the precious metal.

The mint said it also saw demand pick up in September and October as domestic political uncertainty rose with the nation seeing three Prime Ministers installed in three months.

Looking ahead to 2023, the Royal Mint said it is seeing a healthy start to the year as gold prices hold above $1,900 an ounce.

"Another 10% climb would see it reach its all-time high of US$2,057.15, as recorded by the London Bullion Market Association on 6 August 2020," said Andrew Dickey, The Royal Mint's Director of Precious Metals Investment.


This is why you will see high premiums on American Eagle silver coins in 2023

Dickey added that he expects bullion demand to remain robust throughout the new year as investors continue to protect themselves from the uncertainty and volatility of global markets.

"Looking forward to 2023, many financial experts are expecting this momentum to continue, which will promote a level of confidence in investors of precious metals following IMF warnings of a recession," he said. "Evidence shows that previous recessions have had an impact on the gold price increasing, with the metal historically deemed a 'safe haven.' Other factors affecting demand include a slowing of the cycle of interest rate hikes by central banks, their continued purchasing of vast quantities of gold and crypto disappointment."

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