(Kitco News) - After a months-long correction that pushed precious metals into bear-market territory, investment demand for bullion is starting to recover, with particularly strong growth in digital silver, according to the latest sales figures from the British Royal Mint.
In a report published Wednesday, the Royal Mint said it saw steady interest in gold and silver during the second quarter. However, demand for its digital products increased 30% compared with the second quarter of 2025.
“Investments in Digital Gold rose by 14% and Digital Silver by 162% compared with the same period in 2025-26,” the mint said.
Although silver’s selloff has been more severe than gold’s, the mint said the smaller precious metals market continues to attract retail investors.
“Physical silver delivered the strongest growth across the business, with the value of silver bullion purchased by investors increasing 85% year-on-year,” the Royal Mint said.
Since early July, silver prices have held support around $55 an ounce but have been unable to sustain gains above $60 an ounce. Spot silver last traded at $57.61 an ounce, up 1% on the day. However, prices remain down nearly 53% from their January highs above $120 an ounce.
Meanwhile, gold prices have settled into a trading range around $4,000 an ounce. Spot gold last traded at $4,039.20 an ounce, up 0.20% on the day. Gold prices remain down more than 28% from the highs reached at the start of the year.
Gold is currently trading at £3,000.40 an ounce against the British pound. The Royal Mint said it saw buying activity pick up as prices fell below £3,000 an ounce earlier this month.
“The weight of gold purchased on The Royal Mint's website was 29% above the quarter's daily average, liquidations fell by 29%, and investors bought five times more gold than they sold in a single day,” the mint said.
With prices appearing to find a floor, sales data suggest retail investors are beginning to wade back into the precious metals market.
“After an extraordinary period for precious metals, it's natural that many investors chose to pause and wait for a more attractive entry point, and that's exactly what we saw for much of the quarter,” said Stuart O'Reilly, Private Wealth Consultant at The Royal Mint. “What's particularly encouraging is how quickly investors responded when prices softened. As gold moved below £3,000 per ounce, customers increased their buying almost immediately, reinforcing our view that many continue to see precious metals as a long-term strategic allocation rather than a short-term trade.”
Despite the renewed interest, gold prices continue to struggle as the ongoing energy crisis keeps oil prices elevated, fueling inflation pressures and forcing central banks to maintain a tighter monetary policy stance.
However, O'Reilly said investors are beginning to look beyond these short-term headwinds and focus instead on the long-term bullish fundamentals.
“While interest rate expectations have created some short-term pressure on gold prices, the longer-term investment case remains compelling,” he said.
“Central bank buying, geopolitical uncertainty, fiscal pressures and the need for portfolio diversification continue to provide strong structural support for precious metals, and we're beginning to see early signs that investors are returning to the market as those themes reassert themselves.”
