22.07.2021 – 11:41
Gold has excelled for new investors according to The Royal Mint which has recorded a fivefold increase in young people investing in the precious metal.
Mint, which is wholly owned by the Treasury, said new investors had been attracted by its new digital platform for investing in gold.
The investments are backed by gold stored in The Royal Mint safes.
Mint reported pre-tax profit of 12. 12.4 million in the last financial year, up from a loss of ,000 200,000 a year earlier.
A host of companies are now offering gold investments to new digital investors.
Interest from new investors, by investing their money in investments ranging from cryptocurrencies to environmental assets, has prompted the city observer to conduct research on the risks they were taking.
The Financial Conduct Authority (FCA) found these “self-directed” investors who traded themselves rather than seek financial advice, willing to “have an effort” to invest, especially in high-risk products, for “Challenge, competition and innovation”.
Gold is generally considered a safe investment and has been popular with investors globally in times of uncertainty such as pandemics and low interest rates on cash.
Mint said the new digital savings platforms attracted new customers to investing in the precious metals it had offered through other channels for years.
Anne Jessopp, Mint CEO, said: “As spending habits change, we decided to recreate the Royal Mint and secure our long-term future as a British manufacturer.
“By deliberately expanding into areas that complement our heritage, we have been able to attract thousands of clients in precious metals, showcase British handicrafts and achieve record incomes. “We may be 1,100 years old, but we are very focused on the future.”