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business news | Mint credits COVID gold rush and David Bowie with returning profits | Economic news

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The Royal Mint has revealed how a surge in demand for investment in precious metals has helped it generate a return to annual profits, with the coronavirus crisis causing prices to soar.

The public currency, based outside Cardiff, reported a pre-tax profit of £ 12.4million in the year through March 31, compared with losses of £ 0.2million in the during the previous 12 months.

Revenue rose 85% to just under £ 1.1bn.

Picture:
This ten kilogram gold “masterpiece” was presented in April this year to mark the Queen’s Beasts collection of the Royal Mint.

The parts maker for the UK and over 30 other countries around the world has also credited sales of historic and exclusive parts ‘Masterpiece’ coins, including a 9.5 kg gold coin to mark the Queen’s 95th birthday.

The company achieved record international sales, particularly in Asia and the United States, for the Music Legends segment of its popular culture celebratory and commemorative coin series in honor of Sir Elton John and the late David Bowie.

A Bowie piece was even exploded in space to huge publicity in December 2020 – emulating the artist’s famous Major Tom character, who appears in the lyrics of three of his songs.

Bowie commemorative coin launches into orbit
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The Bowie commemorative coin honoring Space Oddity launched into orbit on December 7, 2020

The Royal Mint crucially said sales of gold and silver doubled in the 12-month period, helped by a 430% increase in the number of millennials flocking to its online platform DigiGold to take advantage of soaring commodity prices.

The global gold price – a closely watched barometer of investor sentiment – reach record levels during the COVID-19[female[feminine crisis as economies went into hibernation to protect public health, with prices exceeding $ 2,000 an ounce last August.

It has become one of the best performing assets in 2020.

The costs of silver have reached levels not seen since 2013.

The Mint said it had attracted 25,000 new precious metals investment clients.

One of the downsides of the pandemic has been a drop in demand for new parts around the world given the bottlenecks and consumers’ reliance on online shopping.

It was announced in September 2020 that he no longer produce new 2p and £ 2 coins for the UK because there was enough of it in circulation to last at least the next decade.

The company said 200 employees made 1.9 million medical visors for the NHS during the lockdown at The Royal Mint Experience
Picture:
The company said 200 employees made 1.9 million medical visors for the NHS during the lockdown at The Royal Mint Experience

Graham Love, president of the 1,100-year-old company, said: “Despite the strong headwinds of the past year, the team has achieved an exceptional result – achieving record financial performance, protecting employees and manufacturing medical visors for the NHS.

“The pandemic has accelerated the diversification of the Mint, and the strategies already underway in the consumer division have allowed it to thrive and offset declines in currency activity.”



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