Lower gold prices lead to consumer demand • Gold a safe bet • Platinum growth around the world • Lady of the ring
Chris Howard, director of precious metals at the Royal Mint.
The Royal Mint’s Chris Howard analyses the gold market price and looks back at what the week has held for precious metals.
The World Gold Council reports hugely encouraging data this week. Lower gold prices have led to rising consumer demand, growing central bank reserves to their highest levels since 2015.
Plus, there’s been an increase in the use of the precious metal in technological applications such as smartphones and automotive vehicles.
Gold a safe bet
This data reflects what we’re seeing here at the Royal Mint across all markets with strong growth and demand for gold in Q3 – both in physical coins and bars to consumer investors.
We expect to see this move towards safe haven assets continue in light of falling stock markets, and ongoing volatility driven by geopolitical dynamics such as the US mid-term elections next week, political tension in Italy and, of course, Brexit.
Platinum growth around the world
Good news for platinum this week too.
Global production is reportedly headed for a return for growth in 2019. During the forecast period of 2018–2022, global production is projected to grow at a compound annual growth rate (CAGR) of 2.4%, to reach the sum total of 6.7 million ounces in 2022.
Central to such growth will be new operations across the globe in places such as Zimbabwe, South Africa and Canada.
Lady of the ring
We end this week with the remarkable discovery of a 500-year-old gold ring.
The sealed ring worth £10,000 was discovered by an amateur detectorist, having once belonged to a noble lady of the Skynner family of Oxfordshire.
Engraved with a detailed coat of arms containing the family crest, it is expected to go to auction next month.
What a plucky explorer!
For more information, please visit https://www.royalmint.com/invest/.