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Tuesday, 30th June 2009 (918 views)

Demand for gold, caused by the economic problems being seen around the world, has led to a significant increase in the production of coins made from the precious metal.

That is the observation made by Richard Giedroyc of World Coin News, writing for Numismaster.

He explained that investors "flock to gold" in times of such difficulty and production has needed to increase as dealers are struggling to keep pace with demand.

Mr Giedroyc cited Bloomberg figures - obtained under the Freedom of Information Act - that showed the British Royal Mint to have increased gold consumption by 75 per cent in the first quarter of 2009.

It is "no secret" that interest has been growing of late, he said, adding: "Ask anyone who buys or sells US gold coins, either bullion American Eagles or the circulation coinage that ended in 1933."

Meanwhile, Pradeep Unni of Richcomm Global Services has told Bloomberg that the Federal Reserve's decision to keep interest rates on hold is likely to prompt more people to turn to the precious metal.

 

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