Investor demand causes surge in gold production

The production of gold coins by the Royal Mint has more than quadrupled in recent months due to soaring demand for the precious metal.

New figures show that the output of gold coins rose to 32,736 ounces in the third quarter of the year, up from 7,500 ounces during the corresponding period of 2008.

Gold prices have risen by more than 30 per cent this year, with many investors viewing it as a safe haven amid ongoing economic uncertainty.

Christopher Wood, an analyst at investment group CLSA, told the Daily Telegraph: ’Gold remains the critical investment for owners of capital who want to protect their wealth and preserve their purchasing power.’

The precious metal reached an all-time high of $1,152.75 an ounce on Wednesday (November 18th).

As well as investors using it as a hedge against inflation, a growing number of central banks have also been buying gold.

Earlier this month, the Reserve Bank of India purchased 200 tonnes of gold from the International Monetary Fund at a price of $6.7 billion (£4.05 billion).
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