Spain Approves Budget to Mint Gold Bullion Coins for Investors
The
government of Spain has approved the budget for the minting of gold bullion
coins to meet the growing demand for the instruments among investors. The
Spanish National Coin Factory is likely to purchase 40 million euros of high-quality gold for making the coins, which is estimated to be significantly larger than compared to the earlier two
series.
National Coin Factory Set to Issue Gold Bullion Coin
Spain
is preparing the
issuance of a new gold bullion coin to meet the market demand for such
instruments among investors. The government of Spain approved a budget of 40
million euros for the issuance of new gold coins in February. Most of the budget will be used by the
National Coin Factory to purchase high-quality gold to mint the coins.
According
to reports, the amount approved is rather high, hinting at the growing demand
estimates for the product upon issuance among potential investors. Market
analysts speculate that the product, traditionally marketed to national and
international collectors, might have awakened the interest of more traditional
investors due to the measured risks and low volatility associated with gold and
coins.
Gold Demand Boost in Spain
The
National Coin Factory in Spain is set for the third issuance of gold bullion
coins. The factory is likely to purchase the largest quantity of gold for
minting in the third coin series. Previously, 12,000 coins were
issued in 2021, and 15,000 coins were issued in 2022.
The
budget approved for the first and second issuances was less than 10 million
euros. The coins sold by the National Coin Factory maintain a consistent price.
The pricing is done based on the prevailing gold price at the time of the
purchase and the 10% coinage fee of the National Coin Factory.
The
expanding demand for gold-based investment instruments is a global phenomenon.
According to the World Gold Council, a market insights organization, the demand for the
precious yellow metal touched an 11-year high in 2022. While most of the volume
was attributed to purchases by central banks, the institution also reported
that investment demand for gold increased by 10%, reaching 1,107 tons.
What
is your take on the recently approved budget to mint gold bullion coins in
Spain? Please post your comments.
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