Royal Mint of Britain launched its own online trading service for gold coins

Sep 23, 2014 18:35 IST

The Royal Mint of Britain on 22 September 2014 launched its own online trading service for gold coins. The move is aimed to entice investors away from shares and into gold sovereigns.

In a move that would spark a new gold rush, the customers will be able to buy unlimited quantities of gold coins anywhere in the world directly from the Mint.

The gold will be stored in the Mint’s high-security vault and guarded by Ministry of Defence personnel. The initiative is designed to overcome some of the key objections to investing in physical gold, including worries about shipping, storage and finding a trustworthy broker.

Highlights of the online trading

• The online trading will allow a much more active role in what has become an expanding trade in gold for investment.
• The launch of the Mint’s new website will provide updated prices for gold and silver as per the current market values.
• The sovereign also has its weight and purity guaranteed to five decimal places by a 1971 Act of Parliament.
• Gold coins can be kept at the Mint’s vault, in return for an annual storage fee of 1 percent of the market value of the gold being held, plus VAT. Alternatively customers can take delivery of the coins through an insured postal service.

• When investors want to sell, the Mint will offer a buy-back service on gold coins stored in its vault, quoting a price pegged to current market prices.

Comment

The Mint has been producing coins for more than 1000 years. It has previously tended to sell gold coins in small quantities to collectors.

Gold is often seen as a defensive investment in times of stock market uncertainty.  In recent years, there have seen a rapid expansion in the number of online gold companies.

Is this article important for exams ? Yes32 People Agreed

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