It could be a case of “if you build it, they will come.” In this particular instance, it’s the United Kingdom’s Royal Mint, whose online trading platform is bringing in more business in the form of young retail traders.
“The Mint, which is wholly owned by the Treasury, said young investors were attracted to its new digital platform for gold investment,” a BBC News article said. “The investments are backed by gold stored in The Royal Mint’s vaults.”
This is good news for Royal Mint, which is banking off higher revenue due to heightened trading activity and new accounts.
“It reported pre-tax profits of £12.4m in the last financial year, up from a £200,000 loss the previous year,” the article added.
Other companies are taking notice and offering their own digital platforms.
“A host of companies are now offering gold investments for digitally-savvy young investors,” the article added further. “The interest from do-it-yourself young investors, putting their money into investments ranging from cryptocurrencies to environmental assets, prompted the City watchdog to research the risks they were taking.”
A Changing Market
Gold investing was once the playground of investors with treasure chests of capital to invest in gold. Not to mention the space needed to store physical gold if that was their intention.
Nowadays, gold investing via digital platforms has allowed new investors to take advantage of easier liquidity. With the ability to buy and sell holdings of gold without physically having to store it is attracting more investors than ever before.
In addition, the height of the pandemic last year accelerated interest in gold. The precious metal was a go-to safe-haven asset amid the stock market volatility.
According to the BBC News article, digital savings were a popular product among gold investing companies. As far as specific products go, it was gold coins that sparked some interest.
“As spending habits change, we set out to reinvent The Royal Mint and secure our long-term future as a British maker.
“By purposefully expanding into areas which complement our heritage, we have been able to attract thousands of customers to precious metals, showcase British craftsmanship and achieve record revenues. We might be 1,100 years old, but we are firmly focused on the future.”
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