The Spanish government has approved the resources for a new issue of gold bullion coins, which will be used to satisfy a greater estimated demand for these instruments. The Fábrica Nacional de Moneda de España will purchase 40 million euros of high-quality gold pieces for this lot, a significantly higher amount of gold than the two previously issued series.
The National Mint of Spain prepares the issuance of gold bullion coins
Spain is preparing the issuance of a new gold bullion coin to meet market demand for such instruments. In February, the government of Spain approved a budget of 40 million euros (almost 43 million dollars) for the issuance of a new batch of gold coins. Most of the budget will be allocated by the National Currency Factory to the purchase of high purity and quality gold for the minting of these coins.
According to reports, the amount approved for this task is unusually high, something that suggests the demand that the institution estimates the products will have when they are issued. Analysts speculate that this type of product, traditionally marketed to national and international collectors, may have attracted interest from more traditional investors due to the measured risks and low volatility associated with gold and coins themselves.
Gold demand sees a boost in Spain
This is the third issuance of gold bullion coins that the National Currency Factory in Spain is preparing to carry out, profiling itself as the largest due to the amount of gold that will be purchased. The other two batches were issued in the years 2021 and 2022, with a number of 12,000 and 15,000 minted units, respectively.
Comparatively, the budget approved for these first two issues did not reach 10 million euros (almost 10.7 million dollars). The coins, which are sold directly by the National Currency Factory, have a constant price. The price depends on the price of gold at the time of purchase, and the mintage rate charged by the Fábrica Nacional de Moneda, which is 10%.
The increase in demand for gold-based investment instruments is not just a local phenomenon. According to the World Gold Council, a market insight organization, demand for the precious metal hit an 11-year high in 2022. While most of this volume was attributed to increased purchases by central banks , the institution also reported that the investment demand for gold increased by 10%, reaching 1,107 tons.
What do you think of the recently approved budget to mint gold bullion coins in Spain? Tell us in the comment section below.
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