Official maker of UK coins makes record profits as investors are turning to gold
In spite of the UK moving closer to becoming cashless, Royal Mint profits are up nearly £6 million compared to last year
Last updated 13th Oct 2022
The Royal Mint has made more than £1.2 billion in sales of precious metals as investors are turning to gold because of the instability of financial markets.
The Royal Mint is Britain's oldest company and the official maker of UK coins.
A record pre-tax profit of £18 million was reported by The Royal Mint in the year to March 31, up nearly £6 million from last year's £12.4 million and the company's largest profit since becoming a limited company in 2010.
As a result of its consumer-facing division, which includes rare coins and precious metal investment products, profits have offset losses in its currency division.
In recent years, the UK has moved closer to becoming a cashless society with fewer coins in circulation.
But The Royal Mint said that its evolution into a consumer brand has helped "safeguard" the business and its staff for the future.
In the latest financial year it saw record numbers of investors hedge their portfolios with physical precious metals including gold, silver and platinum coins and bars.
Gold is typically considered to be a safer investment as it offers long-term value especially during periods of high inflation and turbulent stock markets.
Precious metal accounted for around 86% of The Royal Mint's total revenue in the last year and almost half of its profits.
It also said that revenue in the US increased by 62%, driven up by demand for commemorative coins.
The Royal Mint has transformed at a rapid speed
Graham Love, chairman of The Royal Mint, said: "It is a rare privilege to see a business transform and an even rarer privilege to be part of a team that transforms at the scale and speed of The Royal Mint.
"We are building from a stronger financial base than ever - with a portfolio of established businesses alongside promising new ventures.
"We have unveiled a new five-year plan which will see us pioneer new ways to provide sustainable precious metals, champion British craftsmanship and grow the appeal and value of The Royal Mint for future generations."
The Royal Mint is making the coins bearing the effigy of King Charles III and people will begin to see new 50p coins in circulation from around December, it said last month.
It is also set to open a new factory in 2023 where it will recycle discarded mobile phones and laptops to recover precious metals from circuit boards.