Spain’s government has authorized funds for the production of a new series of gold bullion coins to meet the rising demand for these products. The Spanish National Coin Factory will acquire 40 million euros worth of top-quality gold pieces, which is a significantly larger amount of gold than the previous coin series.
Spanish National Coin Factory To Issue New Batch Of Gold Bullion Coins
To meet market demand for gold bullion coins, Spain is gearing up to release a new series of such coins. The Spanish government allocated a budget of 40 million euros (approximately $43 million) in February for this purpose, with the majority of funds set to be used by the National Coin Factory to procure high-purity gold to mint the coins.
The approval of a budget of 40 million euros for the new gold bullion coin series is seen as an indication of the high demand anticipated for these coins. Industry experts believe that traditional investors may show an interest in these products due to the low volatility and relatively safe nature of gold and coins. While these coins have typically been marketed to collectors, they are now attracting a broader range of investors.
Spain’s Gold Market Booms As Demand Surges
The National Coin Factory in Spain is ready to issue its third batch of gold bullion coins, which will be the largest in terms of the amount of gold that will be purchased. The remaining two batches were minted in 2021 and 2022, with a mintage of 12,000 and 15,000 units, respectively.
In contrast to the current budget of 40 million euros for the new gold coin series, the budget for the first two issuances did not exceed 10 million euros (approximately $10.7 million). These coins are sold directly by the National Coin Factory and are priced based on the current value of gold at the time of purchase and a coinage fee of 10% charged by the Factory. The price of these coins remains consistent.
The surge in demand for gold-backed investment products is not limited to Spain. The World Gold Council, a market research organization, has reported that global demand for the precious metal reached an 11-year high in 2022. While a significant portion of this demand was attributed to central bank purchases, the Council also noted a 10% increase in investment demand for gold, reaching a total of 1,107 tons.