Gold News

Royal Mint doubles output on increased demand for Buying Gold

The Royal Mint in the UK was forced to double its gold production in the second quarter of 2009 as demand for the yellow metal continues to grow.

According to a new report by Bloomberg today (August 4th), output was increased from 8,030 ounces to 16,910 ounces on a year-on-year basis during the three-month period.

Furthermore, the news provider - which obtained the information under the Freedom of Information Act - revealed that production in the first half rose 86 percent to 45,406 ounces.

Investors traditionally Buy Gold as a store of wealth in tough economic times and as a hedge against possible inflation, with both strategies finding favor so far this year.

"There's still interest in gold as a safe-haven asset," said Stephen Briggs, an analyst at RBS Global Banking and Markets in London.

"This whole sector will capture people who don't have access to the futures market."

Last week, the World Gold Council claimed that China could surpass India as the world's leading consumer of gold by the end of 2009.

According to the marketing organization, demand for Buying Gold in China during the first quarter of the year was six times higher than in India, where levels fell by 83 percent on a year-on-year basis.

"India's gold consumption is reportedly dropping this year due to the financial crisis," said Hou Huimin, deputy head of the China Gold Association, in a Bloomberg interview.

"China's consumption is growing and this year's will surely be more than last year's."

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