On 21 February the Fábrica Nacional de Moneda y Timbre (FNMT) received authorisation from the Council of Ministers to formalise the purchase of 40 million euros in gold. The intention is to mint investment coins and offer them as safe-haven assets against inflationary pressure and market volatility.

It is no secret that in front of an economic crisis, gold is a highly appreciated asset for investors. World gold demand rose 18% in 2022 to 4,741 tonnes, the highest in over a decade. Gold purchases by governments and central banks soared to a record 1,136 tonnes not seen in 55 years.

Given the current context of inflation, market volatility, bank failures, the low return that banks are offering on deposits, and the rising interest rates of the European Central Bank (ECB), it is not surprising that not only central banks but also more and more investors are diversifying their portfolios into tangible, low-risk securities such as gold.

Investment coins, also known as bullion coins, minted in precious metals, generally gold and silver, play a key role in this savings diversification. The numismatic value of a coin’s craftsmanship, design, historical significance, commemorative value and physical condition can drive demand from collectors and investors.

A new gold rush

The FNMT did not want to be left behind and in 2021 decided to start minting Spanish bullion coins, bringing to the market a whole series of special editions of gold coins, following in the tradition of other world mints such as the Royal Mint, South African Mint or the Münze Österreich.

The escalating demand for gold has also been reflected in the forecast quantities of gold coins to be minted by the FNMT. Whereas for the first two issues, the agreements concluded with the gold suppliers did not exceed 10 million euros, this time the Council of Ministers has authorised the purchase of 40 million euros worth of gold for the production of investment and collector coins.

This exponential increase in the procurement value responds to the volume of sales made previously and to the evolution of the gold market over the last two years, together with the current and short-term economic context. This fact seems to confirm that physical gold as a safe-haven asset par excellence, whether in bullion or coin format, has not only not gone out of fashion, but is more relevant than ever when it comes to protecting our savings.

Protecting savings with physical gold has been one of 11Onze’s main contributions to its community, and now the range of products is expanding. This is why, in the face of volatility, still high inflation and the growing crisis of confidence in the banking system, gold is once again strengthening its position as a safe-haven asset. Discover Gold Seed at Preciosos 11Onze.