Figures released recently indicated that the British Royal Mint more than doubled its gold coin output during 2009, from 46,315 ounces in 2008, to 125,469.
The increase has been largely attributed to the need to keep up with demand as investors rushed to buy gold in the face of a weakened dollar. Generally speaking, the gold market is inversely proportional to the US dollar, so as the dollar weakens, gold strengthens and becomes a more attractive investment.
2009 was a particularly tremulous year for many global currencies and as people became concerned about the devaluing of both currencies and physical assets, investment in the precious metal grew. And while early concerns for the price of gold were prevalent as the dollar began a slow recovery, experts largely believe that investment will remain steady.
The recent global monetary instability is also largely credited with a growing diversity amongst the demographics making gold purchases. Online gold exchanges, such as Gold Made Simple have made investing much more accessible and far less elitist. This has, in turn, given those who might never have considered investing in gold before, the opportunity to do so quickly and easily.
While gold remains a much more stable alternative to paper currency, we shouldn't be surprised to find output both in the UK and globally continuing to rise.
