The Spanish government has approved funds to issue new gold coins. The gold coins will be directed to meet the higher estimated demand for these commodities. The Spanish National Coin Mint will purchase 40 million euros of high quality gold coins for this batch, which is a significantly higher quantity of gold coins than the two previous series issued.
Spain National Coin Factory prepares to issue gold bullion coins
Spain is preparing to issuenew gold coins to meet market demand for such a productIn February, the Spanish government approved a budget of 40 million euros (about $43 million) for the new gold coin issue. The bulk of the budget will be used to purchase high-purity, high-quality gold for the National Coin Factory to mint these coins.
According to press reports, the amount approved is exceptionally high, which suggests that the agency is anticipating demand for the issuance of this product. Analysts speculate that the low risk and low volatility associated with gold and the coins themselves may have sparked interest from more traditional investors in this type of instrument, which has traditionally been marketed to collectors at home and abroad.
Demand for gold increased in Spain
This is the third issue of bullion coins that Spain’s national coin mint is preparing to run, and profiles to be the largest according to the amount of gold being purchased. The other two batches were issued in 2021 and 2022, with 12,000 and 15,000 coins minted respectively.
Comparatively, the budget approved for these two first issues did not reach the 10 million euro (about $10.7 million) mark. The coins, sold directly by the National Coin Factory, have a constant price. The price depends on the price of gold at the time of purchase and the minting fee (10%) taken by the National Coin Factory.
The growing demand for gold-based investment products is not just a local phenomenon. According to the World Gold Council, a market insight organization, demand for the precious metal in 2022 reached an 11-year high. While most of this volume is due to increased purchases by central banks, the agency also reported a 10% increase in investment demand for gold, reaching 1,107 tons.
What do you think about the recently approved budget to mint gold bullion coins in Spain? Let us know in the comments section below.
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