The government of Spain has approved the resources for a new issuance of gold bullion coins, which will be directed to satisfy a higher estimated demand for these instruments. The Spanish National Coin Factory will purchase 40 million euros in high-quality gold pieces for this batch, a significantly higher amount of gold compared to the two series issued before.
Spanish National Coin Factory Prepares Gold Bullion Coin Issuance
Spain is preparing the issuance of a new gold bullion coin to satisfy the demand of the market for such instruments. In February, the government of Spain approved a budget of 40 million euros (almost $43 million) for the issuance of a new batch of gold coins. Most of the budget will be used by the National Coin Factory to purchase high-purity and quality gold to mint these coins.
According to reports, the amount approved for this task is unusually high, something that hints at the demand the institution estimates the products will have when issued. Analysts speculate that this kind of product, traditionally marketed to national and international collectors, might have awakened the interest of more traditional investors due to the measured risks and low volatility associated with gold and the coins themselves.
Gold Demand Sees Boost in Spain
This is the third issuance of gold bullion coins that the National Coin Factory in Spain is preparing to execute, profiling itself as the largest one according to the quantity of gold that will be purchased. The other two batches were issued in the years 2021 and 2022, with a number of 12,000 and 15,000 units coined, respectively.
Comparatively, the budget approved for these two first issuances did not reach the 10-million-euros (almost $10.7 million dollars) mark. The coins, that are sold by the National Coin Factory directly, have a consistent price. The price depends on the price of the gold at the time of the purchase, and the coinage fee taken by the National Coin Factory, which is 10%.
The rise in the demand for gold-based investment instruments is not just a local phenomenon. According to the World Gold Council, a markets insights organization, the demand for the precious metal hit an 11-year high in 2022. While most of this volume was attributed to the rise in purchases by central banks, the institution also reported that investment demand for gold increased by 10%, reaching 1,107 tons.
What do you think about the recently approved budget to mint gold bullion coins in Spain? Tell us in the comment section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
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