No, we are not talking about the peppermint sweet!
Since the price slump last year, physical gold demand has soared, with reports of mid-size bullion dealers accumulating over a 1000 orders a month. Although this hasn’t exactly shown up in the spot gold price, this only confirms what significant opportunities remain in gold and especially that of physical gold.
However, this is not just a “UK” phenomenon mints from all over the world have reported a massive demand in gold coins.
What is a mint?
A mint is a body which is permitted to manufacture or “mint” coins for purposes of currency.
Interestingly the historical presence of mints also follows the history of coins. The first coins were manufactured through hammering coinage which was time consuming resulting small production levels.
Modern facilities are minted in large numbers using a type of stamping process known as “coin dies”.
Due to the technological innovations the cost of production and face value now helps fund minting bodies.
Metallic money has been associated with representing wealth for thousands of years, however the structure of the metal was not always in coins but that of rings, ornaments and even weapons.
Metals are well represented to signal wealth due to their rarity and indestructability, the most popular metals for currency being gold, silver, platinum and copper.
Minting practices evolved with industrial knowledge and by the late 1780’s steam power had been introduced. Unfortunately this coincided with illegal counterfeit productions, and the Royal Mint – the main minting institution in the United Kingdom responded by shutting itself down.
The Royal Mint originated in 886 and in 1279 it had moved to the tower of London where it remained for the following 500 years and employed a “warden of the mint” who investigated cases of counterfeit coins.
As technology continued to advance it became possible to strike nearly 100 coins per minute and coins became standardised and by the time the power of electricity was harnessed the Royal Mint had to be moved to its own purpose built buildings for the rackety buildings it filled would not be big enough for the new machinery.
Despite these new buildings being bombed in WWII the royal mint continued to provide its service however, it was apparent that in order to be fully productive and meet its overseas orders the decision was taken to move to larger premises where the mint remains to. The new building is just ten miles outside of Cardiff.
The modern role of the Royal Mint remains principally to mint coins for the UK. However, it also manufacturers coins for overseas countries, produces collector coins and other memorabilia as well as producing military medals and civilian decorations.