The Royal Mint of Canada (hereinafter - the Mint) reports high demand for investment products made of gold and silver for the first quarter of this year. Some customers buy precious metals due to concerns about higher inflation, others - in order to diversify the portfolio and reduce risks.
The increase in Mint profits is due to an increase in sales of investment and exchange coins. In the 1st quarter of 2021, profit increased by 81%, or $26 million, compared with $6.5 million for the same period in 2020. The high performance for the first quarter is explained by the large volume of sales of investment products. Collectible and investment products, affinity and storage services for precious metal products, as well as shares of the Canadian Gold Reserves gold exchange fund and the Canadian Silver Reserves silver counterpart were popular among customers.
Frank Katerina, a spokesman for the Mint, noted the following: "Excellent performance during the reporting period is the result of the professionalism of employees and the quality of their work. The stable demand for our goods and services last year continues to delight us in 2021. During the coronavirus pandemic, the provision of basic services to the extractive and financial sectors was sustained. The Mint focused on measures to protect the health of its employees and ensure their safety in the workplace. "
In the first quarter of this year, the volume of revenue from operations with precious metals amounted to $852 million, having increased almost 2 times compared to the same figure in 2020 - $465.2 million. Sales of gold investment products increased by more than 65% to 328.5 thousand ounces (1 quarter of 2020 - 198.1 thousand ounces). The beginning of this year was no less successful for silver products. In just 4 months, 9.9 million ounces of coins and bullion from gray metal were sold, which is 52% more than in the 1st quarter of 2020 - 6.6 million ounces.
Another popular form of investment in precious metals was the shares of gold and silver exchange funds listed on the Toronto Stock Exchange. Thanks to the support of the Government of Canada, the right to monthly repurchase shares in the form of gold or silver coins and ingots of a high sample of "four nines" is provided.