The Royal Mint has doubled its production of gold coins from a year ago in response to increased demand.

The mint is responsible for making the nation's coins, and this includes the 2009 22-carat Gold Proof Sovereign, weighing 7.99g (0.26oz) and costing £299.

Production has climbed from 16,910oz from 8,030oz according to government figures.

Gold has become of interest as the risk of inflation, especially with governments using or considering quantitative easing, means investors are looking for something safe to place their money in, even if the increase in value is not especially promising.

Despite this, gold is still trading at 7% less than it was at an all time high in March 2008 of around £611 per ounce, but holdings of gold backed exchange products rose to records in the second quarter of 2009.

"There's still interest in gold as a safe-haven asset," Stephen Briggs, an analyst at RBS Global Banking and Markets in London told Bloomberg News, "This whole sector will capture people who don't have access to the futures market."

By comparison, silver production fell 60% from a year ago from 81575oz to 32,630oz.

 

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