Fewer coins to be made as Royal Mint plans to focus on commemorations and gold
THE Royal Mint has cut the number of coins it puts into circulation every year by nearly half in four years, as it is turning to gold bars and commemorative coins to make money instead.
According to its latest annual report the Mint issued 1.3 billion coins last year, around 45 per cent fewer than it issued in the year 2014-15 at 2.3billion.
The number of 1p, 2p and 5p coins being issued over the period all fell by more than half, while the number of pound coins issued trebled due to the introduction of the new 12-sided coin in 2017. The total number of coins in circulation rose from 28billion in 2011 to 30 billion in 2016-17, suggesting new-style coins are more durable.
With the Mint admitting it is to make fewer coins in the future, it is planning on minting more commemorative coins and making its bullion services more “millennial-friendly” to make money.
It is planning to expand its online gold and silver bullion trading shop by letting people buy and sell precious metal bars via a smartphone app.
Chris Howard, director of precious metals, told The Sunday Times: “We need to be relevant to young people who probably think we are a load of old dinosaurs. Gold has traditionally been an investment for cautious people, but we think younger investors have a different view of precious metals and we want to tap into that.”
It is also planning to sell thousands more commemorative coins, for royal and other events which are sold all over the world. In its latest annual report the Mint said it had “a sensational year” with profits up from £11million to £12.6million over the year. Its overall revenue increased by 40 per cent over the year to £506.4million, up from £360.6million. Earlier this year, the Queen ordered a batch of special Paddington Bear 50p coins to be made, to commemorate the cartoon character’s 60th birthday. The coin features the children’s favourite outside Buckingham Palace.
Roman coins are still regularly found in this country, often in hoards hidden and left behind when the empire collapsed. They bear the heads of various emperors because the right to strike coins has long been the preserve of the state.
British coins have the monarch’s head on the obverse while adornments on the reverse side have tended to be symbols of the realm. But cash is rapidly going out of fashion as people shop online or use mobile phones and cards for transactions.
For the Royal Mint this is an existential threat that requires innovative thinking to combat. It has reduced the number of coins it issues by almost a half in just four years. Commemorative coins, which were once struck only occasionally to mark an event of great national significance, are being churned out with mounting regularity in a bid to maintain custom. The latest celebrate Paddington Bear, an endearing figure but hardly one of historical moment.
While the use of coins falls, however, the value of Bank of England notes in circulation has been increasing. Millions still rely almost entirely on cash transactions and resistance to the pressure from banks and businesses to turn our economy into something conducted exclusively online or electronically is strong.
People still like to have some money in their pocket, not loaded on a card or phone. We should beware the efforts to produce a cashless society by stealth. But archaeologists of the future finding a hoard of early 21st century British coinage might wonder why we thought it fitting to commemorate a fictional bear with a taste for marmalade.