London rushes for silver: Royal Mint warns of delivery delays

Surge in precious metal purchases in the British capital: record demand for bars and coins pushes prices sky-high and depletes supplies.

A full-blown silver rush has erupted in London. Demand for precious metals has reached extraordinary levels, forcing the Royal Mint to ramp up production of coins and bullion. But the institution — with over 1,100 years of history — has issued a warning: silver deliveries may be delayed.

The price of silver has jumped by more than 80% this year on London’s wholesale market, driven by both institutional investors and thousands of private buyers. Vault stockpiles in the city have hit historic lows, to the point where new shipments are being imported even from New York.

Specialty shops in central London — particularly in Hatton Garden, the city’s historic jewellery district — are being swarmed. Lines form outside boutiques, with customers either selling their jewellery or searching for tax-free investment coins like Britannias and Sovereigns, which are exempt from capital gains tax.

“Demand is exceptional, both in the UK and abroad,” explained Royal Mint spokesperson Carly O’Donnell. The Mint is also increasing production of gold coins, another metal in high demand amid current economic uncertainty.

Meanwhile, traders and small investors are trying to seize the moment. One customer who bought coins years ago for £20,000 recently made a £19,000 profit. “Every market has its ups and downs,” notes Zoe Lyons of Hatton Garden Metals. “Not everyone goes to heaven. But perhaps, for silver, we’re almost there.”