Spain Prepares To Issue Gold Coins, Not Interested In Crypto Or CBDC?

Spain plans to issue gold coins. (Photo; Doc. Unsplash)

JAKARTA - The market demand for gold investment instruments is increasing in Spain. To meet market needs for the instrument, the Spanish government is preparing to spend new gold bullion coins.

In February, the Spanish government approved a budget of 40 million euros for the issuance of a series of new gold coins. Most of the budget will be used by the National Coin Factory to buy high-quality and pure gold to be minted into coins.

According to reports, the budget approved for this task is very high, indicating the high demand for institutions for these products when issued.

Analysts suspect this kind of product, which is usually marketed to national and international collectors, may have attracted more traditional investor interest due to the measurable risks and low volatility associated with gold and coins themselves.

This is the expenditure of the third gold bullion coin prepared by the National Coin Factory in Spain, making it the largest coin factory by the amount of gold to be purchased. Two previous expenses were made in 2021 and 2022, with a total of 12,000 and 15,000 coins, respectively.

The budget approved for the first two expenses did not reach 10 million euros (nearly 10.7 million US dollars or equivalent to Rp164.5 billion). The coins were sold directly by the National Coin Factory at a consistent price. The coin price depends on the price of gold at the time of purchase, and the cost of making coins imposed by the National Coin Factory is 10 percent.

The increase in demand for gold-based investment instruments is not just a local phenomenon in Spain. According to the World Gold Council, a market research organization, demand for precious metals peaked 11 years in 2022.

Although most of this volume was contributed by purchases by the central bank, the institution also reported that investment demand for gold increased by 10 percent, reaching 1,107 tonnes as reported by Bitcoin.com News.

This increase shows that gold remains one of the investment instruments in demand, especially amid current market uncertainty. This reminds investors of the importance of having a diverse portfolio and balancing risks with safer and more stable investments.

In the face of market uncertainty, it appears that the Spanish government has decided not to issue crypto coins as a new investment instrument. This is related to the concerns of the Spanish government over the volatility and special arrangements for crypto coins that are not yet clear. Alternatively, the Spanish government has issued gold coins as a more measurable and secure investment option.

The Spanish government believes that the demand for gold coins is quite high, especially from collectors and investors looking for measurable risk instruments and low volatility. By issuing large gold coins, Spain hopes to strengthen its position as the world's largest gold coin producer.