Royal Mint warns of delivery delays as Londoners rush for silver

London’s demand for precious metals has pushed the Royal Mint into overdrive.

A rush of orders from retail investors has prompted a ramp-up in output, but the 1,100-year-old institution is warning of possible delays in silver deliveries as it races to replenish its reserves.

A global surge in demand for precious metals has boosted silver prices by more than 80% in London’s wholesale market this year, with a fresh wave of orders from banks and other institutional buyers culminating in a historic squeeze this week. Inventories in London’s vaults are critically low, and fresh stock is being flown in from as far as New York.

Buyers have been flooding into London’s street-level bullion outlets too, with voracious demand for small bars and coins prompting the Royal Mint to run its presses harder. Still, the institution is warning buyers of possible delays in silver deliveries.

The retail rush in London and other bullion hubs is driving up global physical demand, giving an extra boost to the gold and silver rally even with prices at record highs. The Royal Mint has struck additional gold coins and is working to replenish silver, though some customers may still face slightly longer delivery times, according to a Royal Mint spokesperson.

London’s institutional silver market — the epicenter of the global bullion trade — has been squeezed this week, pushing prices to unprecedented levels and raising concerns about liquidity. At the retail level, demand for physical precious metals has been “exceptional” in recent weeks, both in the UK and internationally, said Royal Mint spokesperson Carly O’Donnell.

Rising prices have driven investors to secure gold, silver and platinum, she said, with particular interest in Britannia and Sovereign coins, which are exempt from capital gains tax.

With the Royal Mint racing to meet demand, bullion dealers across London are feeling the pinch on inventory — and the streets of Hatton Garden are buzzing as a result. Dealers are stepping up security as queues spill outside, while customers jostle to buy and sell in the heart of Hatton Garden, the city’s jewelry quarter.

“You’ve got this perfect storm at the moment,” said Emma Siebenborn, who runs Hatton Garden Metals.

She and her sister, Zoe Lyons, who come from a long line of jewelers, have swapped heels for trainers to keep up. Their shop is a blur of activity as people crowd the counters with gold bracelets, rings and chains to sell.

One long-time client who bought £20,000 worth of coins a few years ago has now made a £19,000 profit. Their mother likened the moment to a silver rush she experienced decades ago. She told her daughters to relish it for as long as it lasts.

“Every market doesn’t just go up. That’s not how the world works,” Lyons said. “Not all markets go to heaven. But whereabouts are we on that journey? Are we halfway there? Are we in heaven?”

(By S’thembile Cele)