Half of Royal Mint’s Gold Holdings Now Comprised of Recycled Gold
The Royal Mint’s Responsibly Sourced Physical Gold ETC (LSE: RMAU) recently announced that 50% of its gold holdings are now made up of 100% recycled gold. This achievement comes two years after the fund’s launch and is part of its efforts to improve Environmental Social Governance (ESG) standing. The partnership with The Royal Mint allows for close control over the supply chain, ensuring that the percentage of recycled gold steadily increases.
Reducing the Carbon Footprint of Gold
Gold mining is known to be an energy-intensive process that can contribute to significant carbon dioxide emissions. However, recycled gold has a carbon footprint that is more than 90% smaller than mined gold. The ability to infinitely recycle gold without degradation in quality provides investors with access to gold while reducing the emissions footprint of their portfolios.
Gold’s Investment Case in 2024
Despite the challenges faced in 2023, gold is expected to benefit from interest rate cuts by the Federal Reserve in 2024. The decreased opportunity cost of gold due to rate cuts makes it relatively more attractive to investors. Additionally, the geopolitical situation, which appears tense, provides a safe haven for investors seeking security. Gold’s role in a diversified portfolio remains unchanged, and its investment case remains strong.
Growing Demand for ‘Greener’ Gold
The demand for environmentally sustainable and socially responsible gold is expected to grow. The Royal Mint’s use of recycled gold in RMAU offers investors a way to align their physical gold exposure with sustainability and ESG requirements. By choosing certified recycled gold, investors can support the environment without sacrificing their financial goals. This trend is evident in other industries as well, with jewelry brand Pandora and tech giant Apple committing to using only recycled silver and gold for their products.