Core Viewpoint - The significant drop in gold and silver prices is attributed to profit-taking by investors and a cooling geopolitical situation, with gold experiencing its largest single-day decline in over five years [1][2][3]. Price Movements - On the 21st, international spot gold prices fell by approximately 5.3% to $4,123.85 per ounce, with an intraday drop of 6.3%, marking the largest decline in over a decade [1]. - By the 22nd, gold futures were reported at $4,034.9 per ounce, down 1.81%, while London spot gold was at $4,020.44, down 2.5% [1]. - Silver futures also saw a decline, dropping over 7% on the same day [1]. Market Trends - Since the beginning of the year, international spot gold prices have increased by over 50%, while silver prices have risen nearly 70% [1]. - Analysts suggest that the previous surge in precious metals was driven by geopolitical tensions, leading to a rush for safe-haven assets, and that a calming market sentiment could lead to further price corrections [1][3]. Historical Context - Historical data indicates that when gold prices deviate more than 24% from the 200-day moving average, a correction of approximately 18% can occur over a period of 3 to 6 months [4]. - The recent rise in gold prices from around $3,300 to over $4,000 per ounce was influenced by geopolitical changes, global economic uncertainty, and central bank gold purchases [6]. Market Reactions - The volatility in gold prices has shocked many sellers in the market, with reports of significant price drops affecting sales [7][9]. - Despite the price adjustments, consumer interest remains, although many are adopting a wait-and-see approach, hoping for further declines before purchasing [11][13]. - The drop in gold prices has also led to a slowdown in the active gold recycling market, with a reported decrease in customer visits by over one-third [18].

Group 1 - The Royal Mint reported record online sales of gold, silver, and platinum bars during the first quarter of the 2025-2026 fiscal year, specifically from April to June [1][3] - Gold prices in GBP reached five new historical highs, peaking over £2500 in April, leading to unprecedented participation from UK investors [3] - Despite a 17% decrease compared to the record fourth quarter, sales revenue for online bullion coins (gold, silver, and platinum) was still strong, up 115% year-on-year [3] Group 2 - Silver prices surpassed £27 per ounce in June for the first time since 2011, with silver sales increasing by 51% year-on-year [3] - Platinum sales surged by 188% compared to the previous year, indicating strong demand for precious metals [3] - The number of customers selling precious metals back to the Royal Mint reached a record high, with the value of sold coins increasing by 75% quarter-on-quarter and 55% year-on-year [3] Group 3 - A notable transaction involved a customer who purchased gold bars in October 2024 and sold them in June, realizing a tax-free profit of £70,000 [4] - The Royal Mint's products are classified as capital gains tax-exempt investments, reflecting a significant evolution in UK precious metal investment [5] - Investors are increasingly reallocating their portfolios towards silver and platinum, with activity in these metals rising alongside gold, indicating a growing awareness of their value [5]