Consumer demand for tax-free gold coins experienced a dramatic surge in the weeks leading up to the government's autumn budget, according to leading retailer and lender Ramsdens.
Extraordinary Demand for Tax-Advantaged Assets
Peter Kenyon, chief executive of Ramsdens, revealed that sales of gold coins in October were "double the norm", describing interest during the month as "extraordinarily high". He attributed part of this spike to the impending budget statement scheduled for late November, suggesting consumers were keen to capitalise on existing tax advantages.
Popular bullion coins like the Britannia and Sovereign are exempt from Capital Gains Tax (CGT) due to their status as legal British currency. Stuart O'Reilly, a private wealth consultant at The Royal Mint, confirmed that customer preference strongly favours these CGT-exempt coins over gold bars to maximise tax efficiency.
Record-Breaking Sales and Profits
The official maker of British coins, The Royal Mint, mirrored this trend, witnessing robust demand for its precious metal investment products. The organisation recorded its strongest single day of e-commerce trading on record on October 9, alongside its largest ever combined purchase of gold coins. Furthermore, the day after the autumn budget was published, revenue from bullion products skyrocketed by 79% compared to the same period the previous day.
Ramsdens' financial results, published on Wednesday 14 January 2026, showcased the direct benefit of this gold rush and the sustained high gold price. The firm reported a 43% jump in pre-tax profits, rising from £11.4 million to £16.2 million for the year ending 30 September 2025. Overall revenue increased by 22% to £116.8 million.
Its jewellery retail and pawnbroking divisions were key growth drivers, with gross profit climbing by 18% and 9% respectively. The company stated this performance was driven by the "continued benefit from the sustained high gold price." First-quarter results followed a similar pattern, with gross profit from purchasing precious metals specifically soaring by more than 50%.
Market Drivers and Digital Shift
While the pre-budget period provided a boost, Mr Kenyon noted that the primary driver has been increased public awareness of the soaring gold price. The precious metal, viewed as a safe-haven asset, has seen its price surge by approximately 70% over the past year. On Monday prior to the report, gold hit a record high of $4,600 (£3,415) per ounce.
This high price has also encouraged more people to sell unwanted jewellery, bolstering the pawnbroking side of Ramsdens' business. However, not all divisions prospered equally. The company's foreign currency exchange service faced headwinds, with gross profit falling 3% to £13.8 million as more customers migrated to online ordering and currency cards. This decline accelerated in the first quarter, with a 5% year-on-year drop.
Looking ahead to 2026, the Middlesbrough-based chain forecasts a pre-tax profit of around £18 million but cautions that rising employment costs may impact its business. Buoyed by its strong performance, Ramsdens plans to expand its physical presence, aiming to open between eight and 12 new stores in the coming year.
