From Bloomberg

Feb. 2 (Bloomberg) -- The U.K.’s Royal Mint, established in the 13th century, more than doubled gold-coin production last year as investors sought to diversify their assets and hedge against a weaker dollar and accelerating inflation.

Output rose to 125,469 ounces from 46,315 ounces a year before, according to data obtained by Bloomberg News under a Freedom of Information Act request. Gold averaged $974 (612 pounds) an ounce last year. Fourth-quarter production rose 54 percent to 25,078 ounces, the data show.

Sales of American Eagle gold coins by the U.S. Mint increased 66 percent last year to 1.43 million ounces, its Web site showed. The mint suspended production in November of some coins because of depleted inventories. London-based luxury department store Harrods Ltd. began selling gold bars and coins for the first time in October.

“People are obviously looking at physical gold more than paper,” Andy Davidson, an analyst at Numis Securities Ltd. in London, said by phone. “Coinage always seems to accelerate” in such conditions, he said.

“There’s concern about monetary debasement, which is a big driver for gold,” Davidson said. “People are worried about other assets devaluing.”