Excerpt: The recent surge in the gold price has led to a huge increase in demand for Krugerrands in South Africa.

After starting the year at $1,994 per ounce, gold has soared to above $2,700 per ounce as of October 2024. This increase of over 30% looks set to be the biggest annual gold price increase in 14 years.

Given global economic tensions like the Russia-Ukraine war, the Middle-East war, and the US national elections, gold’s rise can partially be attributed to an increased appetite for a safe haven investment opportunity.

However, there are other factors impacting the gold price, too – such as strong demand for gold in China.

The People’s Bank of China has acquired 225 tonnes of gold in 2024 – the largest annual increase in gold ownership in its history.

Additionally, many central banks have relaxed their monetary policies which has led to a lower cost of holding assets like gold.

Demand in South Africa

In South Africa, the surge in the price of gold has resulted in a big increase in demand for Krugerrands – one of the world’s most iconic gold coins.

“Krugerrands are highly liquid in the South African market, making them a preferred choice among seasoned investors and collectors alike,” said Sebastian Pillay, Head of Share Investing at FNB Wealth and Investment, on BusinessTech.

“[They] are considered legal tender in South Africa, but their real value lies in their gold content.”

The increased appeal of gold as a safe-haven asset in South Africa is reiterated by Rael Demby, CEO of The South African Gold Coin Exchange and the Scoin Shop.

“We are seeing a significant demand increase for Krugerrands and other gold coins,” said Demby.

“The trend reflects a growing recognition among South Africans of the need to hedge against currency volatility and inflation.”

Short-term vs long-term

Demby went on to emphasize that gold is much more than a commodity – it is a store of value that transcends economic cycles.

While the meteoric rise of gold in 2024 has been accelerated by short-term and medium-term global events, the long-term investment opportunity is equally valuable.

Investing in shares and bonds is not only betting on short-term growth or decline – it comes with the risk that the company you invest in, or financial organisation you invest with, can collapse altogether.

In contrast, gold will never cease to exist as a store of value – making it the ultimate safe haven asset.

"Gold has always been a hedge against inflation and economic turmoil,” said Demby.

“Given the current global signs, it's not just a safety net anymore - it's a necessity."

Gold and silver

To mitigate short-term market fluctuations, investors are encouraged to always have a percentage of their portfolio in gold. It is also advisable to diversify you precious metal portfolio with silver.

The value of these precious metals generally does not correlate with assets like stocks and bonds, making them critical for diversifying your investment portfolio.

By holding both silver and gold, you further diversify your portfolio by pitting the fluctuations of the two metals against each other.

Scoin Shop is the best place to buy Krugerrands, other gold coins, and silver coins in South Africa.

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The LBMA (London Bullion Market Association) is an international trade association representing the London gold and silver Bullion market with a global client base. This includes most gold-holding central banks, private sector investors, mining companies, producers, refiners, and fabricators. By advancing standards and developing market solutions, the LBMA aims to ensure the highest leadership, integrity, and transparency levels for the global precious metals industry.

The LBMA/LPPM Global Precious Metals Conference was held in Miami, USA and ended Tuesday, October 15 2024. Delegates to this annual gathering predicted on Tuesday that the price of Gold is expected to rise to $2 941 a troy ounce over the next 12 months. Spot gold prices are up 29% so far this year, heading for the biggest annual gain in 14 years, amid the start of US Federal Reserve interest rate cuts and geopolitical tensions. The spot price hit a record from this week with a new all-time high above $2,700.

The South African market is reacting to these global economic trends. Rael Demby, CEO of The South African Gold Coin Exchange & The Scoin Shop, echoed these sentiments, noting that the recent spike in gold prices highlights the increasing appeal of Gold as a safe-haven asset. "We are seeing a significant demand increase for Krugerrands and other gold coins. The trend reflects a growing recognition among South Africans of the need to hedge against currency volatility and inflation," Demby commented.

Although some commentators remain sceptical, citing the possibility of short-term fluctuations, the long-term appeal of Gold as a safe-haven asset persists. Demby advises that portfolios are well diversified, with Gold and silver forming a significant part of the asset mix to guard against potential economic upheavals. As the world navigates these uncertain financial waters, Gold stands out as a time-tested asset that has retained its value through various economic cycles, making it a vital consideration for investors looking to safeguard their wealth.

Demby concludes, "Gold has always been a hedge against inflation and economic turmoil. Given the global signs, it's not just a safety net anymore; it's a necessity."

Watch the interview with CNBC AFRICA here

In the diverse and intricate world of numismatics, collectors come in all shapes and sizes, each with their own goals and motivations. Among these passionate enthusiasts, one type of collector stands out: the completist. A completist in numismatics strives to acquire every coin within a specific series, set, or category, leaving no stone unturned until their collection is complete, as the term suggests.

The completist approach characterises a relentless pursuit of perfection. It’s not enough for these collectors to own a few coins from a series; the goal is to obtain every variation, mint mark, and date within that series. This often involves tracking down the rarest and most elusive pieces, some of which may only surface at auctions or in private collections.

A deep appreciation for coinage's historical, artistic, and technical aspects often drives a completist's journey. Each coin tells a story, and to a completist, having every coin in a series is like completing a puzzle that, when assembled, provides a full picture of a particular era or theme in numismatics.

The path of a completist is not for the faint of heart. It requires patience, dedication, and often significant financial resources. Some coins within a series may be incredibly rare or costly, presenting a challenge to even the most determined collectors. Additionally, completists must be well-versed in the nuances of their chosen series, including understanding the differences in coin grades, identifying potential counterfeits, and staying informed about market trends.

For example, a completist aiming to collect every coin in the South African Krugerrand series would need to acquire pieces from each year of issue, including every fraction and variation, such as the highly coveted 1967 one-ounce Krugerrand. The first year of mintage, the 1967 Krugerrand, is particularly rare and sought after, given its historical significance as the world’s first modern gold bullion coin. Completing such a set can take years, and searching for the final pieces can be thrilling and frustrating.

As a beginner Numismaticist, you might start with a significant characteristic, collecting all those first and further expanding the collection as time progresses. These ‘significant characteristics’ may be considered categories to sort your collection. For example, ‘Error Coins’ such as with the 1892 S/S Ponde, ‘Mint Marked Coins’ such as the 50th Anniversary of the Krugerrand or ‘Numismatic Series’ such as the SA Mint Natura Catalogue,

According to the American Numismatic Association (ANA), there are “Ten Simple Rules” for Successful Coin Collecting, highlighted below:

1. Education

2. Specialisation

3. Patience

4. Connections

5. Thinking Like a Collector

6. Connoisseurship

7. Grading

8. Long Term Thinking

9. Quality over Quantity

10. Buying the Best with Affordability

A completist's sense of accomplishment upon completing a set is unparalleled. The completed collection is not just a display of wealth or status but a testament to the collector's dedication, knowledge, and passion for numismatics. Each coin in the collection holds a place in the overall narrative, and together, they form a cohesive and historically significant ensemble.

Moreover, a completed collection often holds significant monetary and cultural value. The rarity and completeness of these collections can command impressive prices, especially if they include particularly scarce or high-grade coins.

The impact of a completist extends beyond their personal collection. By assembling and preserving complete sets of coins, these collectors contribute to the broader understanding and appreciation of numismatic history. Their collections can serve as valuable resources for researchers and enthusiasts, offering insights into the coinage of specific periods and regions.

Ultimately, the completist's pursuit celebrates numismatics in its purest form. It reflects a deep commitment to preserving history and a desire to capture the full scope of a particular coin series. The journey may be long and challenging for those who choose this path, but the tangible and intangible rewards make it a fulfilling endeavour.

Whether you are a seasoned numismatist or a newcomer to the field, the example set by completists inspires. They remind us of the enduring allure of coin collecting and the satisfaction of achieving a complete collection.

Written by Valerina Ramjewan - The Scoin Shop Gateway.

Diwali, also known as the Festival of Lights, holds immense cultural and spiritual significance for millions of people around the world. Amidst the vibrant festivities and joyous celebrations, one tradition stands out as a symbol of prosperity and blessings: the gifting of Diwali gold. In this article, we’ll explore the tradition of Diwali gold, its cultural significance, and the enduring allure of these precious gifts.

The Spirit of Diwali

Diwali, celebrated with great zeal and enthusiasm, marks the triumph of light over darkness and good over evil. It is a time for family gatherings, feasting, and exchanging gifts as a symbol of love, gratitude, and goodwill. At the heart of Diwali lies the belief in prosperity and abundance, making it an auspicious occasion for investment and financial planning.

Symbolism and Significance

Gold has always held a special place in Indian culture, revered for its purity, beauty, and enduring value. Gifting gold during Diwali is considered auspicious and signifies the giver’s best wishes for the recipient’s prosperity and well-being. Gold bars, in particular, symbolise financial stability, wealth accumulation, and long-term prosperity, making them highly coveted gifts during Diwali celebrations.

One of the most cherished traditions of Diwali is the gifting of gold bars, symbolising wealth, prosperity,and blessings. During Diwali, families exchange gold bars as tokens of good fortune and prosperity, believing that it will bring prosperity and success in the coming year. This tradition dates back centuries and has been passed down through generations, embodying the values of tradition, heritage, and cultural pride.

According to scripture, Lakshmi has links to material and spiritual wealth. Even today, many believe the goddess bestows abundance and prosperity in the form of gold, so it is not surprising that many gold coins feature an image of the goddess.

Gold is also believed to have anti-inflammatory properties, improve energy levels, improve skin health, improve mental health, and improve circulation.

Gold is a beautiful and valuable metal that has been treasured for centuries for many various reasons. 

During Diwali, it is a symbol of all of the above. Most of all, it is a symbol of eternal light.