Owning a gold coin is more than just a financial investment. It symbolises significant personal achievement or serves as a valuable family heirloom. Beyond its historical or sentimental value, a gold coin represents financial security due to its enduring worth. Proper storage of Krugerrands, medallions, and numismatics is crucial for maintaining their value and ensuring their safety until sold.

The World Gold Council reports that retail investment demand for gold bars and coins jumped significantly in recent quarters, driven by global inflation and geopolitical concerns. The rise in inflation and the weakening of local currencies in many regions have amplified gold's appeal as a safe haven, further fueling this trend. The theft of gold coins has seen fluctuations, with notable increases in certain regions due to economic factors like inflation and the cost of living crisis. “ While it is generally recommended to store valuable items such as Krugerrands in bank safety deposit boxes or private vault facilities, some insurers do offer coverage under the house contents section of a policy, subject to specific conditions,” says Chris Vermeulen, a Director at Boutique Insurance Brokers.

Industry experts urge consumers to check the specific conditions required for insurance coverage under the house contents section of a policy and the details about secure storage. For example, it is standard that Krugerrands be kept in a safe that is securely mounted on the premises. This ensures that they are adequately protected against theft. Industry norms also dictate a current valuation certificate. This document is crucial for both the insurer and the insured to agree on the value of the covered items. Vermeulen adds, “ For enhanced protection, especially when the Krugerrands are taken off the premises, it is advisable to opt for wider cover under the All Risk section of the policy. This would provide coverage against a broader range of risks, including loss or damage outside the insured property.”

 In regions like Turkey and the Middle East, gold coin demand has surged due to runaway inflation, currency devaluation, and economic instability. The corollary of this is the increased risk of theft. Consumers in South Africa are not immune from this global pattern. DIY at-home storage ideas- like storing gold and silver coins in a fish tank or burying them in the garden is foolish. “ We advise using a bank’s safe deposit box or a storage facility like SafeGold that provides secure and insured storage options. Remember, once you lose your gold, you have no recourse,” comments Rael Demby, CEO of SafeGold, a division of The South African Gold Coin Exchange & The Scoin Shop.

When storing your gold, several important considerations exist, such as security, ownership, accessibility, and contamination. With a state-of-the-art safe deposit facility, your Krugerrands, medallions, and numismatics are stored with top-notch security, confidentiality, and discretion. Each item is individually audited and controlled, ensuring it is not mixed with others. When choosing a storage facility, consider accessibility for easy withdrawal, inspection, and return of your gold. Ensure the facility offers physical and technological protection against contamination.

Vermeulen concludes, “Our recommendation for Krugerrand owners is to contact their brokers and insurance companies. This ensures they receive personalised advice tailored to their specific needs and circumstances and guarantees that their valuable assets are fully protected under the most suitable insurance policy.”