No, not your old Toyota Tazz, your vintage Nokia 3310 or your regular waiter at the golf club. The answer is an honest, reliable metal; a real reliable currency? Another South African classic, the gold Krugerrand.
Once again, the gold price is back in the news, hovering near the key level of $1,900 an ounce, supported by a weaker dollar. So, Is the gold price on its way to $2,000 again and should you be getting excited about Krugerrands?
Rael Demby, CEO of The South African Gold Coin Exchange & The Scoin Shop, says
"It looks like the gold price is on the way up, and I will not be surprised if it reaches over $2,000 in the next six months. We are always excited about the potential of gold and believe the yellow metal has plenty going for it".
As gold bugs for over 45 years, we believe in the gold standard. More than ever, wealth preservation is a focus. We are seeing a huge interest in Krugerrands because:
Gold is the least volatile and the most stable of the majority of commodities. So if it does dip, it doesn't plummet, and it doesn't stay there very long.
Gold is a hedge against higher inflation, especially now with many central banks considering robust stimulus measures. Gold coins withstand periods of crisis, fluctuation and inflation.
Gold is real money. Demby adds, "We are very passionate about gold. Especially if you understand what real money is – not just paper currency – but gold and silver." Gold is a proven store of value. History shows that when the Krugerrand started in 1967, they were just R27 a coin. Today, it's a thousand times that price. That's because gold has kept its value. Gold is a currency hedge. With the Rand's depreciation, acquiring real money by buying gold and silver is one strategy South Africans have. Gold is a physical commodity. It is tangible. You can feel the weight of a coin. So that's very reassuring to clients.
The Krugerrand is well-established as the global standard for collectable and gold coins. Since the first batch was issued in 1967, over 50 million ounces of Krugerrand coins have been sold globally – by far the most of any other bullion coin regarding volume. The most extensively collected and traded bullion coin globally and the combined aesthetic appeal, history, and design make it difficult to find a more attractive gold coin choice. Demby adds that "the unsettled time of the pandemic has seen existing clients trading coins and realising profits as well as upgrading collections with more exclusive numismatics. However, we can't ignore that many people are battling. Having a nest egg of Krugerrands has been a lifeline for savvy savers and demonstrates the necessity of saving. We are also seeing new clients dipping into gold - some starting with 1/10th Krugerrands; others buying substantial amounts."