Gold has reached a 5 year high of $1400 an oz. The sentiment has changed towards gold as a store of value as the guns of war rattle again. Gold had a 20 year bull run from 1992 until 2012 when it moved from $225 an oz until it reached a high of $1925 when Grexit loomed. By 2012 all the pundits projected a $3000 per oz price.
Hundreds of billions of dollars was invested in gold looking for profits. While the smart money was selling gold many new entrants and latecomers were coming into the market for the first time not to buy it as a store on value, but as a vehicle to make money. But as all markets change and don’t go up forever and sellers came in and as supply was greater than demand. .....prices fell until they reached a low of $1100 an oz. ..... Since then gold has started to pick up again as prices don’t go down forever.
The world is in flux with both economic and political uncertainty and gold is once again coming back into fashion. While share markets have boomed for well over the past 12years, they can’t go up forever. The property market has also boomed but with more short term investors , speculators and many new properties coming on stream and with more vacancies it too has been rerated down.
The Scoin shop celebrates its 20th year and still is the only retail chain of coin shops in shopping malls in the world......making gold as an asset class accessible to all classes. From R10,000 to R10 million. Whether bullion, modern collectibles or numismatics. We have popularised ZAR coins and are the biggest dealer in numismatic coins. The Scoin Shop has been around since we opened our first store in Sandton City when gold was $280 / oz. As always it’s the early adopters who benefit the most.
The collectors and the real storers of wealth have no complaints and if anything many years of sleep full nights. The rand has crashed since 1994, the price of peace. Gold in Rands has gone up in the past 25 years, the cost of peace of mind. The speculators who got into gold as the wave broke in 2012 will be kicking themselves.