Information on the safe custody of your Krugerrands and the fees associated with this
FAQs - Charges and safe custody of Krugerrand coins
How much does each Krugerrand cost?
The price of each Krugerrand depends the size that you purchase (1 oz, 1/2 oz, 1/4 oz, 1/10 oz). Each coin is quoted at a price provided by RMB and is influenced by the R/$ exchange rate and the gold price at that moment in the market.
Where will my Krugerrand be kept after I buy it, and is it safe?
Your Krugerrand's safety is our utmost priority. FNB Share Investing have a contract with RMB and Rand Refinery Ltd. to keep safe custody of your coin until you wish to sell it or take physical possession of it.
How much does it cost to keep my Krugerrand at Rand Refinery Ltd.?
A custody fee of 0.86% per annum is charged to keep your Krugerrand safely in the hands of Rand Refinery Ltd. This 0.86% is based on the value of your coin holdings and is calculated on a daily basis and charged monthly.
What is Rand Refinery Ltd.?
Krugerrands are minted by the South African Mint from gold coin blanks supplied by Rand Refinery Ltd. The South African Reserve Bank has authorised Rand Refinery Ltd., the world's largest single-site gold refining and smelting complex, as the sole entity to sell Krugerrands from source to primary distributors worldwide. Rand Refinery Ltd. is owned by leading South African gold mining companies.
If I already own Krugerrands, can I hand them over to FNB to keep at Rand Refinery Ltd.?
No, unfortunately not. Only Krugerrands that are purchased directly from FNB Share Investing can be kept at Rand Refinery Ltd.
How do I insure my Krugerrands?
FNB Share Investing gives you peace of mind by insuring your coins at a very competitive custody fee of 0.86% per annum, if you keep the coins at Rand Refinery Ltd. This custody fee includes the full cost of insurance. It is based on the value of your coin holdings and is calculated on a daily basis and charged monthly. This safe custody fee will be deducted off your Share Builder or Share Investor account balance every month.
Can I take physical ownership of my Krugerrands?
Yes you can. If you would like to keep your coins in your own possession, FNB Share investing can provide a personalised quote to deliver the coins from Rand Refinery Ltd. to your residence at a fee.
If I take physical ownership of my Krugerrands, where can I collect them from?
We will deliver them straight to your door! Rand Refinery Ltd. will not allow customers to collect coins directly from their premises, so Share Investing will deliver them safely to you at a fee anywhere in South Africa. To find out more about delivery, please call 0860 SHARES.
If I decide to take physical ownership of my Krugerrands, what happens to my portfolio?
Your Krugerrand holdings will no longer appear in your online portfolio should you decide to take physical ownership.
If I decide to take physical ownership of my Krugerrands, can I sell them through FNB Share Investing?
Unfortunately not. Once the Krugerrands are removed from your online portfolio, FNB Share Investing cannot buy back the coins.
What happens to the safe custody fee if I take physical ownership of my Krugerrands?
Should you take physical ownership of your Krugerrands, you would need to apply for additional safe custody or insurance on the coins for your own account.
What are the tax implications of investing in Krugerrands?
The tax implications are determined with respect to the intention to which the Krugerrand is held. If it is held for investment purposes, the proceeds would be seen as capital but if it is held with an intension to make a profit, the proceeds would be considered to be revenue.
It is the responsibility of each investor to ensure that the gains/losses are treated correctly as far as tax is concerned.
FNB Share Investing will issue you with a Statement of Gains and Losses in February each year for the period 01 March to 28/29 February.
Can I take physical ownership of my coins if I live outside of South Africa?
FNB Share Investing does not facilitate the export of Krugerrands due to the South African Reserve Bank Exchange Control legislation governing the export of coins. However, you can take delivery of your coins at any address within South Africa. FNB will deliver coins to a third party, provided the value of the coins does not exceed R50 000. For amounts exceeding R50 000, the account holder must be present to take delivery.
Exchange Control legislation also limits the number of coins that a non-resident client may export. This limit is set to 15 coins per transaction. However, you may approach the South African Reserve Bank to negotiate this restraint and the SARB will deal with requests on a case by case basis. For information relating to the export of Krugerrands, please contact the FNB Non-Residents Centre on 011 352 5025.