Why Invest in Krugerrands?
Krugerrands are the easiest and cheapest way to invest directly in gold bullion. For centuries, gold has been the investment of choice, providing a safe haven and hedge against the loss of money, as well as providing a store of value during tough times.
Reasons to invest
For many centuries, gold has been the investment of choice. Gold provides a safe haven and hedge against the loss of money (inflation) as well as provides a store of value during tough times (wars, political and economic uncertainty).
Krugerrands are the easiest and cheapest way to invest directly in gold bullion. In South Africa, we as residents cannot invest in actual gold bars, and if we could, they would be VAT'able. There are no limits to the amount of Krugerrands you can own and there are currently no FICA restrictions and consideration requirements.
Gold as a store of value
In some countries at certain times, the need to own gold may be overwhelming. At other times, it may be less so. Although the value of gold may increase or decrease, over the past century alone millions of individuals in almost every country worldwide have benefited from owning gold at the right time.
Predicting the right time has not always been easy. For this reason, many people have held some gold as a form of insurance against the 'unexpected', or as a safe commodity to preserve their wealth. Therefore Krugerrands provide a great safe haven and a good store of value.
You don't need to be a rocket scientist
No special knowledge is needed when buying or selling Krugerrands. Since Krugerrands are directly linked to the rand/dollar exchange rate and the dollar gold price, which are published daily, you will always know what value your Krugerrand holds.
How soon do I breakeven?
With Krugerrands, your breakeven point on the price of the coin is when the price raises approximately 6-8%. Thereafter you make a profit, since the buy/sell spread is very small. If we had to compare this to collector's coins, diamonds, rare paintings or antique furniture, the price usually has to rise over 50% before you can think about the breakeven point. Therefore Krugerrands are an excellent investment, especially in a bull market (where we are now).
Converting your Krugerrands to cash
Krugerrands can be easily converted into cash through FNB Share Investing. We guarantee the buy-back of your coins (if you store them at Rand Refinery Ltd.) at any time. To sell your coins is as easy as buying them. All you need to do is login to Online Banking and click on the Shares/Gold tab and proceed to sell your coins.