Can somebody teach me what influences the Krugerrand price?

[smb3]

Was wondering if anybody can explain to me what pieces of information influences the Krugerrand price. Are there any reputable sources or general news topics that will let you make a decent judgment call?

Context: Bought Krugerrands at a bad time (Aug 2016 and Nov 2016 I think), so running at a crappy loss atm. Feel crappy when I think about it, but sometimes you just end up making mistakes which is OK! So trying to find and learn from my mistake now

 

[saturnz]

Was wondering if anybody can explain to me what pieces of information influences the Krugerrand price. Are there any reputable sources or general news topics that will let you make a decent judgment call?

Context: Bought Krugerrands at a bad time (Aug 2016 and Nov 2016 I think), so running at a crappy loss atm. Feel crappy when I think about it, but sometimes you just end up making mistakes which is OK! So trying to find and learn from my mistake now

its always a bad time to buy krugerrands, you always want to be purchasing something which at the very least generates an income of some sort

in the capitalist free market world, demand and supply affect price, and then you have to find out what determines demand and what determines supply and then it gets a bit complicated if you want to go into the maths of it

by the way the mistake you made is not the mistake you think it is

the major mistake you made was making a decision based on no research, and given that you made a decision based on no research, do you know how to do research?

this is more of a life skill than simply an issue of recovering a loss from krugerrands

 

[Muttley]

I'm not expert but here's my 2c:

Kruger Rands are considered to be long term investments- 10 years or more at least. Buy them and forget about them.
You'll notice that when markets dive, gold goes up as it's still considered a safe haven.

It's not like buying a rare item and then expecting to sell it at a premium due to low supply. If you go to the right place (like Scoin shop), you'll likely be offered the daily spot price (currently R16 141/oz). Some places will offer you significantly less.

Bear in mind that the price of gold is affected by the actual spot price in $ but also affected by R/$ exchange rate fluctuations as we live in SA.
If the Rand tanks, then it's good news for you, but if it strengthens then you may loose out.

If you purchased proof coins, they may be worth a few extra hundred ronds.

Lastly- don't keep them in an FNB Safety deposit box

 

[smb3]

its always a bad time to buy krugerrands, you always want to be purchasing something which at the very least generates an income of some sort

in the capitalist free market world, demand and supply affect price, and then you have to find out what determines demand and what determines supply and then it gets a bit complicated if you want to go into the maths of it

by the way the mistake you made is not the mistake you think it is

the major mistake you made was making a decision based on no research, and given that you made a decision based on no research, do you know how to do research?

this is more of a life skill than simply an issue of recovering a loss from krugerrands

I've been told something similar to this quite a few times actually. This just reaffirms it

I actually never thought about the view that krugerrands are "always bought at a bad time" and I get what you mean now. It's a useful way to think about things.

Unrelated to this, I hope your tenant problem gets sorted soon

 

[Thor]

Gold price.

Is gold a good investment? the answer is always no.

/Flame suit on

 

[rietrot]

I've been told something similar to this quite a few times actually. This just reaffirms it

I actually never thought about the view that krugerrands are "always bought at a bad time" and I get what you mean now. It's a useful way to think about things.

Unrelated to this, I hope your tenant problem gets sorted soon

That's wrong. Kruger rand can be a good investment and there is a right time to buy them. Its a great hedge against a weak rand and a declining economy.
You bought at a high point but in 10 years time they will still be worth double what they are now.

 

[saturnz]

That's wrong. Kruger rand can be a good investment and there is a right time to buy them. Its a great hedge against a weak rand and a declining economy.
You bought at a high point but in 10 years time they will still be worth double what they are now.

doubling in 10 years?

thats not very impressive growth on something that bears no income and has storage costs and risks

 

[Josh B]

Rather invest your money in good gold mining companies, that way you will get dividends as well as capital growth on your original investment amount. Also when the rand slides and or the gold price increases these shares normally also increase in value.

 

[supersunbird]

It's not an investment, it's a hedge...

 

[rietrot]

doubling in 10 years?

thats not very impressive growth on something that bears no income and has storage costs and risks

You don't have to store them with FNB the storage cost is completely up to you. Hide them under your bed if you want.
People buy gold when other investments become to risky, Its a hedge. It is about as low risk as it can get.

 

[saturnz]

You don't have to store them with FNB the storage cost is completely up to you. Hide them under your bed if you want.
People buy gold when other investments become to risky, Its a hedge. It is about as low risk as it can get.

gold is currently below its inflation adjusted high it reached in the early 80s

its not going to go up soon, and things have become significantly more risky than it was last year

what is your idea of "too risky"? are we there yet?

 

[rietrot]

gold is currently below its inflation adjusted high it reached in the early 80s

its not going to go up soon, and things have become significantly more risky than it was last year

what is your idea of "too risky"? are we there yet?

The 80's and the 2012 price might have been bubbles. I think the price is about fair now so it should slowly increase with inflation.
When things become to risky is completely subjective. If you look at the JSE all share index for example the economy is pretty flat since mid 2014 (with some ups and downs)so there is a lot of risk already. I would say to risky would be in a recession or just before a recession. So great times to buy gold would have been 2007-2010 and a great time to sell would have been 2012.
Now if only we could predict the future.