Coins Investment

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adam1234

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So I'm in the process of investing in coins(Kruger and Mandela), have already purchased a 1/4 ounce Kruger last night.

Do you guys think the Mandela coins are worth it? what does a grading of MS66 sell for and how much can you buy them for? Found a deal where i can get one MS66 for R399, worth it?

also predictions of the coins worth in say a few months to a year

thanks
 
adam1234 said:
So I'm in the process of investing in coins(Kruger and Mandela), have already purchased a 1/4 ounce Kruger last night.

Do you guys think the Mandela coins are worth it? what does a grading of MS66 sell for and how much can you buy them for? Found a deal where i can get one MS66 for R399, worth it?

also predictions of the coins worth in say a few months to a year

thanks
Click to expand...

PM MKFrost about this. IIRC he was bitten badly..
 
1-ounce Krugerrand = R14,700 (approx). 1-ounce Mandela coin = R25,000+. The former is an investment. The latter is not.

A Krugerrand's value will always remain the spot price of an ounce of gold (or applicable 1/4, 1/2 value) minus R200-R1100 (buyer dependent) whereas a Mandela coin will be worth what speculators are willing to pay for it. It is worth R0 if you cannot sell it even after 50 years.
The only reason a Mandela coin of the same purity and wight of a Krugerrand is worth more currently is because its price has been artificially inflated by the overuse of the term "rarity"
 
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It depends which Mandela gold coins you are referring to.
There are the R5 coins, then you also get the medallions (come in different sizes)
 
I wouldn't ever buy gold as an investment, at least not while the Fed and others will do anything to prevent gold from being remonetised.

However, as a hedge against a serious decline in paper, gold has a role. It's a hedge against calamity.
 
If you're going to invest in gold coins you better hope someone flies another plane into a building in America so you can get a return.
 
I bought a 1/10 KrugerRand a few weeks ago for R2.3k. I'm in the market for a 1/4 coin and later in the year a 1/2 and 1 ounce coins.

For me, gold coins and bars are not investments at all, they are currency hedges and wealth preservers.
 
To my understanding :

When those Mandela coins were originally minted, a certain portion are put by SARB into a blue plastic container like below (I could only find a picture of the Inauguration, but they did the same for the 90th birthday coins)

1318971_131029192555_BOB86a.jpg

People bought these ungraded blue proof and send them to a rating agency (ie NGC), who crack it open and grade the coin on quality. They then give it a rating (MS65, 66, 67 etc) and repackage and send it back the owner in a new plastic case

929572_140611222924_IMG_1345.jpg

The higher grade, the more value ... MS66 are like R300 or so and MS69 are like R300,000 or so. Once graded though, the price isn't really going to change and your R300.00 is not going to increase.

But ...for those blue plastic proof the owner doesn't know what grade he'll get, so collectors pay for that and hope it comes back with a MS69 grade and they'll have something worth R300,000 .... It's gambling for them.

I sold one years back for R1,800.00 before I knew why they were popular. If you have that and hold on, that'll gain value ... but maybe R3,000 or so.

EDIT : There are other grades that I have no idea what they are , what they cost or why they could be worth it - but the idea is the same : once graded, these aren't going to change in value
 
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Sly21C said:
I bought a 1/10 KrugerRand a few weeks ago for R2.3k. I'm in the market for a 1/4 coin and later in the year a 1/2 and 1 ounce coins.

For me, gold coins and bars are not investments at all, they are currency hedges and wealth preservers.
Click to expand...

+1

Just watch out, the smaller Krugers are more expensive normally for their weighting, than the full size. So 10 x 1/10s will cost more than 1 full Kruger, but then again you have to sell the full Kruger even though you don't want to if you decide to sell it, while you can just sell one or two of the smaller ones and keep the rest and sell them when you want too (hope I made sense).
 
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I'm not a fan of gold or coins as an investment. Unlike shares or a property, it doesn't earn anything, instead you own it and pay to insure it. Then when you want to sell it's another challenge. I would think that the chances you could sell for what you bought a coin for are actually going to be very slim. The sales people are good, but the market just isn't where they lead you to believe it to be. If you really do want to own gold, buy the new gold ETF.

BUT unless you really have some inside knowledge as to what the gold market will do, you're most likely not going to out think the traders.
 
supersunbird said:
+1

Just watch out, the smaller Krugers are more expensive normally for their weighting, than the full size. So 10 x 1/10s will cost more than 1 full Kruger, but then again you have to sell the full Kruger even though you don't want to if you decide to sell it, while you can just sell one or two of the smaller ones and keep the rest and sell them when you want too (hope I made sense).
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+1

You make perfect sense. This is the current prices of the KrugerRands from the Scoin Shop.
1/10 ounce = R2460
1/4 ounce = R5700
1/2 ounce = R10550
1 ounce = R20800

So, if I were to purchase ten 1/10 ounce gold KrugerRands (added up they make 1 ounce) I'd pay R24600. That's a R3800 more than a full 1 ounce KrugerRand.

Like you said, a part of me does want to pay the R3800 premium of owning multiple 1/10 coins since they are smaller and would be easier to sell. I'll do that in future though, for now I'm going for a 1/4 ounce until I can afford a 1 ounce (hopefully if I get a bonus).
 
Sly21C said:
+1

You make perfect sense. This is the current prices of the KrugerRands from the Scoin Shop.
1/10 ounce = R2460
1/4 ounce = R5700
1/2 ounce = R10550
1 ounce = R20800

So, if I were to purchase ten 1/10 ounce gold KrugerRands (added up they make 1 ounce) I'd pay R24600. That's a R3800 more than a full 1 ounce KrugerRand.

Like you said, a part of me does want to pay the R3800 premium of owning multiple 1/10 coins since they are smaller and would be easier to sell. I'll do that in future though, for now I'm going for a 1/4 ounce until I can afford a 1 ounce (hopefully if I get a bonus).
Click to expand...

I was pondering it a bit today...

Maybe build up to 5 x 1/10s, 2 x 1/4s and 1 x 1/2s and then full Krugers only for a bit.
 
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