Fnb krugerrands

Jet-Fighter7700

Jet-Fighter7700

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Hi all,

So I wanted to ask the better informed.

Fnb Krugerrand option? Worth anything?

As I decided to give it a bash, and I'm not 100% sure why they rejected it?

So first you have to open a share investor account, done, deposit R200 for the privilege.

Then you got to transfer cash to cover the cost of the coin, done,

Then apparently you just request to buy,
Done,

Problem for me was they simply rejected it, with no explanation, just sent me a sms with it's been rejected.

Sent a DM on Twitter to rbjacobs, but thought I'd ask here as well.
 
eg2505 said:
Hi all,

So I wanted to ask the better informed.

Fnb Krugerrand option? Worth anything?

As I decided to give it a bash, and I'm not 100% sure why they rejected it?

So first you have to open a share investor account, done, deposit R200 for the privilege.

Then you got to transfer cash to cover the cost of the coin, done,

Then apparently you just request to buy,
Done,

Problem for me was they simply rejected it, with no explanation, just sent me a sms with it's been rejected.

Sent a DM on Twitter to rbjacobs, but thought I'd ask here as well.
Click to expand...
That's weird. I used to do it a couple of years ago when the gold price was fluctuating. Was fun making some easy money by clicking the button at the right time. I still have 1 or 2 coins.

I just clicked buy and then I had coins soon enough
 
It's a very volatile investment / hedge against currency devaluation.

If you time it right and buy before Rand crashes / gold price increases, you can easily outperform other investment options.

Just keep in mind that the monthly fees for storing the coins are quite high and you could also make a big loss.
 
eg2505 said:
Hi all,

So I wanted to ask the better informed.

Fnb Krugerrand option? Worth anything?

As I decided to give it a bash, and I'm not 100% sure why they rejected it?

So first you have to open a share investor account, done, deposit R200 for the privilege.

Then you got to transfer cash to cover the cost of the coin, done,

Then apparently you just request to buy,
Done,

Problem for me was they simply rejected it, with no explanation, just sent me a sms with it's been rejected.

Sent a DM on Twitter to rbjacobs, but thought I'd ask here as well.
Click to expand...

Forget FNB.

Firstly, they are overcharging you for the Krugerrand. Secondly, if you want to take physical possession, you are going to pay even more for them to courier it to you. At the end of the day you will never get a return on your 'investment'.

Contact Eastgate Coin (www.sastamps.com). You can purchase Krugerrands from them at the lowest prices in South Africa.

On Friday morning I bought a 1oz from them at R18900. I paid R90 for courier fees and Friday afternoon at 15:00 it was delivered to me.
 
Visser said:
Forget FNB.

Firstly, they are overcharging you for the Krugerrand. Secondly, if you want to take physical possession, you are going to pay even more for them to courier it to you. At the end of the day you will never get a return on your 'investment'.

Contact Eastgate Coin (www.sastamps.com). You can purchase Krugerrands from them at the lowest prices in South Africa.

On Friday morning I bought a 1oz from them at R18900. I paid R90 for courier fees and Friday afternoon at 15:00 it was delivered to me.
Click to expand...

I get the mental image of a cash and carrier truck pulling in front of a house to deliver the coin
 
Visser said:
Forget FNB.

Firstly, they are overcharging you for the Krugerrand. Secondly, if you want to take physical possession, you are going to pay even more for them to courier it to you. At the end of the day you will never get a return on your 'investment'.

Contact Eastgate Coin (www.sastamps.com). You can purchase Krugerrands from them at the lowest prices in South Africa.

On Friday morning I bought a 1oz from them at R18900. I paid R90 for courier fees and Friday afternoon at 15:00 it was delivered to me.
Click to expand...


Thanks for the info ... please report back in future if you get an opportunity to get the price they are willing to buy the coin back for, assuming it is in mint condition. I get the feeling that those stores make their profits by offering less to buy coins but it would be good to know for sure.

Also storing coins at home in SA seems risky.
 
Jasop said:
Thanks for the info ... please report back in future if you get an opportunity to get the price they are willing to buy the coin back for, assuming it is in mint condition. I get the feeling that those stores make their profits by offering less to buy coins but it would be good to know for sure.

Also storing coins at home in SA seems risky.
Click to expand...

You will never get it at that price. Yes, everyone selling them puts their markup on them. Most big companies sell 1oz Krugerrands between R19k and R23k today. Some companies charge even more.

But, I agree, storing them at home is indeed a risk. But, one I am willing to take.
 
Jasop said:
It's a very volatile investment / hedge against currency devaluation.

If you time it right and buy before Rand crashes / gold price increases, you can easily outperform other investment options.

Just keep in mind that the monthly fees for storing the coins are quite high and you could also make a big loss.
Click to expand...
Monthly fees seem to be R12 for me.well worth not having to store it at home
 
Jasop said:
https://www.fnb.co.za/downloads/pricing-guide/products/WIM-Pricing-Guide.pdf

That's the storage cost per krugerrand per month, so the cost adds up when investing a large amount. Not to mention the roughly R700 difference between the buy and sell price per krugerrand, as well as the monthly account fee on the share builder account.
Click to expand...
Yes. 0.15% per annum charged monthly. Which works out to ~R12 for them to store it for you.

What's the difference in buy and sell price at a physical store. In most cases it's huge
 
Suspect99 said:
Yes. 0.15% per annum charged monthly. Which works out to ~R12 for them to store it for you.

What's the difference in buy and sell price at a physical store. In most cases it's huge
Click to expand...

Here is the Buy and Sell price for Eastgate Coin.

Problem with paying R12 a month, is that you increase your expenses in terms of the Krugerrand. At the end of the year you paid R144 more for the coin. If the Gold price did not rise to cover that, you just simply made a bad investment.
 

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Visser said:
Here is the Buy and Sell price for Eastgate Coin.

Problem with paying R12 a month, is that you increase your expenses in terms of the Krugerrand. At the end of the year you paid R144 more for the coin. If the Gold price did not rise to cover that, you just simply made a bad investment.
Click to expand...
That's a R1100 difference in buy and sell price. Your kruggerrands needs to rise by at least that amount before you make anything. If you get that price from them. Physical stores tend to try and shaft the customer when you try and sell them the coin. And will tell you your coin isn't mint anymore for whatever reason
 
eg2505 said:
Hi all,

So I wanted to ask the better informed.

Fnb Krugerrand option? Worth anything?

As I decided to give it a bash, and I'm not 100% sure why they rejected it?

So first you have to open a share investor account, done, deposit R200 for the privilege.

Then you got to transfer cash to cover the cost of the coin, done,

Then apparently you just request to buy,
Done,

Problem for me was they simply rejected it, with no explanation, just sent me a sms with it's been rejected.

Sent a DM on Twitter to rbjacobs, but thought I'd ask here as well.
Click to expand...
It might be a problem with liquidity. A couple of months ago I had the same problem with Easy Equities.

You have to remember gold is a Rand-hedge, and at this point investors would rather buy gold over the ZAR, so stock is limited.
 
Visser said:
Forget FNB.

Firstly, they are overcharging you for the Krugerrand. Secondly, if you want to take physical possession, you are going to pay even more for them to courier it to you. At the end of the day you will never get a return on your 'investment'.

Contact Eastgate Coin (www.sastamps.com). You can purchase Krugerrands from them at the lowest prices in South Africa.

On Friday morning I bought a 1oz from them at R18900. I paid R90 for courier fees and Friday afternoon at 15:00 it was delivered to me.
Click to expand...
That's all good and dandy...if you have R18k lying around. Us plebs increase our gold holding monthly by investing in Kruger Custodial Certificates until we've covered the cost of the coin. So right now RMB is the only company who offers that (to my knowledge)
 
Suspect99 said:
That's a R1100 difference in buy and sell price. Your kruggerrands needs to rise by at least that amount before you make anything. If you get that price from them. Physical stores tend to try and shaft the customer when you try and sell them the coin. And will tell you your coin isn't mint anymore for whatever reason
Click to expand...

Very true, but remember that any gold investment is a long term investment. If you ever do decide to buy physical gold, you need to hang on to it for the long run, at least 20+ years. If you are looking for faster returns on investment, rather look elsewhere.
 
Honey Badger said:
That's all good and dandy...if you have R18k lying around. Us plebs increase our gold holding monthly by investing in Kruger Custodial Certificates until we've covered the cost of the coin. So right now RMB is the only company who offers that (to my knowledge)
Click to expand...

If you do want to invest in physical gold, buy a 1/10th or 1/4 ounce. They are much cheaper and also linked to gold price. Hell, there is even a 1/20th or 1/50th Krugerrand too.
 
Visser said:
If you do want to invest in physical gold, buy a 1/10th or 1/4 ounce. They are much cheaper and also linked to gold price. Hell, there is even a 1/20th or 1/50th Krugerrand too.
Click to expand...
Thanks for that, it's something I haven't considered yet.
 
Honey Badger said:
Thanks for that, it's something I haven't considered yet.
Click to expand...

The month I do have money available, I will buy a full ounce. But, for most months, I buy the smaller 1/10th, 1/4 or even half ounce. It all just depends on my budget. But, as mentioned before, there is always a risk associated with keeping gold stored at your residence.
 
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