Minted Gold Bars, Safer than the Rand?

garp

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#22
Worth mentioning that Krugerrands can also have a collectible value in addition to the gold value - i.e. some years are sought after and go for a premium. Perhaps that’s why the confusion over prices. Newly minted will be close to gold price, vintage collectible coins can be much more.
 

NarrowBandFtw

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#24
Worth mentioning that Krugerrands can also have a collectible value in addition to the gold value - i.e. some years are sought after and go for a premium. Perhaps that’s why the confusion over prices. Newly minted will be close to gold price, vintage collectible coins can be much more.
Newly minted "proof" Krugerrands is another scam to be aware of, carries a hefty premium and dealers will sell you some song and dance about how it will appreciate in value better ... it won't ... just tell them you only want regular bullion Krugerrands, you don't care at all about collector's value
 

rietrot

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#26
Krugerrand Custodial Certificate. RMB offers you the world's first legal tender gold coin custodial certificates. This investment, listed on the JSE in the ETF sector, is suitable for private investors and institutions
https://www.rmb.co.za/page/krugerrand-custodial-certificate

Kindoff defeats the purpose of owning gold in preparation for the end of the world. But a really good idea for people that don't want the physical gold. This way they can't lose your specific safety deposit box.
 

Visser

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#28
@Visser - we need your input over here
Here is my opinion.

If you are serious about investing, a part of your portfolio should consist of metals such as gold or silver. I personally prefer investing in Gold and also taking possession of my gold.

Numismatic Value

I will not buy any gold items that have Numismatic / collectors value, such as proof Krugerrands or older Kruger Ponde. These coins normally comes with a premium for collectors. But, the problem comes when you want to sell them. Often investors will offer you gold value only and finding a collector who is willing to pay the premium may prove difficult.

So, if possible, stay away from coins such as Proof Krugerrands or other gold coins that are being sold at a premium.

Always try to buy your gold coins at close at current gold price as possible.

Fractional Krugerrands

Krugerrands come in 1oz, 1/2oz, 1/4oz, 1/10th, 1/20th and 1/50th denominations.

If you can get them at close to Gold price, gold is gold. I buy any fraction, depending on how much money I have available the month and just continue to grow my collection.

Storing Your Own Coins

Yes, there are risks associated to storing your gold coins, but, I will never let a third party hold it for me. Personally, I am willing to take the risks. But, at least I have my coins with me. If I need quick access to cash flow, I can immediately sell what I need cash for.

Long Term Investment

Investing in gold, in my opinion, is a long term investment. It does not grow over night. The longer you can keep your gold, the better.
 
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Visser

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#29
Hi All.

I have been investigating minted gold bars as a "safer" option to the SA rand. My intention is to buy gold bars every month as a form of savings. I understand gold also varies in price considerably, but at the moment (to me at least) it seems safer than our beloved currency. I also understand that it would eventually have to be converted back into some sort of currency, but it should hold up better?

Any opinions on this? Anyone done it?

Thanks!
Forget gold bars. As a private individual you are not allowed to buy or sell them. Many sellers online sell smaller bars, but these are mostly gold plated and have no value in my opinion.

Focus on Krugerrands. Just normal Krugerrands - not Proof Krugerrands. Do not spend all your money on gold alone. You need to diversify your investment portfolio.

Buy them from a trusted dealer like Eastgate Coin, where you can buy them at a great price. If you do not have R18k+ to buy a 1oz, you can always buy smaller denominations, like the 1/10th at much cheaper.

Try to hang onto your gold coins for the long run. Do not sell if absolutely necessary. Over the long run, you will not be sorry.

The nice thing about Krugerrands, their value are determined by the current gold price. You can sell them anywhere in the world and you will get the same price for it. If the gold price climbs, your investment grows.
 

JayM

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#30
The nice thing about Krugerrands, their value are determined by the current gold price. You can sell them anywhere in the world and you will get the same price for it. If the gold price climbs, your investment grows.
That's great, but how does one get KR out of the country easily?
 

rietrot

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#32
That's great, but how does one get KR out of the country easily?
Why would anyone want to do that? Someone at SAA will just steal it out of you suitcase.
You can just use electronic money if you want to go out of the country.
 

JayM

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#33
Why would anyone want to do that? Someone at SAA will just steal it out of you suitcase.
You can just use electronic money if you want to go out of the country.
Of course you're not going to put it in a suit case. Duh.

The point I'm making is that buying KR in South Africa as a hedge against a collapsing rand doesn't really achieve that objective if you're forced to have to move it back to rand before you can send it anywhere.
 

Visser

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#34
That's great, but how does one get KR out of the country easily?
When I went to Panama earlier this year I simply put 3 1oz coins in my wallet and I left the country and entered theirs. I sold mine at a jeweler there.
 

rietrot

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#35
Of course you're not going to put it in a suit case. Duh.

The point I'm making is that buying KR in South Africa as a hedge against a collapsing rand doesn't really achieve that objective if you're forced to have to move it back to rand before you can send it anywhere.
It does because the gold price is $
 

Visser

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#36
Of course you're not going to put it in a suit case. Duh.

The point I'm making is that buying KR in South Africa as a hedge against a collapsing rand doesn't really achieve that objective if you're forced to have to move it back to rand before you can send it anywhere.
Your problem lies here. Never use gold as a hedge for anything.

Perhaps you should seek the assistance of a professional investor to assist you with your choices and balancing your portfolio.
 

Visser

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#37
Gold price has not really grown since 2010
No, it did not. Neither did any other commodity.

But, I have been collecting coins (and banknotes) for the past 20+ years, mostly numismatics. But, whenever I have money extra I will buy Krugerrands. Most of my Krugerrand collection was acquired when Gold were still in the US$250-US$350 range. This far my collection has grown substantially. I believe it still will grow over the next 30 years. Hence the reason I still buy today.

Gold never was, and today still is not a get-rich-quick object, nor should it be used as a hedge. It is a long term investment. Investing in gold alone would be a big mistake and you need to balance your investment portfolio properly.
 

JayM

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#38
When I went to Panama earlier this year I simply put 3 1oz coins in my wallet and I left the country and entered theirs. I sold mine at a jeweler there.
That is highly illegal. And impractical for larger amounts.
 

Visser

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#39
That is highly illegal. And impractical for larger amounts.
Not if you report it. I have sold many Krugerrands to international buyers... some as recent as last week. As long as it is reported and the taxes are paid everyone is happy - it goes into a box, an envelope to EMS and then out of the country.
 

JayM

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#40
Not if you report it. I have sold many Krugerrands to international buyers... some as recent as last week. As long as it is reported and the taxes are paid everyone is happy - it goes into a box, an envelope to EMS and then out of the country.
So long as you explicitly have SARB approval, then yes it's fine. The way you described it (i.e. putting them in your wallet) implied that you snuck them out. I mean who puts coins worth 20 grand in their wallet? That's just stupid.

And I'm with Buffet on this one: gold is a not great investment. It is a perhaps good store of wealth, but that's about it.
 
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