SA crypto asset platform offering tokenised Krugerrands

[Hanno Labuschagne]

SA crypto asset platform offering tokenised Krugerrands

Tokenised financial assets exchange Mesh.trade has announced the launch of Bullion Krugerrand Tokens issued by Troygold on its platform.

Troygold’s Krugerrand tokens on Mesh represent physical gold holdings, which are stored in Brink’s in Johannesburg, which it said is a globally recognised secure vaulting facility.

 

[saor]

By tokenising the Krugerrands, Mesh.trade allows investors to buy fractions of a whole ounce (oz) coin, starting from a minimum investment threshold of R50.

“Even if you purchase a fraction of a 1oz coin, you are allocated as a co-owner of a gold bullion Krugerrand coin securely vaulted at Brink’s.”

Customers can redeem their tokens on Mesh.trade for physical Krugerrands at any time, with a redemption minimum of a 1-ounce gold bullion Krugerrand coin.

So the fractional coin thing is really just a way to get people to start spending money? You can't cash out 1/4 of a gold coin so you don't really own anything until you own a whole coin.

 

[Jet-Fighter7700]

isnt this what FNB does when you can buy a 1/4 Krugerrand, or is this just a digital way of doing the same thing?

 

[Smiggles]

Lol paying a storage fee as well. No thanks.

 

[blunt]

yeah, no thanks

 

[RiaX]

Why not just buy a krugerrand ?

 

[Adeptus Mechanicus]

Nice advert.

 

[NarrowBandFtw]

ETFs invested in gold have existed forever e.g. https://research.easyequities.co.za/krugerrand-custodial-certificates-etf

"direct" redeemable for real gold options have also existed for a long time e.g. https://www.goldmoney.com/

tokenized gold too is nothing new e.g. https://vaultoro.com/, PAXG, XAUT

which is to say ... Troygold is very late to the party, only potential benefit is it being local, potentially making tax returns simpler

 

[Napalm2880]

Why not just buy a krugerrand ?

Exactly. The only reason I can see for this to exist is to scam people.

 

[Moonlit8377]

Why not just buy a krugerrand ?

is this an example?: https://sabullion.co.za/product/1oz-bullion-krugerrand/

 

[neoprema]

Exactly. The only reason I can see for this to exist is to scam people.

Because of the same logic that prevents people "just buying a gold bar"...

Our entire financial system is based on representation of an underlying item. I can't give you an entire piece of Gold to pay for a loaf of bread. So I have a printed note that represents a % of that value that underlines it...

I can't afford an entire Krugerrand, so I can buy an official representation of it in small numbers that track the base value.

 

[Corelli]

You can buy 1, 1/2. 1/4. 1/10

The whole concept of investing into a Krugerrand means buying the actual coin and keeping it at home in a safe. Or you may as well buy gold chains etc too. Because youre buying just the weighted coins. Or you could be buying diamonds, although I will shy away from that. But then silver and platinum is also popular.

And you buy it from the SA Mint. Generally cheaper.

There was an article out recently where a guy kept buying Krugerrands and storing it in a safe, only to discover one day the coins are all gone. Some bank employee stole it.

So the best way is to have a safe at home or hide it somewhere so that no one finds it. Pretty much the same with Crypto. You know its there but you dont want anyone else to know its there. Or a good artist. Stick to a name, dont buy it for the pretty picture.