South Africans rushing to buy Krugerrands

Zophos said:
Who's rushing? Who?

Anyway, I am no expert, but today gold is the highest trade price it has ever been, thus, probabily not a good time to buy.... :unsure:

View attachment 1726971

*Above comment is probably why I am poor....
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1718627117291.png

Right here, at this point, someone said the exact same thing as you did.

Nonetheless, Gold price will come down again, and it may shave as much as $800 to $1,000, perhaps even more off the price. The moment things stabilize across the globe, investors will head back to the markets and they will drop gold like a hot potato. Was it back in 2010 when gold hit $1800 and after the dust settled, investors dropped gold and ran back to the markets and it fell to under $1100 in a day?

Gold should form part of a portfolio but it should be a 50 year+ investment strategy. Gold should also only be used for what it always has been designed for, a safe haven for your money when things go South globally.
 
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Pegging said:
No it would be false.
84% including dividends over 5 years

View attachment 1726995
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Dead wrong.

The last time Gold price was at $300, was around 1971.

But, if you invested $400 in the SPY ETF in 1993 and did not reinvest your dividends, today you would have hade US$5,751.25. If you reinvested your dividends, today it would have been US$8,617.65.

The $400 you paid for that 1 Ounce gold coin in the 1970's would today be worth just over US$2,339.30.

The stockmarkets are the only place where you can grow your money. And, if market stability returns tomorrow, that gold 1 ounce coin could be worth $1500 or less in a matter of days or even hours.
 
if you think gold is an investment, you are wrong

wheres that investment expert that was arguing with me the other day
 
saturnz said:
if you think gold is an investment, you are wrong

wheres that investment expert that was arguing with me the other day
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Yeah, it all depends on how much money you want to make.
 
rvZA said:
Dead wrong.

The last time Gold price was at $300, was around 1971.

But, if you invested $400 in the SPY ETF in 1993 and did not reinvest your dividends, today you would have hade US$5,751.25. If you reinvested your dividends, today it would have been US$8,617.65.

The $400 you paid for that 1 Ounce gold coin in the 1970's would today be worth just over US$2,339.30.

The stockmarkets are the only place where you can grow your money. And, if market stability returns tomorrow, that gold 1 ounce coin could be worth $1500 or less in a matter of days or even hours.
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Is the 5 year number from google wrong?
 
My brother asked me back in 2013 what he should invest in, I told him gold. His investment probably tripled by now and I bet you the next time I see him he will complain about how he is being screwed with overtime pay.
 
saturnz said:
lol, what a dumb comment

gold preserves wealth, it doesn't increase it
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This is the problem with the new generation it appears. They want to preserve and not increase. Problem is, things do not work like that.
 
dontcryforme said:
My brother asked me back in 2013 what he should invest in, I told him gold. His investment probably tripled by now and I bet you the next time I see him he will complain about how he is being screwed with overtime pay.
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Okay. Let's see how good your advise was. Let's say your brother bought a single Gold 1 Ounce Kruggerrand at the year low price of US$1,192.75. Gold price today is US$2,337.00 today. So well, done he doubled his money, if he sells that 1 ounce coin today. Impressive.

So, if he rather listened to someone who knows about investing, he could have placed that US$1,192.75 in the SPY stock in the US on 1 January 2013. Maybe he decided not to re-invest dividends, in which case today, he would have had US$4,897.40.

If he clicked the button to reinvest the dividends, that US$1,192.75 would have grown to a full US$5,413.70 today.

You are free to go do the math on https://stoculator.com/, where you can actually see what you would have made with your money.

Again, Gold is not an investment. It is a very long term investment and should form a very small part oof your portfolio. Use gold only as a safe haven when the markets struggle.
 
rvZA said:
This is the problem with the new generation it appears. They want to preserve and not increase. Problem is, things do not work like that.
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another dumb comment

read carefully

one owns gold to preserve wealth, not increase it

I didn't make any observation other than that, your strawman is weak
 
rvZA said:
Okay. Let's see how good your advise was. Let's say your brother bought a single Gold 1 Ounce Kruggerrand at the year low price of US$1,192.75. Gold price today is US$2,337.00 today. So well, done he doubled his money, if he sells that 1 ounce coin today. Impressive.

So, if he rather listened to someone who knows about investing, he could have placed that US$1,192.75 in the SPY stock in the US on 1 January 2013. Maybe he decided not to re-invest dividends, in which case today, he would have had US$4,897.40.

If he clicked the button to reinvest the dividends, that US$1,192.75 would have grown to a full US$5,413.70 today.

You are free to go do the math on https://stoculator.com/, where you can actually see what you would have made with your money.

Again, Gold is not an investment. It is a very long term investment and should form a very small part oof your portfolio. Use gold only as a safe haven when the markets struggle.
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You are using USD to make your assumption, but remember, the ZAR has devalued a lot against the USD:

1718635144772.png

Here it is in ZAR

Edit: He paid for it in ZAR, so he didn't double it, he tripled it as stated originally...
 
dontcryforme said:
You are using USD to make your assumption, but remember, the ZAR has devalued a lot against the USD:

View attachment 1727007

Here it is in ZAR

Edit: He paid for it in ZAR, so he didn't double it, he tripled it as stated originally...
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Wrong again.

At the time he bought the Krugerrand at $1,192.75 I simply took R12,273.39 and converted it to US$ and placed the whole US$1,192.75 in S&P500 ETF and left it there. Even if the Rand devalued, that would have been a good thing, because my $5,800+ would be worth a lot more today if I decided to spend it in SA. Over a 10 year period, Gold is an extremely bad investment VS the markets.

And don't forget, since Gold is coupled to the Dollar, a devaluing Rand would make Gold more unaffordable for those buying in Rands as well.
 
rvZA said:
Wrong again.

At the time he bought the Krugerrand at $1,192.75 I simply took R12,273.39 and converted it to US$ and placed the whole US$1,192.75 in S&P500 ETF and left it there. Even if the Rand devalued, that would have been a good thing, because my $5,800+ would be worth a lot more today if I decided to spend it in SA. Over a 10 year period, Gold is an extremely bad investment VS the markets.

And don't forget, since Gold is coupled to the Dollar, a devaluing Rand would make Gold more unaffordable for those buying in Rands as well.
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Your tool you use doesn't include the hidden fees which brokers charge:

Management fees
Sales loads and commissions
Trading fees
Custodial fees
Service fees
Advisory fees
Distribution fees


Then there is also your annual dividends tax which you must pay, whats that 20%?

Your tool only appears to calculate the increase in the value of the stock and also includes the dividends if any.

Edit: Don't forget capital gains tax when you pay out your investment.
 
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A good broker would probably have more than tripled his investment, yes, but he didn't want anything risky. In fact he said he wants to invest in something with zero risk. Gold was it. Shares have too many risks and most CEO's are out to make their cut and then jump ship.
 
explain to me how a person who bought gold at $1,500 and sold it for $500 has "preserved their wealth?" they've eroded it plain and simple...

Vanguard TER is 0.03% in fees on their S&P500 ETF

"a good broker..." I'd rather die.. those clowns charging 2.5% per year in fees, guess what... you'll lose 60% of your capital when you retire <-- say that again, 60%.. more of your money went to this clown than in your pocket. Have you not driven by their marble halls and billion Rand buildings, you paid for it!
 
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