Is it still worth investing in Krugerrands?
Does investing in gold or silver remain an excellent option?
The Krugerrand, first minted in 1967, is surely one of the old classics in this sphere, but they are hard to find these days says Refilwe Moloto, and are priced around R28, 502 an ounce.
On this week's edition of Moolah Monday, Refilwe Moloto speaks to Thorne White, Western Cape Regional Manager for Mr Kruger, about the advantages of investing in Krugerrands.
Thorne says the Krugerrand is that 22-carat gold coin that enthusiasts love and which circulates the world.
It is the most phenomenal thing to have on hand as an investment. There is so much that you can do with that coin, as an investment, hand it over to your kids, or as a birthday or anniversary gift,Thorne White, Western Cape Regional Manager - Mr Kruger
What exactly are they made of?
The 22-carat gold coins are 90% gold with a little bit of copper which helps make the coin more durable, says White.
The price is volatile as it is linked to the JSE market he says.
We look at the spot price for the day and that is how we determine the price on the day.Thorne White, Western Cape Regional Manager - Mr Kruger
A premium is paid when a coin is bought and not sold. at Mr Kruger, the premiums would be 7% above the spot price when you are purchasing it from us, whereas the industry is normally roughly between 6 to 12%.Thorne White, Western Cape Regional Manager - Mr Kruger
Selling a Krugerrand is a great market to have at the moment.Thorne White, Western Cape Regional Manager - Mr Kruger
It is a great time now to buy as the products are at such a great rate.Thorne White, Western Cape Regional Manager - Mr Kruger
Krugerrands are issued by the South African Reserve Bank.
Listen to the interview in the audio below:
This article first appeared on CapeTalk : Is it still worth investing in Krugerrands?