The 2019 Krugerrand. Pic: Supplied

Political and economic uncertainty often result in currencies depreciating on the international exchange system, warranting that we invest in wealth hedges like gold and Krugerrands in order to preserve our wealth.

A noteworthy reminder is 1980 when gold reached over $800 per oz after Russia invaded Afghanistan. The same year, a limited amount of the fractional Krugerrands was first minted.

The authorized mintage was 100, but only 60 people accepted the invitation to buy the set and the final mintage is very low and they are extremely rare, says the Scoin Shop. They added: “These coins are so scarce that they are now worth approximately R150 000 for a set of 4 coins.”

Krugerrands, the 1 oz bullion coin, was the creation of the SA gold industry in 1967. It recently hit a new world and South African record of R24 500 per coin.

As threats continue being traded between major world powers, the international world order and the rand are equally untenable. For instance, in June this year, the rand hit record lows. This prompted a surge in the price of gold, which reached a five-year high of $1500 per oz. 

This trend had started getting more pronounced especially since December last year, when the metal noticeably began picking up old and new fans in larger numbers. This marked interest in gold can in fact be traced to the past
few years.
“The demand for gold from collectors, investors and institutions is increasing which is evident in the holdings of the gold ETFs,” said the South African Gold Coin Exchange in a statement.
The statement cited banks, asset managers, stockbrokers and wealth managers as well as the media as among those talking up gold as the next big thing.

Analysts also point out that gold is even more attractive with Interest rates set to fall in the USA. Experts also contend that the groundwork has been laid for the next bull market, what with escalating trade wars and war games across the globe causing a great deal of concern.

This makes now the perfect time to find shelter in Krugerrands. Says the Scoin Shop: “South Africans have the best currency and rand hedge in their own back gardens in the form of Krugerrands. From a low of R27.50 in 1967, Krugerrands have reached a very respectable R24 500 some 52 years later.”

The 2019 Krugerrand. Pic: Supplied

The rand’s fall was responsible for this high, according to the Scoin Shop. They said: “It was the perfect storm that created this scenario and holders of coins and their heirs must be satisfied that the perfect rand hedge gives them the edge.”

The Scoin Shop started in 1999 when gold was $300 an oz and has created thousands of new collectors and investors.

Krugerrands were first sold at the Rand Easter Show and are today sold by coin and gold dealers, jewellers, coin distributors, banks, wealth managers and investment advisors throughout the world, said the Scoin Shop.

They added that Krugerrands have spawned a 1 oz bullion coin industry with over 150 million different coins minted to date such as the US $50, Canadian maple leaf, Austrian Philharmonic and the Chinese Panda to name a few.

“This has also helped create a large group of collectors numbering some 300 million presently. In turn, Mints have created limited-edition variations of these coins which have grabbed the attention of collectors and investors internationally,” said the Scoin Shop.