Krugerrands reach world record prices ... again.
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From January 2019 to date, the gold price in Dollars has moved from $1,278 to $1,681; achieving an equivalent 32% return in just one year.
This can be accredited to political unrest throughout the world resulting in many currencies taking huge hits during the year. This uncertainty reinforces the pressure to hold safe haven assets. International factors such as Brexit, pension reform in France, problems in Chile and Argentina, missiles in North Korea and Iran, and of course Coronavirus have caused more consternation and jitters, while currency devaluation is widespread. Loadshedding, political uncertainty, and the weakening Rand adds doubtful sentiment for South Africans.
Although the Rand/Dollar dipped and dived throughout the year, on 1 January 2019 and 19 December 2019 it was exactly the same. However, the Krugerrand price shot up from R19,000 to R24,000 over the same period. The ultimate hedge.
The booming share prices in America and the low interest rates have also stirred interest in gold. Although the Rand devalued in 2019, it proved to provide a positive return for gold coin owners, as the current Rand value of Krugerrands reaches new world record highs of over R26,800. Gold shares, which have been the laggards of the last 10 -15 years, were amongst the highest in the last 12 months.
Buyers and Sellers
There will always be buyers during the boom time, and as a result, there are will be many sellers. South Africans who finding themselves short of cash, opt to cash in on their gold.
Selling collectables like numismatics, coins and medallions offers short term relief, as opposed to keeping them for future stability.
If you buy and hold it for all the right reasons you will have peace of mind. Collectors enjoy the thrill of accumulating and finding coins from all over the world with interesting people and topics from different eras that are meaningful to them, and give satisfaction over many years.
These days, investors have a wealth of choices in terms of insurance policies, stocks, property, or alternative assets. There are different investment opportunities, however gold - touted as the “granddaddy” of alternative investments - has proven to be the best bet. Physical gold, as compared to “paper gold,” or exchange-traded funds, offers piece of mind that a tangible and universal commodity, is available if you need it.
For more information visit The Scoin Shop.