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South African Gold Krugerrand Coin Begins Its 50th Year At The Top

Tuesday, May 23, 2017

The South African gold Krugerrand coin reaches its 50th year in production this year, just a year after celebrating its position as the top-selling gold bullion coin in the world in 2016, with sales reportedly generating some $1.3 billion.

Demand on the increase

Demand for Krugerrand coins was particularly strong in the UK post-Brexit as investors sought to protect their wealth in the political and financial uncertainty.

Richard Collocott, the Rand Refinery’s executive head of marketing spoke to MoneyWeb: “We anticipate and we have every intention for Krugerrands to remain, if not the top-selling gold coin in the world, in the top-three.”

First produced on 3rd July 1967 by the South African Mint, the gold Krugerrand coin has generated billions in revenue, with millions of ounces of gold sold in Krugerrands.

Collocott commented: “It’s more than exceeded any expectations that could have been had at the outset.”

Investment choices

Many investors purchase gold as a way of securing their wealth in the face of economic uncertainty. As faith in paper currencies falls, gold – which is a global currency – can be expected to rise.

This effect was demonstrated following the arrival of President Trump to the White House, when the uncertainty and concerns surrounding his approach caused predictions of market volatility and sent gold prices soaring.

Most financial advisors recommend diversifying your investment portfolio, as spreading investments is a way of balancing your assets to maintain long-term wealth. Gold – whether you’re looking at coins or bullion – is a great option if you’re considering diversifying. Our complete guide to investing in gold provides a detailed overview for those new to the market.

The future of the South African gold Krugerrand coin

Dr. Ebrahim Patel, commodities strategist at Rand Merchant Bank, told the news source that “gold has a multi-millennia-year history of storing value”.

He added: “There’s a lot of political [and] geopolitical uncertainty coming into play. These are the conditions under which gold is extremely popular, because it’s a hedge against political uncertainty, a safe-haven asset.”

Patel also predicts that investments in the South African gold Krugerrand coin will increase.   

“The Krugerrand has been widely successful (as a way of getting gold exposure). It’s among the world’s most circulated bullion coins, it’s iconic … very durable. I think we are going to see its use going from strength to strength.”

View weight variations of the South African gold Krugerrand coin and live spot prices on The Gold Bullion Co. site now.

Could small gold bars be the key to investment success?

Thursday, May 18, 2017

The gold market has a strong and healthy history of coming through financial downturns relatively unscathed, with its long-term stability and the intrinsic value of gold prompting many to buy gold bullion as a way of securing their wealth against potential financial turmoil.

In February, we reported that demand for investment gold is rising, with UK sales for gold bullion coins and bars increasing by 28 per cent from 2015 to 2016. This rise in sales came in the wake of a dip in the value of the pound post-Brexit as UK investors sought a way to secure their finances in the face of uncertainty.

Investors have long bought gold bullion to protect themselves against the instability of other more volatile markets, generally exchanging great sums of money for large bars of gold that guarantee the security of holding a physical asset that retains its value, or investing in gold bullion that they will never even physically hold themselves.

The downside to this approach comes when capital is needed quickly. If you find yourself in a situation where you need cash fast, larger gold bars can prove troublesome. They’re harder to sell quickly, especially if you’re interested in freeing up just a small percentage of the bar’s overall value.

Small gold bars, in comparison, are an easily realisable asset that offer the flexibility of dealing in lower increments. They offer investors the potential to portion their wealth more precisely, giving you more options should you need to access their value in an emergency.

Additionally, small gold bars are easier to store; great if you prefer to keep your gold close to hand at home. As well as having small gold bars available instantly in a crisis, keeping them at home reduces storage costs. This can benefit owners with smaller amounts of gold, although those with larger amounts should weigh up the costs of storing gold securely at home against the costs of paying for professional storage.

The crucial thing to remember when making the decision to buy gold bullion, is how quickly you might need to access the value inherent in your gold investment in the future.  

Larger gold bars provide slightly more value due to the lower fashion fees (an additional charge to cover the cost of production and packaging) but are generally only purchased when the investor is confident they won’t need access to the capital in the foreseeable future.

Small gold bars certainly, on the other hand, are a much more flexible option for those looking to buy gold bullion for short-term security. The fact that it’s much easier to realise their value, combined with reduced storage costs and direct access make them an excellent choice for many investors.

The Gold Bullion Company offers a wide range of gold bars for sale in a variety of sizes. Take a look at our stock and prices here.

Australian gold output at 17-year high

Monday, February 27, 2017

Australia produced its highest volume of gold for 17 years during 2016, according to a new survey by mining consultants Surbiton Associates.

Output reached 298 tonnes of the precious metal last year, as companies were spurred on by the high prices the commodity was making in the markets. Good foreign exchange rates also helped the increase, Surbiton said.

Director, Sandra Close, told Reuters: “Overall, the Australian dollar gold price has continued to be attractive, thanks to the combination of the US dollar gold price and favourable exchange rates.

“This has encouraged the redevelopment of previously mined areas and the refurbishment of mothballed plants, thereby pushing Australian gold output higher.”

The figure was the highest since 1999. Australia’s record production year was in 1997, when the country’s output stood at 314 tonnes of gold. However, there are concerns about the first quarter’s output for 2017 because of heavy rains in the main gold mining area of Western Australia, which has resulted in lower production.

Meanwhile, the gold price hit a four-month high last week as more investors sought a safe haven for their money. It reached a high of £1,010.25 per troy ounce at the market’s close on Friday (February 24).

It’s the highest price since Donald Trump won the US election and points to higher levels of anxiety about the economy, according to analysts.

Fawad Razaqzada, market analyst at Forex.com, told The Express: “The metal’s remarkable performance may suggest that investors are positioning themselves up for a major risk-off event – such as a collapse in the US stock markets.

"With the major US indices rising almost parabolically, it is just a matter of time before the inevitable happens."

Shares have been trading at high volumes amid Mr Trump’s promises of a new tax policy. He is due to unveil the details of the plans tomorrow (February 28).

Find out more about investing in gold with our guide. Or take a look at the latest deals on gold bullion bars.