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.
