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Buy Krugerrands – Invest

Buy Krugerrands – Invest in Gold for Profits

With currency fluctuations and volatile investment markets people look at alternative ways to invest. One way is to buy Krugerrands, which are considered the ideal hedge against inflation. Even when inflation causes money to lose its value, gold stays a good investment. Gold is a scarce commodity and the world resources are dwindling. This means the gold will gain even more value over the next few years.

Even when the price of gold fluctuates, Krugerrands are still a solid asset simply because you buy gold as a long-term investment. This means that small fluctuations will not affect your investment as much it affects stock market shares.

The base price for Krugerrands is determined by the SA Rand and US Dollar exchange rate, in addition to the gold price. Rather than just depending on one element for investment performance, it is thus better to put part of your savings into another investment form of which Krugerrands are certainly among the best.

Gold is also accepted world-wide as payment method. Should the political or economic situation in any country or world-wide for that matter enter a volatile stage or the economy completely collapses you still have a valid and valuable payment method if you have stockpiled on Krugerrands.

The coins are standardised and come with certificates. Unlike with stock market investment or simply money in the bank you have something tacit compared to shares. The recent bank crisis in Cyprus and the more recent African Bank crisis led to severe financial losses for investors and people who had their money tied up in the bank. This highlighted the importance of having a tacit investment such as Krugerrands.

More about Gold

As mentioned earlier, gold is a rare metallic commodity. With a distinct glow, gold has the chemical symbol of Au which was derived from the word ‘Arum’, a Latin word for radiant sunrise. Gold is exceptionally malleable, making it the ideal metal to melt and shape into sheets. Because of its excellent ductile characteristics, it can also be made into fine and long wire.

The metal furthermore boasts superior conductivity and because of its rust and oxidation resistance, it has amazing durability.  The beautiful colour, texture and brilliance add to its attractiveness. Apart from its many uses, the metal is loved for its aesthetic value, especially when used in the crafting of expensive jewellery.

Gold is measured in troy ounces. One troy ounce weighs 31.1 grams.  The phrase troy ounce comes from the name of a city in France where the weighting unit was originally used. It takes over 248 trucks of gold bearing rock to get on average only 20 grams of gold. This should give you an indication of the scarcity of the metal.

Background on Krugerrands

The first coins came on the market in 1967 and have since then been legal tender. The coins are available in 22 carat weights and can be bought in proof state or bullion. You will notice that Krugerrands have a Paul Kruger bust on the one side. He was the President of the Zuid-Afrikaanche Republiek. The Springbok, which is the South African national antelope, is depicted on the reverse side.

With a limited total of Krugerrands on the market, the scarcity value of the coins adds to the investment prestige associated with the coins. However, the coins are the most affordable means to invest in gold and parents often buy the gold coins as investment to pay for the studies of their children in future.

Great Way to Save

Parents can also encourage responsible usage of money by teaching their children how to save through investment in Krugerrands. Rather than just buying expensive gifts that will be broken, outgrown of forgotten within three or four months, one can buy Krugerrands for teenagers, giving them something of value which can be sold in a few years’ time to buy their first car or pay for an overseas holiday.

Responsible Investment

All the gold coins available from ISA Gold come from responsible gold mining activities. With the coins minted locally, you can rest assured that the coins are standardised and that the gold is not sourced from any country or location where gold is the source of conflict.