Top Reasons to Invest in Krugerrands
Although many smaller investors are happy to buy gold bullion through exchange traded funds or paper investments, such as certificates, the more secure way to invest in gold is to buy tangible gold bullion from reputable suppliers, such as us at ISA Gold.
We offer you the opportunity to invest in Krugerrands in physical form, which will give you more security than certificates. If you have the capital available, buying shares in a mining company is also well worth the risk, but considering the risks associated with shares, such as stock exchange collapses, fluctuations because of world market influences and the eminent risk of losing your total investment should the mining company collapse, it is better to invest in Krugerrands and other gold bullion. Having the physical item means having an investment that is liquid, safe from market fluctuations and something that can be used as legal tender.
If the US Dollar should collapse or the South African Rand lose all its value, you will still have a tangible means of payment and will thus have a hedge against currency uncertainty and inflation. Although jewellery is certainly also worth the investment, you normally pay a considerable amount for valuable jewellery and the reselling value is often disappointing. Even though the certificate may state its true value, jewellers rarely pay the price that you want for your jewellery, because they have to resell or want to melt the gold for usage in other jewellery.
Having gold in the form of the well-established and the sought-after form of Krugerrands, whether in a 10thoz, ¼oz, ½oz or 1oz, protects you against all the above risks. With the coins being small enough to securely store and transport, you don’t have to risk losing your investment if the bank where you have certificates fold. The gold is immediately available and can be traded across the globe. This means having the funds that you need, should you want to emigrate or experience financial difficulties.
With gold being a scarce metal and the resources dwindling, the value of gold increases with time. Although it is certainly not the best short-term investment vehicle, the Krugerrand is perfect for five and more years of investment. Invest in Krugerrands for reasons such as:
- Diversification of your investment risks.
- Hedge against effects of inflation.
- Financial security in times of economic and political instability.
- Savings for the future.
- Investment for the future of your children, such as education or to give them an inheritance.
With 0% VAT on gold and only a small premium payable on the gold price, you will benefit from buying the coins when the price is moderate or low, and keep such for a few years before reselling. People have been buying Krugerrands since the late sixties and those who have kept their coins for periods of ten or more years certainly have benefitted from their investment return. If you want to save even more on the purchase price, buy in bulk instead of one at a time, as this will mean a faster return on your investment.
With Krugerrands being lighter and smaller than gold bars, secure storage and transportation are hardly ever problematic. If you are concerned about the safety of your investment in gold bullion, then the Krugerrand is the best option.
The coins are also exceptionally affordable in comparison, with the bars making it possible for even the smallest of investor to start saving up in gold bullion. Indeed, few gifts to your children will be as valuable as Krugerrands, especially if you buy at least one per year for each of your children. This will give them a solid financial foundation for their future. You can, of course, also teach your children the value of investment by teaching them to save up to buy the smallest coins for themselves over time.
Where to Buy?
It is imperative to select a reputable supplier, such as ISA Gold. Our offices are in Sandton City and we adhere to strict confidentiality rules regarding the investments of our clients. We offer you the opportunity to buy and sell gold and silver, including Krugerrands online, and obtain the assets directly from us. All of the gold that we trade in comes from Rand Refinery, which adheres to ethical codes of conduct in purchasing and refining only responsibly sourced and conflict-free gold. View our full range of products and contact us if you want to invest in Krugerrands.