For various reasons, many South Africans are currently thinking about relocating their families to other countries, such as Australia, Canada and the United Kingdom. Often, they are uncertain regarding what they may or may not be permitted to take with them when they leave. In many cases, their concerns relate to any government restrictions that might apply should they wish to take Gold Bullion out of the country.
In practice, whether leaving the country permanently or just taking an overseas holiday, everyone must complete a customs declaration listing serial numbers of valuable items that will accompany them upon departure. Returning holidaymakers who failed to do so could be asked to pay import duty on goods like laptops, video cameras and watches, even though these were purchased in South Africa. For those who intend to leave the country permanently, the regulations regarding their right to export Gold Bullion may vary according to their citizenship.
For example, overseas visitors to our country are free to take up to fifteen Krugerrands with them when they return home. However, they must show proof that they purchased the coins with the foreign currency they brought into the Republic. South African citizens must first obtain permission from the South African Reserve Bank if they are planning to export Krugerrands. The bank may permit exports of these coins to the value of R30 000 by a resident as a gift to a non-resident. By contrast, Gold Bullion in the form of foreign coinage, such as the British Sovereign or the American Indian Head Eagle, is not currently subject to SARB constraints. There is, therefore, no limit to how many of these a resident may export, though it is necessary to declare these with customs beforehand.
In practice, however, purchasing Krugerrands offers investors some significant advantages. Unlike foreign coins and jewellery, they are not subject to local value-added tax. Furthermore, the minting process adds only a small premium to the metal’s spot price. These factors and the ease with which these coins can be bought and sold have made the locally-produced coins the cheapest way to invest in Gold Bullion. Also, each of these iconic 22-carat coins contains precisely one troy ounce (31,1035 grams) of fine Gold. The precise composition makes it easy for an owner to determine their market value by monitoring the twice-daily spot price. It’s worth noting that the troy ounce is used worldwide when weighing Precious Metals. It is 2,75 grams heavier than the regular (avoirdupois) ounce quoted by celebrity TV chefs and used as a standard unit of weight for all other materials.
South Africa’s decision to introduce the Krugerrand in 1967 created a new form of exportable Gold Bullion. Similar coins were previously only of interest to numismatists. For more in-depth advice and to purchase certified Gold Bullion coins or bars and silver, talk to an expert at Mr K.
Disclaimer: The information above was derived from reliable sources and deemed accurate at the time of writing. However, changes following publication may have affected its accuracy. Such changes may occur without notice and Mr K cannot be held liable for inaccuracies in this article’s content or how a reader may choose to interpret it.
