Few countries escaped the effects of the Covid-19 pandemic. In many cases, curtailed production and closures resulting from lockdown restrictions have led to marked declines in their economies and the onset of financial recession. Given the overall economic decline, many are questioning whether or not this is the best time to consider making investments. In practice, it rather depends on the chosen vehicle. For example, Gold coins are a convenient means to trade in Bullion, which has a long-standing record of positive growth.
South Africa has a long history as a leading producer and exporter of this Precious Metal. Many countries once maintained substantial reserves, providing a monetary standard to prevent banks and governments from issuing excess paper currency. Apart from being prized for its beauty by Jewellery lovers and designers, the yellow metal has found many new applications in industries, including aerospace and digital electronics. While demand does fluctuate, it has continued to grow year after year. Gold coins offer buyers a far more affordable alternative to traditional Bullion bars. This option empowers those with a more modest income to benefit from this tried-and-tested investment opportunity.
The idea of trading in Precious Metals is probably less familiar to many than the stock market. In addition, most people have read reports of the widespread repercussions of a market crash. It is, therefore, only natural that some may also harbour doubts regarding the safety of purchasing commodities in the hope of turning a profit. In practice, the price of Gold, whether as coins or bars, does fluctuate but displays none of the extreme volatility often associated with share prices.
When you choose to buy shares in a mining operation, you run the risk that, at some stage, the ore may run out or become too costly to process profitably. By contrast, when this happens, those who chose to purchase the refined metal itself might well enjoy a profit due to this unexpected supply shortage. However, if you decide this might be the way to make a little profit, you need to be aware that not all Gold coins are equal.
The metal’s spot price determines the current value per ounce. That figure is not the sum you will pay when buying or receive if you are selling. Like Jewellery, most commemorative coinage is subject to VAT in South Africa, but legal tender Gold coins, such as British Sovereigns, the Canadian Maple, the American Eagle and the Kruger Pond, are all VAT exempted. That said, the Krugerrand is a much more appealing investment option locally. In addition, it is simpler to buy and sell in South Africa since the pricing of foreign Bullion varies from that of Krugerrands. Naturally, you can expect to pay a brokerage fee whether you choose to buy Gold coins or shares. It is, therefore, wise to deal only with an established and reputable company.
Finally, don’t think of the Precious Metals market as a means to make a quick profit. Anyone who bought a Krugerrand in 1967 could sell it today for several hundred times the price they originally paid. You don’t even need to buy a full ounce. Half, quarter and tenth of an ounce options are also available. When you’re ready to invest and want the reassurance of professional advice and certified Gold coins at a fair price, contact Mr K to purchase them securely online at your nearest store.
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.
