Why the Kruger Coin Plays a Significant Role in Modern Investment Strategy

The one-ounce Kruger coin was a move to promote the sale of South African Gold. Over 56 years later, it still plays a role in modern investment strategies. It is uncertain, but the Ancient Egyptians were likely the first to mine the yellow metal in around 2450 BC. What is certain is that Gold remains prized for its beauty and durability until today.

Though first used to create jewellery and decorative ornaments, King Croesus of Lydia eventually employed this Precious Metal to mint currency in around 550 BC. The practice spread and continued well into the twentieth century when Britain and many other countries chose to abandon the Gold standard in the wake of the stock market crash of 1929 and the subsequent decade-long great depression. In 1971, the United States finally followed suit.

However, the appeal of Gold persists, and the demand for it continues to grow. Despite a recent decline, around half of the metal mined is still used to make jewellery. Applications in industries like electronics, aerospace, automotive, chemical, defence and healthcare account for about 11 per cent. Central bank demands and private investors make up the balance.

The Appeal of The Kruger Coin For Investors

Shares, futures and exchange-traded funds (ETF) can offer a lucrative investment opportunity. However, they are subject to negative market influences, which can lead to heavy losses under some circumstances. By contrast, buying and selling the physical metal carries minimal risk, especially when in the form of Gold coins.

Whether you buy a Krugerrand coin or a similar weight of Bullion bars, their value will always be based on the spot price for one troy ounce of pure Gold. That price has maintained its upward journey even before the release of the iconic South African commemorative coin in July 1967. There have been occasional dips along the road, but the metal has never displayed the huge fluctuations often associated with other investment vehicles. So why don’t all investors only buy Gold?

Despite their volatility, shares and other paper options have the potential to generate substantial, short-term profits, whereas gaining a significant return from bullion takes longer. Think of the share market as similar to a casino; you win and lose some, but it’s quick. Buying a Kruger coin is more like opening a savings account; you can expect a good return, but it will take much longer.

Buying Gold Coins As a Safety Net

For the individual, buying a Kruger coin each month can be the perfect way to provide for the future, perhaps to pay for a child or grandchild’s university fees, first car or wedding. For the seasoned investor with an extensive share portfolio, purchasing some form of this precious metal can serve as a hedge against any significant dips in the more vulnerable share market.

Interestingly, while the share market invariably reacts negatively to events like supply shortages, inflation and conflict, the Gold price usually gains ground. That’s a good reason to buy a Kruger coin today.

Where to Buy Your Krugerrand Coin

MR K is a registered bullion dealer approved to purchase directly from the Rand Refinery, guaranteeing high-quality, authentic Gold coins and Bullion bars. Talk to us, and we’ll help you begin your investment journey.

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.