your guide to investing in gold

INTRODUCTION:

Diversifying one's portfolio is not only prudent, but essential to preserving and growing your investments in changing market conditions. Investing in gold offers one of the safest means of diversifying your portfolio, as it provides the security of a stable, reliable commodity. The annual demand for this precious metal consistently outweighs supply. This has ensured that gold's exclusive status continues to be upheld, and that its intrinsic value enjoys ongoing price rallies over time.

The price of gold is not subject to the same market forces that affect stocks and other financial assets. For this reason, gold serves to level, or even minimise, investment risk. Put simply, investing in gold offers protection against the devaluation of a portfolio, as its value generally increases when other markets fall. In fact, gold is often considered to be an "anchoring" investment – one that secures your investments during challenging times.

As a result of its innate and ever-increasing worth, gold is often purchased as a hedge against market uncertainty; a safety net that protects investors from the financial impact of political, economical, social, inflation-based or market-related calamities. Gold is therefore an ideal safe haven to protect oneself against the effects of inflation and currency devaluation.

Gold investments provide an excellent means of growing and protecting one’s wealth over the long term. The precious metal, aesthetically beautiful and financially alluring, has long been recognised as one of the savviest and most prestigious investments any individual can make.

Gold Facts
 

• Gold was discovered 6 000 years ago and has ever since invariably been the ultimate store of value, whether in the form of bullion, coin or jewellery.
• Gold quoted in US dollars is the world’s only marketable currency hedge. Given past and future economic and political upheaval, gold is the only world money.
• In the current fraught financial climate, gold offers an ideal hedge against the pervasive uncertainty. In this context, gold coins appeal as an alternative investment offering security and considerable potential for appreciation.
• The 55 million Krugerrands minted to date have been the world’s pre-eminent gold coins.

Investing in Gold Coins

Although only a qualified financial advisor will be able to recommend the right type of gold investment for you, bear in mind that investing in gold coins could offer valuable returns. This is particularly true of older or rarer gold coins, and coins that have historical worth: Gold is already an exceptionally valuable commodity, but rare or notable coins could boost their worth even further.

Because gold coins are a tangible investment they enjoy the benefit of being portable, insurable and very liquid. The liquidity of gold coins means they are readily available, simple to store, and easy to buy and sell at any time. Your gold coins will therefore provide you with peace of mind and a ready source of cash should you ever need it.

There are two types of gold coins generally purchased for investment purposes: Rare coins, and bullion coins:
 

Bullion Coins

Bullion coins are a highly liquid investment due to the fact that they are actually considered legal tender. While one might find it difficult to pay for goods with a gold coin, bullion coins can easily be sold to any coin dealer or jeweller. Anyone who buys or sells gold will exchange bullion for cash. The bullion investment should be considered a long term wealth store. This type of coin is minted in the hundreds of thousands and holds little to no collector value, simply a liquid legal tender investment.

The most common and sought-after example of bullion in the world today is the Krugerrand. In fact, the Krugerrand is rated as one of the top 300 brands on earth and 55 million Krugerrands have been sold to date worldwide.

Rare Coins

Rare coins, on the other hand, are minted in limited numbers. This makes them highly sought after, and means that collectors will be willing to pay a high premium to own the coins. Rare coins therefore enjoy a greater appreciation potential and some recent examples (below) are staggering. It is a simple matter of supply and demand that makes rare coins an ideal medium term investment, say 5 – 7 years.

 

South African Gold Coin Exchange

The South African Gold Coin Exchange (SAGCE) has been a household name in the coin industry in South Africa for over 35 years with Alan Demby as the current chairman. We are currently the largest distributor of gold investment, bullion and collectable coins in South Africa and have been trading since 1972. The Scoin
Shop, our retail division was opened 6 years ago and we now have 14 stores with more planned. www.Scoinshop.com is the online division on the SAGCE set up to supply the online community with gold coin investments.

The South Africa Gold Coin Exchange has successfully marketed a wide range of gold and precious metal coins minted from all the leading Mints of the world including the the British Royal Mint, the United States Mint, the Greek Mint and Monnaie de Paris. We also have joint ventures in place with the South African Mint, the Mint of Norway, the Mint of Berlin, the Mint of New Zealand and Harmony Gold.

Being the most successful trader of the Krugerrand for the past 25 years, we have generated sales of Krugerrands exceeding U$1,000,000,000 (One Billion US Dollars). We have marketed a wide variety of collectable and numismatic coins from around the world, to a large number of investors and collectors.

When making any type of investment decision, always seek the advice of a qualified financial advisor. Moreover, be sure to purchase your gold coins, Krugerrands and any other type of physical gold from a reputable agent.