If you’re looking to invest in gold, South Africa is the place to do it. The country has a long history of mining and refining precious metals, and it’s home to the world’s largest bullion depository. So whether you’re looking for Krugerrands or Natura coins, here’s what you need to know about buying gold in South Africa:
South African Mint coins
The South African Mint produces four ranges of coins: the Krugerrand, Natura, Protea and Rhino. The Krugerrand is by far the most popular coin in South Africa and is recognized worldwide as a sign of quality and craftsmanship with gold bullion products. It was first minted in 1967 and has since become one of the best-selling products for any country’s minting department, with an estimated total of five billion produced so far.
Krugerrands
Krugerrands are the most popular and widely accepted gold coins in South Africa. They have a face value of R1,000, but their market value is much higher. The South African Mint (SAM minted them) from 1969 to 2007 and then again starting in 2017.
The Krugerrand was first released in 1967 as a celebration of the discovery of gold on the Witwatersrand Reefs and was named after Paul Kruger who was president of Transvaal during this time period. These coins are also referred to as Ingots or Rounds because they don’t have any writing on them other than “South Africa.”
Natura coins
The Natura coin series is a legal tender series of gold coins manufactured by the South African Mint. They issued the Natura coins in denominations of R200, R500, R1000 and R5000 with a purity of 22-carat gold.
Besides being minted from 22-carat gold, they also designed the Natura coins with high-relief dies that feature intricate details on both sides of the coin. This makes the Natura coins highly sought after by collectors and investors alike.
Protea coins
The South African Mint mints protea coins. They mint the coins in gold, silver and platinum. They’re legal tender and can pay for goods and services.
Rhino coins
- The coins are made of 99.9% pure gold, which is a much higher purity than most other coins.
- The coins are available in denominations of 1, 2, 5 and 10 rands.
- You can purchase these coins from several places including banks or coin dealerships.
Other Ways to Invest in Gold in South Africa
- Gold shares. You can invest in gold by buying shares of the company that mines it. This is a good way to get exposure to the price performance of gold, but it’s also more complex than other ways to buy gold.
- Gold exchange-traded funds (ETFs). These are traded as stocks on an exchange and give you exposure to the price performance of gold owning none of it yourself. This type of investment is simpler than buying a mining company’s stock but has its own downsides (like higher fees).
- Gold mining stocks. If you want direct exposure to the price performance of gold, ownership in individual companies that mine it could be right for you—and there are quite a few options available! However, they are more volatile than investing through ETFs or mining companies themselves because of being less diversified geographically or across many mining operations within South Africa.
The best way to invest in gold
The best way to invest in gold is to invest in a combination of the above. Gold is a good hedge against inflation and stock market volatility, so having part of your portfolio invested in it can be beneficial. However, if you have little money to invest and want exposure to gold, buying physical bullion may not be possible because of high premiums.
So what’s an investor who wants exposure to gold without paying high premiums? The answer lies within ETFs and ETNs (exchange-traded notes). These financial instruments track an underlying basket of assets including physical bullion or futures contracts on certain commodities like gold or silver. These products allow investors who have little capital but still want exposure without paying high premiums because they are less volatile than actual gold bars and coins with no storage costs involved either!
Conclusion
Investing in gold is a good way to invest your money, but it’s important not to put all of your eggs in one basket. It is also important that you diversify your investments so as not to put yourself at risk if one investment goes south. This article has provided some tips on how best to invest in gold and other precious metals such as silver and platinum.
