Gold in South Africa
Recently, Gold is considered to be a “safe-haven” investment across the world. Not so long ago, countries around the world used to have the “gold standard” for currencies, which meant that their currencies were backed by gold held by the government’s central banks. Currently, gold is considered as a liquid asset, which means that it can be easily converted to cash when needed. In times of uncertainty, investors turn to gold, since it is seen as a safe investment which won’t lose its value. Also, the price of gold has seen a significant rise since the start of the COVID-19 pandemic and the resultant chaos in the global economy, which saw world’s financial markets going through high volatility and turmoil in most sectors.
Can South Africans buy gold?
Yes. The South African government’s official mint (South African Mint) produces four ranges of gold coins that you can buy. These are the Krugerrands, Natura, Protea, and Rhino coins. The South African Reserve Bank considers Krugerrands, Natura, Protea coins as being legal tender.
What are the ways I can invest in Gold in South Africa?
The following are ways to invest in Gold in South Africa:
- Physical Gold
The most common way by which people invest in gold is to buy physical gold. This often takes the form of jewelry. Another way to invest in physical gold is to buy pure gold coins or gold bullion. The South African government’s official mint (South African Mint) produces four ranges of gold coins that you can buy. These are the Krugerrands, Natura, Protea, and Rhino coins.
- Gold Certificates
If you feel insecure with storing your gold, you can also consider buying gold certificates offered by different South African investment banks. On purchasing, a gold certificate, gold is kept in your name with the bank. The bank charges you an upfront fee for the storage of that gold.
- Gold Shares on JSE
If you do not want to directly invest in gold, many investors also choose to buy shares in gold mining companies. Gold mining companies profit more when the price of gold rises. Therefore, if you want to invest in gold, then you can indirectly do so by buying the shares of gold mining companies. This is a much cheaper way to invest in gold since you can buy quite a few shares without investing too much money.
- Gold ETFs on JSE
There are several Exchange-Traded Funds that are linked to gold. The value and performance of these ETFs is directly linked to the performance of gold. This is another way you can indirectly invest in gold.
- Gold Futures and Options
For sophisticated investors, investing in gold futures and options is another way to make money through price fluctuations in gold or to hedge the risk from these movements. When investing in futures and options (F&O), you are basically participating in the international market for gold. You can use futures and options as a way to protect your money from inflation.
How much is a bar of gold in South Africa?
The following are gold bar prices in South Africa
| Gram Gold Bar Price | Gold Price per Gram [ZAR] in South African rand | Low |
| 1 Gram Gold Price (1 gram) | 907.51 | 907.51 |
| 2 Grams Gold Price (2 gram) | 1,815.02 | 1,815.02 |
| 5 Grams Gold Price (5 gram) | 4,537.55 | 4,537.55 |
| 10 Grams Gold Price (10 gram) | 9,075.11 | 9,075.11 |
