South African Krugerrand Celebrates Golden Anniversary, Demand Surges
The South African gold Krugerrand turned 50 this year, and with higher demand for physical gold, analysts expect sales levels not seen since the 1980s.
Rand Refinery marketing executive head Richard Collocott spoke to reporters at the facility last week to celebrate the Krugerrand’s golden anniversary.
Increased demand for gold has supported sales of the gold bullion Krugerrands and this year is predicted to yield the highest sales since the 1980s, with an expected 15% to 20% increase on the 1.1-million ounces of the coins sold in 2016.”
Collocott said the Krugerrand reclaimed its spot as the world’s best-selling bullion coin last year, holding a 26% share of the market. Since its launch in 1967, over 60 million Krugerrands have been sold. That’s more than 53-million ounces of gold, topping its closest competitors, the Canadian Maple Leaf and the US Eagle.
The Krugerrand is unique in that it is denominated in ounces of pure gold. Many other bullion coins have a lower face value. Practically speaking, this means that the South African Reserve Bank guarantees the purchase of any Krugerrand at the day’s price of gold. Issuing governments only guarantee to pay the face value of coins like the $50 US Eagle or $50 Maple Leaf.
Collocott said the Krugerrand makes for the perfect “safe haven” investment.
As a world-class liquid asset, the bullion Krugerrand provides investors an opportunity to buy physical gold which is recognized as a hedge against market uncertainty, as well as economic and political risk.”
There is certainly plenty of uncertainty in the world today. Tensions remain high in North Korea as the US is about to start joint military operations with South Korea. With the Republican’s failure to repeal Obamacare, there are also increasing doubts about Pres. Trump’s ability to push through his economic agenda. Gold briefly broke through the $1,300 per ounce barrier last week on safe-haven demand.
Collocott also touted gold as a hedge against inflation, pointing out that a Krugerrand purchased when the coin first came out in 1967 only cost $35. Collocott said that unlike currency, bullion investments do not lose their value since their “value is inherently stored” in the metal content.
The original intent behind the Krugerrand was to create a gold product that the ‘man on the street’ anywhere in the world could legally own.”
You can celebrate the its 50th birthday by buying gold Krugerrands today. Just call 1-888-GOLD-160 and speak with a SchiffGold Precious Metals Specialist to learn more.
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