Wanneer is die beste tyd om Krugerrande te koop, die prys styg elke dag. Moet ons wag tot die prys val. Dit is volgens my verkeerd om nou te koop maar gaan die prys weer val om dit die moeitewerd te maak om te wag. As die mark dan val moet ons dadelik koop of sal dit net ‘n dip vat.
Hi Jackie
If you were buying in Dollars, it would be easy to answer your question, as I expect a correction in the Dollar Gold Price down to $1300 in the next few months. However, the Rand makes a difinitive answer more complicated as the Rand usually weakens when the Gold price drops which means the Rand Gold price does not necessarily drop. You will see on one of my Gold Market updates that I posted a chart of the Rand Gold Price, which shows that the Rand Gold price has broken out to the upside. The target for this breakout is R14 000/R15 000. Therefore, I believe that the Rand Gold price is going to rise substantially over the next year, mainly on Rand Weakness. Therefore my message is when looking in Rands you need to buy and “Sit Vas” as timing your entry is difficult. In the long term, the Rand is doomed, just like the Zim Dollar. Therefore, owning Gold as a Rand hedge and, more important, as a global currency hedge is currently prudent. I hope this answered your question. Regards Eelco
Hi Alex.
No. There are two organisations that produce Gold Bars, however, Bars do carry VAT, as opposed to Krugerrands which do not. Furthermore, the net of VAT premium above spot Gold is higher than for Krugerrands. As far as I know, the biggest bars in South Africa are 100g bars or about 3 ounces – by law.
Regards
Eelco
Hi Alex
No, the biggest bars you can own are 100g bars. However, Bars carry Vat and are a more expensive way to own bullion than Krugerrands.
Regards
Eelco
1. I was once told it is best to invest in gold that is outside the earth (i.e. processed) than gold inside the earth (i.e. mines). Your opinion on this please?
2. How does one buy / invest in processed gold??
Hi Johan.
Difficult to answer. I discuss this in a fair bit of detail in the Investment Guidance Report on our website. Briefly, each plays its own role. Physical gold, preferably by way of Krugerrands (call our office at 011 873 7376) is the optimum protection when the global economy and our society devolve into chaos. Gold Shares (in the ground) are more speculative by nature and normally offer better returns if Gold rises – eg. if Gold doubles, Gold shares would triple or quadruple. However, for a host of reasons, Gold shares are currently lagging gold, especially in RSA. The threat of Nationalisation is a major factor. That said, when Gold really starts running, Gold shares will run too. Not sure when though. Investing money offshore in Gold is a safer bet.
Regards
Eelco
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Wanneer is die beste tyd om Krugerrande te koop, die prys styg elke dag. Moet ons wag tot die prys val. Dit is volgens my verkeerd om nou te koop maar gaan die prys weer val om dit die moeitewerd te maak om te wag. As die mark dan val moet ons dadelik koop of sal dit net ‘n dip vat.
Groete
Hi Jackie
If you were buying in Dollars, it would be easy to answer your question, as I expect a correction in the Dollar Gold Price down to $1300 in the next few months. However, the Rand makes a difinitive answer more complicated as the Rand usually weakens when the Gold price drops which means the Rand Gold price does not necessarily drop. You will see on one of my Gold Market updates that I posted a chart of the Rand Gold Price, which shows that the Rand Gold price has broken out to the upside. The target for this breakout is R14 000/R15 000. Therefore, I believe that the Rand Gold price is going to rise substantially over the next year, mainly on Rand Weakness. Therefore my message is when looking in Rands you need to buy and “Sit Vas” as timing your entry is difficult. In the long term, the Rand is doomed, just like the Zim Dollar. Therefore, owning Gold as a Rand hedge and, more important, as a global currency hedge is currently prudent. I hope this answered your question. Regards Eelco
Can a private individual in South Africa own 1 kg gold bars?
Hi Alex.
No. There are two organisations that produce Gold Bars, however, Bars do carry VAT, as opposed to Krugerrands which do not. Furthermore, the net of VAT premium above spot Gold is higher than for Krugerrands. As far as I know, the biggest bars in South Africa are 100g bars or about 3 ounces – by law.
Regards
Eelco
Hi Alex
No, the biggest bars you can own are 100g bars. However, Bars carry Vat and are a more expensive way to own bullion than Krugerrands.
Regards
Eelco
1. I was once told it is best to invest in gold that is outside the earth (i.e. processed) than gold inside the earth (i.e. mines). Your opinion on this please?
2. How does one buy / invest in processed gold??
Thanks
Hi Johan.
Difficult to answer. I discuss this in a fair bit of detail in the Investment Guidance Report on our website. Briefly, each plays its own role. Physical gold, preferably by way of Krugerrands (call our office at 011 873 7376) is the optimum protection when the global economy and our society devolve into chaos. Gold Shares (in the ground) are more speculative by nature and normally offer better returns if Gold rises – eg. if Gold doubles, Gold shares would triple or quadruple. However, for a host of reasons, Gold shares are currently lagging gold, especially in RSA. The threat of Nationalisation is a major factor. That said, when Gold really starts running, Gold shares will run too. Not sure when though. Investing money offshore in Gold is a safer bet.
Regards
Eelco