South African Gold is a popular investment, particularly in the form of Krugerrands. These are one of the most popular ways to make gold coin investments throughout the world. Some have even described them as the basis for all gold coins.
These coins are minted in South Africa and made up of 91-92% solid gold with a little copper mixed in to harden and alter coloring. They are mainly produced as bullion coins though there is a slightly different version made for collectors specifically, which has a more shiny appearance.
Since the 1980’s, there have also been different weights of the coin produced, with four sizes available from 1/10th ounce to 1-ounce versions. Today we’re going to look at what drives the popularity of these coins, to help you decide whether to invest or not.
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Easy to Sell
One of the biggest reasons these are popular is that they’re easy to sell. Liquidity is important in many investment markets because with few interested buyers you are unlikely to get a decent price for your gold. South African Krugerrands available from all kinds of sellers, such as www.lpm.hk, and there’s a whole marketplace full of hungry buyers too. This helps to regulate prices and with moving your investment when the time comes.
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Krugerrands are Minted Every Year
Every year the South African mint produces more Krugerrands. This is important because it means the popularity and circulation will stay high. These coins have close to the liquidity of regular cash thanks to how widespread they are, yet they have a deeper value to them which gives a lot more safety in terms of long-term value.
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South Africa is a Huge Gold Producer
While gold production has undeniably slowed in South Africa, it’s still hovering just outside the top 5 gold producing nations on earth. That’s a staggering fact when you consider they used to annually produce more than 10x what the other top nations were, and they still have the second largest reserves on earth.
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Safe & Reliable Investment
The beautiful thing about the Krugerrand is that it is close to 92% real gold. This gives it an inherent value which can’t really fall below the price of gold for obvious reasons. Gold has long been a popular investment because of the safety and solidity it offers to investors. With the Krugerrand, you get to take full advantage of this and the safety it offers you.
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Easy to Monitor
There’s another advantage to being tied into the gold price as well. It’s easier to monitor the value of your coins and figure out what a good deal is. If gold spikes, expect your coin to suddenly be worth more too. If it falls, the opposite is true, though remember that on the whole gold is a pretty stable market. Remember there is likely to be a small premium for coins over gold itself due to commissions, so long-term investments are often the preferred method.
Conclusion
Today, you can choose from a lot of different types of investment, different coins and different ways on how you can invest. I say, that before you venture into the world of investing using gold or any other form, always make sure that you’ve researched well enough on what are the advantages, disadvantages and possible risk that will come with it. Every investment has risks that comes with it, it will all come down on how prepared are you when the time comes. So make sure to make the necessary moves, or you’ll end up losing instead of gaining.
