Krugerrand

A Krugerrand is a South African gold coin, first minted in 1967 in order to help market South African gold. The coins have legal tender status in South Africa but are not actually intended to be used as currency.

Benefits

• Investment is made on physical gold and not a company or concept
• Low to no maintenance on investment
• Easy to liquidate
• A secure asset that has been treasured as store of value for thousands of years
• Serves as a SA Rand hedge against the US Dollar and protects investors against Rand depreciation
• Gold has a low to negative correlation with other asset classes making it an effective portfolio diversifier

Who should use this product?

• Institutions and private clients who wish to make a direct investment in gold bullion
• Investors who wish to hedge their portfolios against the US Dollar
• Investors who wish to diversify their portfolios

How to use this product?

• Krugerrands are traded in the same way as other listed equities
• Prices are quoted on 1 troy ounce, 1/2 troy ounce, 1/4 troy ounce or 1/10th a troy ounce
• Factors that affect the price are gold price in US Dollar terms, Rand/Dollar exchange rate and political and social situations