Investing in Krugerrands

Krugerrands remain a popular investment for gold investors in part because of their value and small size, which makes for easy storage. Krugerrands appeal to professional and private investors who wish to make a direct investment in gold bullion, hedge their portfolios against the U.S. dollar, or to further diversify their portfolio.

Investors continue to buy gold because of the proven longevity of its value. Many gold investors consider this precious metal a safe investment that will retain its value even in an economic collapse. Owning a tangible asset appeals to some investors, who may put greater trust in physical coins or bars than in securities investments that exist only on paper. 

If you are interested in buying Krugerrands you should have a secure place in which to store them. You also should be wary of scammers, seek a reputable gold dealer, and brush up on your state’s tax laws, which could include a sales tax on gold. Here are some features of investing in gold that some investors could find attractive:

  • The gold market is very liquid.
  • Your investment is in physical gold and is not dependent on the performance of a gold mine.
  • Gold has a positive track record in terms of returns and has increased in value because it is a non-renewable natural resource.
  • Gold has a low-to-negative correlation with other asset classes, making it an effective portfolio diversification tool.

Krugerrands are the most affordable and effortless way of investing in Gold bullion and because Gold has always been one of the best-performing and most stable precious metals, they offer a very desirable return on investment. Historically, Gold has given local investors good value despite fluctuating financial markets since it is an international commodity which is largely unaffected by local economic and political shifts.

The true measure of any financial portfolio’s merit is it’s historical performance and in this regard, Krugerrands have on average doubled in value every 5 years for the last 50 years. This is due to the growth of the commodity as well as the devaluation of the Rand against the US Dollar, proving that they are a solid investment and an ideal Rand hedge.

Krugerrands are available in fractions – one ounce, one-half ounce, one-quarter ounce and one-tenth ounce weights – assisting in affordability for first-time investors. They can be easily bought and sold, giving the bearer quick access to cash.

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