Saturday, January 21, 2006

Buy Gold in South Africa

To buy gold in South Africa is just as easy as anywhere else if not easier.

Actually the Gold Krugerrand was the first gold bullion coin to be produced in an exact 1 troy ounce and sold for the spot price of gold (spot price is the actual value of gold for that day as traded around the world) plus a small mark up to cover the cost of manufacture and shipping.

Actually 1 troy ounce krugerrand contains exactly 1 troy ounce of gold plus a small amount of alloy to increase it’s hardness. The total weight then comes to 1.0909 ounces or 33.9303 grams.

Nowadays, of course one can purchase Krugerrands in smaller values down to one tenth of an ounce.

Krugerrands have been produced since 1967 so there are currently alot of Krugerrands around.

At the time it was introduced, US citizens were not allowed to own gold but were allowed to own foreign coins, so the introduction of the Krugerrand enabled US citizens to own gold after all. Some analysts consider this was the prime reason for introducing Krugerrands onto the market.

Many collectors will feature some Krugerrands in their collection and they are also highly saleable in times of economic need.

If one is in South Africa the purchase of gold Krugerrands is simplicity itself, any coin dealer will have stocks and be able to sell you any quantity you require. The South African Mint does not deal directly with the public but has a number of local and international authorized dealers and one can select the dealers closest to you for your purchase.

If you live outside of South Africa you can still purchase Krugerrands from authorized and reputable dealers in your city or online. And if purchasing online always ensure that the dealer is experienced, has all mediums of contact and a fixed address. Preferably has been in business for many years and, even more preferably, is an authorized dealer from the South African Mint.

Of course, economically it is better to buy 1 ounce coins than the smaller ones due to mark up and shipping costs. But either way, to buy gold in South Africa, or out of it for that matter, is a wonderful pastime whether for investment or just as a hobby.

No comments: