THE OVER­PROMISE OF

CityPress - - Business -

City Press reader Lizo wrote to us about the Robben Is­land gold coins he pur­chased in 2011, which he was led to be­lieve would be a good in­vest­ment. He bought the two com­mem­o­ra­tive 1/10oz coins for R5 000 each from The Scoin Shop (The South African Gold Coin Ex­change) at Clear­wa­ter Mall in Roodepoort, Jo­han­nes­burg.

“I was in­formed I would be able to re­ceive a hand­some re­turn on the in­vest­ment over the next three to five years,” says Lizo, who now finds The Scoin Shop un­will­ing to as­sist him by buy­ing them back.

“The en­vis­aged re­turn on my in­vest­ment is likely to be the ini­tial R5 000 I paid for each of the medal­lions. Had I known that back in 2011, I would not have bought the coins, be­cause the whole pur­pose of the in­vest­ment would have been fu­tile,” says Lizo.

When asked by City Press for a re­sponse, Sean van Ker­ck­hoven, brand mar­ket­ing man­ager for The Scoin Shop, said “own­ing real gold coins and medal­lions, as with other al­ter­na­tive as­sets, is a long-term en­deav­our which is re­liant on con­sumer de­mand for that spe­cific prod­uct at that spe­cific point in time. The ul­ti­mate ob­jec­tive should be wealth preser­va­tion and not spec­u­la­tion.

“At The South African Gold Coin Ex­change, we strongly ad­vise against pro­vid­ing cus­tomers with a prom­ise of fu­ture re­turns on their pur­chases.

“As mar­ket lead­ers, we have de­vel­oped cred­i­ble com­mu­ni­ca­tion that ed­u­cates our cus­tomers on the var­i­ous el­e­ments that de­ter­mine the value of gold coins and medal­lions.”

Van Ker­ck­hoven said The Scoin Shop did not guar­an­tee any re­pur­chases of gold coins and medal­lions from their

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