THE OVERPROMISE OF
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