Coins re­main favoured in­vest­ments

Finweek English Edition - - Focus On -

THERE’S NO MID­DLE GROUND when it comes to pre­cious metal coins as an in­vest­ment av­enue and in­vestors know ex­actly where they stand with re­gard to this form of in­vest­ment. Some are life­long fans; oth­ers will never ven­ture there.

Alan Demby, chair­man of the South African Gold Coin Ex­change, says coins do re­main favoured as in­vest­ments and one pop­u­lar of­fer­ing, be­sides the long-time Kruger­rand, is the Nel­son Man­dela Medal­lion. “This year de­mand for the medal­lion has been con­sid­er­ably higher – to be ex­pected, as it’s his 90th birth­day. The Man­dela and De Klerk range of medal­lions are avail­able in a num­ber of de­nom­i­na­tions, in­clud­ing 1oz gold and 1oz sil­ver. The most re­cent release is a quar­ter ounce gold Man­dela/De Klerk “Pied­fort” – which has dou­ble the thick­ness of a nor­mal medal­lion. The low mintage of 1 000 has en­sured a sell-out.”

Demby says the gold bull mar­ket isn’t over de­spite gold re­turn­ing to be­low US$1 000/oz mark. “Much sup­port can be gar­nered for the view that the gold mar­ket re­tains ad­di­tional up­side mo­men­tum. The im­pli­ca­tion is that the $1 000 plus gold price scaled ear­lier in the year was no more than an in­terim peak in an on­go­ing, long-term bull mar­ket and new highs are ex­pected in the months and years ahead.

“Had the pre­vi­ous peak been the top of a long-term bull mar­ket it would likely have been ac­com­pa­nied by a frenzy of buy­ing. How­ever, the $1 000 plus action, while cer­tainly not ig­nored, came and went al­most without a whim­per. Also, gold peaked at $850 in Jan­uary 1980, to be fol­lowed by an ex­tended 20-year bear mar­ket. Given the du­ra­tion of bear mar­kets is in­vari­ably less than that of bull mar­kets sev­eral more years are likely to elapse be­fore in­vestors dis­em­bark from the bull train.”

Man­dela Medal­lion

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.