Coins remain favoured investments
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.”