Morning forum. What is the easiest way tp purchase Gold - either in bars or Kruger Rands? And does Gold EFTs match the value or growth potential of actual Gold (bars / Kruger Rands) - or does the Gold EFT just track the Gold price?
This may sound fairly market / SA negative (which I certainly am not) - but at least you can pack your Kruger Rands and go somewhere else and they retain value. Bummer if all you had as investment was Zim Dollars 5 years ago.
Many thanks Kwagga - I hold a bit of MTX (bought ages ago) - so have done really well on that. Maybe a better way of putting the question would be: I want a Rand Hedge that will pay out in foreign currency (should I require) that is both tangible and easy to get hold of? The easiest I could think of was Kruger Rands. Are there any others? I hope this is not a stuoid question.
ETF is good. If you want the real thing, buy from a reputable dealer. Usually they charge the spot rate + R200 for purchases and the spot rate - R200 for sales, ie when you want to purchase or sell. With the ETF, you pay commission on the purchase and sale and in theory the ETF doesn't go up as quickly as the gold price because the people who run the ETF (ABSA in SA) take some commission (for payment and insurance) for looking after the gold for you. So in a static world with a gold price at R6000 for a year, at the end of the year the gold value would still be R6000, but the ETF value would be less. In a rising market like the one we have, you can't see this effect. Note that in SA you buy physical gold ex VAT and you cannot buy gold bars, not that most people can afford them at I'm guessing around R3 million per bar. Note also that there is an acid test (using real acid) that allows you to check if gold is real. If anyone knows where one can get this test, please let me know as I've been looking for a kit. I'm in Cape Town.