Why Gold Krugerrand is A Safer Investment

Written by admin on October 29, 2008 – 2:37 am -

We all invest our hard earned money some where or the other. Some prefers to do it in real estate, others in stocks, shares bonds etc. The current time is of uncertainty and we don't know what will happen and when. The prudent investors have turned towards gold which is a safer form of investment.

Many investors could be seen putting their savings in gold Krugerrands. The investment in gold has risen by a huge amount according to the World Gold Council. Many investors suggest that buying Gold Krugerrands are safe and long term investments. There are many Gold coins available in the market but the most popular ways to invest in gold is to buy Gold Krugerrands.

Gold Krugerrands are available in various sizes such as 1 Troy Oz, half an ounce, one fourth ounce and one tenth ounce. They have .917% pure gold. One can buy them fro online auctions. They can be bought easily in greater quantities compared to others and can be bought at lower prices. If we were to compare the Gold Krugerrands with other they coins they are neither of any historical significance nor do they look nice. But what matters is that they are an excellent source of investment and are very popular.

The question that comes in every investors mind is that are Gold Krugerrand a safe option? Yes they are a safe option if one takes some precautions. One should look at the feedback given buy the customers to the dealer. One should buy from only those dealers who have a 100% feedback. With today's soaring gold prices the Gold Krugerrand is a good investment. They are available at a premium of 4-5% over the intrinsic gold values. If one is buying single pieces then they will be at 10% premium.

If one had bough a Gold Krugerrand in January this year it would have cost him approximately $846 an ounce but just six months later its value gas risen to $1000 and this is expected to reach $1100 by the end of this year. That is around 30% growth over one year.


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What’s the Current Krugerrand Value

Written by admin on October 29, 2008 – 2:32 am -

In1967 the government of South Africa decided to increase the marketing of South African gold so they minted the Gold Krugerrand. This coin was the first of its kind, which makes the gold Krugerrand one of the most popular items among gold investors and collectors. The Krugerrand value went up accordingly. So what's the current Krugerrand Value?

As investors see the uncertainty in stocks they try other investments like the Krugerrand. The prices of gold have been increasing since the start of this year. In January this year gold was about $846 and then in a time of just six months it reached to $1000. It is expected to go up to $1100 by the end of this year. Resulting in a growth of 30% these coins are generally sold at a premium of 4-5%. If one buys a single coin then it will be at a premium of 10%.

These days there are more than 54 million Krugerrands all over the world. These Gold Krugerrands are durable and are alloyed with a small amount of copper. This makes them 22 karat coins. They contain 11/12th part 24 karat gold and the other 1/12th part is copper. Copper makes them hard. Thus they become resistant to denting and scratching and getting damaged easily. They are also easy to transport and store which increases the Krugerrand value in every other sense also. It served as a prototype for other gold producing nations to launch their own such gold coins.

The Krugerrand value is calculated on the “spot price” and additional premium per coin. The spot price of gold is reported every business day. The spot price can be checked in news papers, on the radio, on the TV and even online. The Krugerrand value depends on the size of the coin also. It is available in one ounce, half an ounce, one fourth an ounce and even one tenth an ounce. What remains same in all of them is the purity that is .917.

The current Krugerrand value is $939.33. This coin is 33.930 grams and weight and 32.77 mm in diameter. The current market trend shows that the Krugerrand value will increase keep increasing thus making it a safe investment.


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