There has been a strong demand for Krugerrands from the FNB clients on the bank’s trading platforms as the bank assisted in the delivery of more than 2,200 Krugerrands.
The demand for Krugerrands arises as consumers turn to alternative asset classes to diversify their investment portfolios.
Sebastian Pillay, head of Share Investing at FNB Wealth and Investments, said that FNB currently holds over R1 billion worth of coins in its portfolio on behalf of its clients.
“Krugerrands are linked to the international value of gold, which means that the investment is protected from local currency volatility and devaluation,” PIllay said.
This makes gold a global asset class that investors can rely on in a good market environment or in times of uncertainty.
“Moreover, the recent surge in the gold price has led to a significant increase in demand for Krugerrands,” adds Pillay.
Gold has maintained its reputation as a safe haven, even in periods of global market uncertainty and slow economic growth.
Investors choose gold for different reasons.
Some investors purchase gold as a sentimental investment, while those who are cautious about the financial market, choose Krugerrands as a sense of comfort for their investment portfolios.
Krugerrands have been the primary choice for investors when considering getting exposure to gold or often used as a hedge against inflation and currency fluctuations, according to Pillay.
Pillay said: “Krugerrands are highly liquid in the South African market making them a preferred choice among seasoned investors and collectors alike and are considered a legal tender in South Africa, but their real value lies in their gold content.”
“Whether acquired for portfolio diversification, wealth preservation, or numismatic appreciation, Krugerrands continue to perform in the realm of precious metals and serves as a cornerstone investment in precious metals.”
IOL Business