BLUECHIPINVESTMENT |
BLUECHIPINVESTMENT | GoldGold’s enduring value:Proof Krugerrands as a strategic assetIn an era of economic uncertainty and market volatility, your clients seek assets that providestability and resilience.Proof Krugerrands, South Africa’s iconic gold coins, offera compelling solution. These coins are not merely gold– they are a strategic hedge against inflation, currencyfluctuations and geopolitical risks, delivering a robustlong-term store of value with distinct tax advantages.A timeless hedge against uncertaintyGold has long been a beacon of stability in turbulent times. Itthrives when inflation erodes purchasing power or when therand faces pressure from global or domestic forces. South Africans,accustomed to navigating currency volatility, recognise gold’sability to preserve wealth when fiat currencies falter. Historicalcrises, such as the 2008 financial meltdown or the economicdisruptions of the Covid-19 pandemic, underscore gold’s role as asafe-haven asset. As supply chains strained and markets wavered,gold held firm, reinforcing its status as a reliable anchor duringeconomic storms.The unique appeal of Proof KrugerrandsProof Krugerrands stand apart as a premier choice for discerninginvestors. Struck with meticulous craftsmanship, these coins aredesigned for those prioritising long-term wealth preservation.Their status as legal tender in South Africa unlocks significanttax advantages. Unlike silver coins, international bullion or goldjewellery, which incur a 15% VAT charge, Proof Krugerrands areVAT-exempt. More crucially, as collectables, they are exempt fromcapital gains tax (CGT). This means any appreciation in value,whether sold or transferred, remains untaxed, a rare and powerfulbenefit in a heavily taxed financial landscape.Consider the numbers: in 1967, a Proof Krugerrand could bepurchased for approximately R35. Today, that same coin commandsupwards of R100 000. This remarkable growth illustrates thepotential for appreciation and the coin’s ability to safeguard wealthagainst economic and inflationary pressures over decades.Liquidity, portability and practical considerationsProof Krugerrands offer unmatched liquidity and portability,making them a versatile asset. Recognised and traded globally, theycan be sold or exchanged with ease in markets from Johannesburgto London, though larger transactions may require navigatingSouth Africa’s exchange control regulations. Storage options – athome or in a secure vault – are manageable with proper guidance,though storage and insurance costs need attention.Gold, including Proof Krugerrands, is not without limitations.Unlike equities or interest-bearing bonds, it generates no income;its price can fluctuate in the short term. Yet, as a hedge againstsystemic risks or a cornerstone for intergenerational wealthtransfer, its value is unparalleled.HeritageSouth Africa’s gold legacy, woven into its economic fabric, amplifiesthe allure of Proof Krugerrands. They offer tangible ways to helpclients protect wealth across generations, standing firm againstmarket downturns and global uncertainties.A strategic asset for your clientsWhen advising high-net-worth individuals or families, ProofKrugerrands present a sophisticated portfolio diversification tool.Their tax exemptions, global tradability and enduring value makethem an attractive option for clients seeking to mitigate risks inan unpredictable world. Whether shielding assets from inflation,currency depreciation or geopolitical instability, these coins delivera disciplined, long-term approach to wealth preservation.Proof Krugerrands remain a steadfast choice in a financiallandscape marked by volatility and complexity, anchoring resilientportfolios and offering a trusted shield for future generations.Rael Demby, CEO, The South African Gold Coin Exchangeand The Scoin ShopThe information in this editorial is provided for educational and informational purposes only and does not constitute financial, tax, legal or investment advice. We recommend consulting with yourindependent financial advisor, tax consultant or legal expert to ensure your personal circumstances and regulatory obligations are properly addressed.48 www.bluechipdigital.co.za
BLUECHIPWHEN YOUR CLIENTSSAY GOLD, THINK SCOIN.Proof Krugerrands—premium gold coins trusted by collectors worldwide. Offer your clients a timeless, tax-effi cientasset to hedge against infl ation. Collect, store, or sell anywhere, anytime—no management fees, no fuss.T’S & C’S APPLY011 784 8551 SCOINSHOP.COMHEAD OFFICE 12TH FLOOR, TOWER 2 AT THE MARC, 129 RIVONIA ROAD, SANDTONGAUTENG SANDTON CITY•EASTGATE MALL•BROOKLYN MALLKZN PAVILION MALL•ATHLONE CIRCLE•GATEWAY MALLWESTERN CAPE CANAL WALK•SOMERSET WEST MALLEASTERN CAPE WALMER PARKSCAN THE QR CODETO LEARN MOREABOUT PROOFKRUGERRANDSTODAYDISCLAIMERThis is for informational purposes only and not fi nancial, tax, or legal advice. Consult your advisor for personalized guidance. We are not licensed fi nancialadvisors but can refer you to trusted professionals. You are responsible for any tax or customs obligations.
