What is a South African Krugerrand

Gold IRA Frequently Asked Questions

What is a South African Krugerrand

There is no precious metal investor that hasn’t come across the term South African Krugerrand. So what is a South African Krugerrand this is the question I will answer here for you. 

What is a South African Krugerrand

A South African Krugerrand is a gold bullion coin produced in South Africa. The first Krugerrands produced were back in 1967. It was a co-operation between the South African Mint and a precious metals gold refining company. 

The reasons the South African government decided to mint bullion coins were to promote gold to the world, to support their booming gold mining industry, to promote gold to the world, and to make gold accessible to the public in general.

The krugerrand took its name from South Africa’s first Boer president Paul Kruger and Rand. Rand is the country’s basic unit of currency.

The coin depicts the face of Paul Kruger on one side and on the other side, it depicts the springbok, one of South Africa’s national symbols.  

The South African krugerrand is a gold coin designed to follow the price of gold. As a result, its price follows the price of gold.   

Krugerrand Facts

  • South Africa started minting gold bullion coins (Krugerrands) back in 1967
  • Krugerrands were massively produced in the 1980s
  • Krugerrands are still very very popular among gold investors
  • Not an aesthetically attractive coin but, an honest and durable coin meeting all bullion standards
  • Since 1967 over 50 million ounces of South African Krugerrands have been sold to investors and collectors
  • Krugerrand is considered to be a legal tender in South Africa

South African Krugerrand History

1967 was the year South Africa introduced Krugerrands to the rest of the world. Although in the US owning gold was illegal, the American government allowed its citizens to own foreign coins. As a result, Krugerrands became popular in the States. 

krugerrandIn 1971 most western countries started imposing sanctions against South Africa because of apartheid. Throughout the 1970s and 1980s most western countries one after the other imposed sanctions against South Africa.

In 1970 South Africa was the number one gold producer globally. In fact, South Africa mined over 75% of the yellow metal worldwide. It was an easy task for Krugerrands to become the number one investment choice for gold investors.  

In 1980 the South Africans introduced three more sizes of the bullion coin. They were 1/2, 1/4, and  1/10, a.of an ounce size. 

Krugerrand suffered from these sanctions. In 1985 the United States banned Krugerrand. In 1994 apartheid was abandoned and consequently, the west lifted its ban. By that time the Krugerrand had lost its place as the number one choice for investors. 

In 2000, investment gold became tax-free in the EU and the UK. Consequently, there was a demand increase for bullion bars and coins including Krugerrands.

During the 2008 financial crisis, Krugerrands became popular again among investors. The South African coin became popular worldwide and in the US until 2011. Those years investors bought millions of Krugerrand coins.   

 How are Krugerrands Manufactured

Krugerrands were designed to be tough. That is why they contain a small amount of copper. The coins are manufactured to weigh more than an ounce because an ounce of gold which is 91,67% of the coin and 8,33% of copper totals 1 and 1/11 ounces.

The copper added makes them tough and resistant to scratches compared with other gold coins that are made of pure gold. That toughness and durability are what make them so popular among gold investors. 

Krugerrands Huge Success

The krugerrand is by far the world’s most popular gold coin. Over the years It has sold over 50 million ounces of gold. In the 1980s it accounted for 90% of the world’s coin market. 

To grasp krugerrand’s huge success all we need is to take a look at the American Gold Eagle, an immensely successful coin that has sold over 20 million bullion in coins. That is well below the South African Krugerrand.

The Krugerrand Now

After the 1995 South African sanctions were lifted by the world, the krugerrand never fully recovered. South Africa is not the world’s leading gold producer anymore. As a consequence, the krugerrand doesn’t sell like hot cakes as it used to. However, in 2018 with investors flocking to buy gold, the Krugerrand became very popular again. 

The revived popularity of gold followed by the large increases in gold bullion prices led the South Africans to introduce the silver Krugerrand coin. That was in 2018. The Krugerrand silver coin has 99,9% purity and it has the same design as the original gold Krugerrand coin.     

Nowadays Krugerrands are still very popular among investors. They combine durability and are easy to store in small sizes. They appeal to both professional and private investors who want to invest in physical gold or silver. If you want to invest in Krugerrands make sure you do it through a reputable dealer.    

Investing in South African Krugerrands

Investing in gold is paramount for serious investors. That is because gold is a non-correlated asset and with gold, portfolio diversification can be achieved. 

The krugerrand is the coin you will find available in any gold broker together with the American Gold Eagle, the Canadian Maple Leaf, the Australian Kangaroo, the British Gold Sovereign, and many others. It is my favorite gold coin because it is different and because it is durable. 

Investors are buying physical gold because they want to safeguard their savings, protect themselves from the fluctuations of the dollar, protect their savings from geopolitical uncertainty and war, and to protect their savings from the oncoming economic crisis.

I hope my what is a South African Krugerrand post got you covered. If you have any further questions or queries feel free to write a comment and I will get back to you.

============>Press here to check Regal Assets the premier gold coins and bars dealer. 

 

 

 

Palladium Comes Back

Palladium Comes Back

Palladium prices increased on Monday, settling within the $2,200 cost range, as the US dollar continued to drop for the fourth straight day. It looks like palladium comes back.

Palladium attracted assistance just recently by capitalists’ hopes about encouraging coronavirus injections, which will most certainly stop any more lockdowns and also support the recuperation of economic activity to pre-pandemic levels.

Amidst many countries’ measures to relieve the coronavirus lockdowns, the global supply is decreasing of the metal that is greatly used in the production of cars and truck parts as well as parts that decrease pollutant emissions.

The buck index fell against a basket of money by 0.1% to 92.9 points since 13:23 GMT, after hitting a high of 93.1 and a reduced of 92.8.

Palladium September futures dropped 3.2% to $2,212.9 an ounce as of 13:25 GMT, after hitting a high of $2,233 and a reduced of $2,144.4.

How to Invest in a Gold IRA

Introduction

How to Invest in a Gold IRA
Gold Bars

Gold is a precious metal that has been used in the past as money. Many wealthy families invest their wealth into gold, to preserve it as gold always held its value and it was considered as good as money. Nowadays, investing in a gold IRA is a must. In this article, I will show you how to invest in a gold IRA.

What is a Gold IRA?

A gold IRA is an individual retirement account, an account that functions the same way as a regular IRA account however, instead of holding paper assets, it holds physical bullion coins or bars.

Why Invest in a Gold IRA?

There are several reasons to include gold in an IRA account, some of them are:

  • To protect and preserve wealth from unexpected events. Covid-19 is the best example here.
  • A hedge when the stock market is not expected to do well. For several months there has been a stock market downturn. Thus, most investors have seen their life savings decimated. However, those who had their savings invested in gold are walking the streets with big smiles on their faces.
  • Portfolio diversification. It is not prudent to put all eggs into one basket. A smart investor always spreads his/her savings into different types of investments that are not connected. (Bonds, real estate, stocks, precious metals, and so on.)
  • The weak dollar. I am afraid the dollar will continue to lose strength. Although the decision by the government to print trillions of dollars is the right decision, it will ultimately cripple the dollar’s price.
  • Loss of confidence in central banks. Over the years governments and dirty politicians manipulated central bank policies. In addition, central bankers just watched them without doing anything about it.
  • Geopolitical uncertainty. (Middle East, Brexit, ISIS, North Korea, Hong Kong.) Even though ISIS has lost ground, it is still around. The middle East is in turmoil, North Korea has started creating trouble again, Brexit is postponed and in Hong Kong, the conflict is back.
  • The US-China trade war. The US-China trade war is not over yet. In fact, it is turning out to a financial war between the two superpowers
  • Gold has never lost its value due to war, mismanagement, corruption, theft, inflation, economic and financial crisis, while stocks have.
  • Gold is a tangible asset that can be converted to cash easily.
  • Low or negative interest rates. Most central banks around the world have adopted a negative interest rate policy. That means, your dollar is losing value every single day.

Steps Needed to Invest in a Gold IRA

1-Set Financial Goals for Your Future

It is important for all of us to establish financial goals for our retirement. In my case, am not willing to restrain myself in a lifestyle totally depending on welfare or a small pension. Nobody wants that.

To plan for the future you need to know where you are today, where you want to be, how you are going to get there, and how much is going to cost you. Nothing is free in life.

Your retirement plans could change over time, as your income and knowledge grow. Thus, your plans will need to be flexible in order to adapt to these changes.

2- Choose Between a Rollover, a Transfer, or a Fresh Start?

Once you’ve established your retirement goals, you will have to decide what is better for you. A fund transfer, a fund rollover, or a fresh start with an entirely new Self Directed IRA account.

A rollover is when the money is moved from the current IRA account, perhaps to an account that offers more benefits security, and flexibility, is paid directly to you and you will have to deposit the money in the account that you want. Be cautious there, you will have two months to transfer the funds otherwise your funds will be taxed by the IRS.

A transfer is when the custodian transfers the money directly to the new custodian. In this case, you never see the money and there is no reason for the IRS to tax you as the funds are never made payable to you.

A new Self Directed IRA is also another option. You do not have to close your existing IRA account. In fact, the IRS allows for several IRA accounts as long as your combined contributions do not exceed the annual limit set by the IRS. The process is fast and easy, and your IRA Account specialist will be there to help you every step of the way.

3-Find a Custodian

To have your funds invested in physical gold or other precious metals, the IRS requires you to open an account with an approved custodian. Therefore, you will have to make your own research to find and choose which custodian you want to deal with.

This could be a headache for the ordinary folk but, companies such as Regal Assets are already dealing with the most reputable custodians and can actually take care of that on your behalf. They will actually set up your IRA account and coordinate with your current custodian to transfer the funds.

4-Safe Bullion Storage

According to IRS regulations, you cannot store your IRA precious metals bullion at home. It must be stored in a reputable precious metals storage facility. A precious metals storage facility or depository is a third party that specializes in precious metal security. You can always visit to see and hold your assets at the depository, but as long as they are held in the IRA you cannot take them home.

Regal Assets will organize the discreet transfer and safekeeping of your gold IRA in a depository on your behalf. In fact, Regal Assets partnership with Brinks will offer you segregated storage in several depositories in North America and Singapore.

5-Relax Your Savings are Safe

Once the whole process is finalized you will not have to worry about geopolitical uncertainties, trade wars, financial turmoil, or even the price of the dollar. In addition, a self-directed IRA gives you the flexibility to continue investing in other areas such as real estate or stocks.

Traps to Avoid

How to Invest in a Gold IRA
Roadsign

Every time there is an issue that involves your hard-earned money, you must be diligent. Fortunately, when it comes to IRA investing, the rules and regulations set by the IRS are strict and there is little room left for any mishaps.

Nonetheless, there have been cases where investors were scammed or cases where due to mistakes, cost investors a great deal of money.

1-Not all gold coins are IRS approved for an IRA account. If you happen to purchase the wrong precious metals coins your IRS account will not be valid. You will have to sell them back and then purchase the IRS approved coins. In the end, this will cost the investor money. To see what coins are approved by the IRS press here.

2-A rollover situation could also cost the investor a great deal of money if he/she takes over the two months limit to place the funds in the new IRA account. In that case, the IRS will impose taxes on the funds which the investor will have to pay.

3-Overpriced costs. The investor should check charges such as storage fees, shipping costs, administrative fees, and storage conditions. Some companies have a high fee policy for no particular reason whatsoever. They could be annual storage and administration fees and the shipping costs could be huge. These annual fees vary from broker to broker but, they all add up year after year.

>>>>>>>>>>Regal Assets offers the lowest fees in the industry, to read my Regal Assets review press here

The easiest way to avoid traps is to deal with a reputable gold IRA broker. A broker who’s been around for a number of years with tons of experience has earned the respect and trust of its clients.

How to Choose the Right Gold IRA Company

When it comes to choosing the right gold IRA company one must consider the following:

1-Check out the comments regarding the firm, especially the complaints, see how these complaints were handled. If there is a long list of complaints, that will be a sign to worry about. Also, take a look at the number of years the company operates, you want ten years of solid record. Finally, most important is to choose a firm with a commitment to keeping you informed. Keeping you informed now and in the future. If a salesperson gives you short shrift or hits you with a high sales pitch, consider this bad news.

Final Words

If you are seeking peace of mind, security, and protection from unexpected events then, a gold IRA could be the solution. Keep in mind, the stock-market downturn has cost trillions of dollars in the last few months.

Consider this, if you had purchased $33,000 of gold in 2001, you could sell that gold today for around $129,551.12 That’s over 300% return on investment! Has your current retirement account performed as well as a Gold IRA would have?

>>>>>>>>>>Regal Assets are the market leaders in gold IRA to find more about Regal Assets press here to read my Regal Assets review.

>>>>>>>>>>to get your free gold investment kit and a free 10-year anniversary silver coin press here

-What Is Gold Investment?

-What Is Gold Investment?

-What Is Gold Investment?Of all precious metals, gold has been the most popular as an investment.  Although the gold market is also subject to speculation and volatility as are other markets, investors invest in gold, to diversify and reduce risk, especially through the use of futures, contracts, and derivatives due to the fact that gold has shown to be a hedge against inflation and economic uncertainty.

Every time there was political and economical instability, gold was called upon to save the day, and it actually did that.  When paper currency losses its value and global inflation starts rising, gold offers security and acts as a safe haven for investors.

Common people invest in gold, investors invest in gold, banks invest in gold, governments invest in gold, even countries invest in gold.  Recently countries such as Russia and China, are buying large quantities of precious metal.

People invest in gold for their own reasons.  Some do it to preserve their own wealth, there are others who do it to actually increase their wealth and many managed it in the past, with much success.

Political turmoil and geopolitical uncertainty is something the markets hate.  The Trump election victory, the negotiations for Brexit, the upcoming elections in France, and Germany the political turmoil in Turkey, the instability in northern Africa and the Middle East make gold an attractive investment.

At the same time inflation is starting to rise and gold loves that.  In addition, the dollar is still weak, the stock market is overrated and the US debt crisis is out of control.

Supply may also be an issue because gold is not inexhaustible.  Many mines close, but the new mines that open are always fewer.  On the other hand, industrial demand for gold is on the increase, especially in technology, computers have gold, and so mobile phones and many electrical appliances.

Due to all reasons analyzed above, gold as an investment is at its best now.  The advantages are too many and are overwhelming.  This, of course, is my personal opinion.

 

-Six Reasons To Buy Silver

-Six Reasons To Buy Silver

-Six Reasons To Buy Silver

Here, I present my top six reasons to buy silver.  Investors I believe, are looking down on silver compared to gold, and other types of investments. If you go through this post you will see silver is undervalued therefore, a great opportunity to invest.

Silver is affordable

As we speak, silver sells at $18,36 and gold sells at $1256,94 a troy ounce therefore, an investor with $10.000, can either get 544 ounces of silver, or 8 ounces of gold.

Silver is real money

Although silver is not part of our currency, along with gold is the ultimate form of money, because it can’t be created out of thin air, like paper money or digital coins.  I am talking about silver in physical form, no ETF’s futures or certificates.

Growing demand falling supply

There is a growing demand for silver globally.  China’s and India’s appetite for silver is growing and at the same time industrial demand is growing too.  At the same time the last couple of years, silver production has peaked and soon supply will not be meeting demand

Silver outperforms gold in a bull market.

The silver price increases more than gold in a bull market.  Historically, silver is more volatile than gold.  If you think there is going to be a bullish market for gold and silver, then it will be better to place a fair amount of money on silver.  In the 1970’s bull markets for silver and gold, the silver price rose 3800% compared to 2500% to gold.

Silver is undervalued compared to gold

Industrial uses for silver are abundant, from electrical  uses to photographic developments, silver may be one of the most useful metals to man.  The applications and uses for the precious metal are always growing.  Silver prices per ounce are well behind gold’s.  In particular, today for an ounce of gold you need 62 ounces of silver and that is three time higher than in the past, where you could get an ounce of gold with 20 ounces of silver.

Silver is an important diversification and a tangible asset.

Silver like gold, is a precious metal asset and it acts as a hedge against inflation.  Silver and gold, are rightly viewed as a safe harbor in times of crisis, therefore, investing in silver is necessary for portfolio diversification.  Silver like gold, can also protect against geopolitical uncertainty,  unstable economy, and weak currency.  Silver like gold, is a great way for an individual to preserve his/her own wealth.

CONCLUSION

Investors from all levels are attracted to silver, as a solid tangible and long term store of value.  Nevertheless, silver is heavily undervalued when compared to other commodities, and is also undervalued compared to gold.  Many analysts believe silver could be the bargain of the century.