Gold and Krugerrands attract investors
The recent good results from gold mining companies have focused the attention on the quiet increase in the gold price to the highest level in five years, as well as the weakening in the rand against the dollar to the worst levels since 2016.
Gold coin devotees would have noticed that prices of their beloved coins – in rand terms – are setting new records.
The gold price has increased from around $1 150 per ounce in November 2015 to more than $1 526 this week, the highest in more than a decade, except for a few days in August 2011 when gold exceeded $2 000 per ounce. The decline in the rand over the same period has seen the rand gold price increase to a record of nearly R24 000 per ounce compared to just over R7 000 at the beginning of 2010.
The world’s most popular gold coin, the Krugerrand, has obviously mirrored this increase.
It also raises the question of whether it is still worthwhile to buy a few coins after the strong rally of the last few months.
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