LIMITED EDITION GOLD

LIMITED EDITIONS - GOLD and SILVER

Each year the SA Mint issues a limited supply of limited edition collectable gold coins under instructions and permission of the SA Reserve Bank and Parliament. These limited edition gold coins are distributed and allocated to coin dealers in the country who offer them to collectors and investors.

Why Limited Edition Gold Coins?

•  Minted in very low quantities and have a collectable quality and value.

•  The greater the rarity and the more its popularity, the greater the    

    demand.

Limited Supply

In most cases the supply and availability of popular limited edition gold coins cannot keep up with the demand therefore a constant rise in the value of these coins is imminent over time. We refer to newly issued coins as the primary market.

 

Value

The value of a limited edition gold coin is mainly determined by two factors. The intrinsic gold value and the rarity when issued on the primary market. The intrinsic gold value of a limited edition gold coin is on its highest close to issue date  whilst the rare value is at its lowest due to primary supply (SA Mint). As we move on in time primary supply runs out and is replaced by secondary supply (The whole gold coin market which include dealers and investors). $ Gold price and R/$ exchange rate studies have shown that limited edition gold coins are mostly not exposed to fluctuations in the $ Gold price nor the R/$ exchange rate on the secondary market. Prices are mainly determined by supply & demand balances in the market of which the supply side remains the lesser of the two.

Holding Period

We advise clients to hold their coins for at least 4 to 5 years after which the collector or investor could consider liquidating and reinvesting (Capital and profits) in different rare coins depending on the growth cycle to establish optimal and compound growth. Remember ‘supply and demand’ determines all prices.

Liquidity

Dealers, collectors and investors in the open market trade limited edition gold coins on a daily basis. At any given time a client can ask for a bid price of the particular coin and realize profits.

Conclusion

It is quite clear that any investor or collector should consider physical gold as an investment diversification in his/her current portfolio of some sort. In most cases the most diverse and good performance option is limited edition gold coins.

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