First National Bank (FNB) will be the first bank to sell Krugerrands online, partnering with Rand Refinery so they can be sold on its online share-investing platform.
Krugerrands are typically purchased at retail coin outlets. This presents a security risk for the purchaser, who must transport the coin and also find a safe place to store it at home.
FNB is now offering ownership of physical gold with safe custody and a guaranteed buy-back offer if the coin's held securely at Rand Refinery. You can have custody of the coin if you wish--the choice is yours.
The idea is to enhance FNB's share-investing platform through the offer of an exciting asset class, namely gold. FNB hopes to make investing in gold easy and hassle-free, says Gusta Binikos, CEO of FNB Share Investing. Gold is considered a "safe haven" asset because it's a secure, stable asset class and a good hedge investment tool that can provide good long-term returns.
You will have the choice of trading Krugerrands through online and call-centre channels--the latter have been set up as some customers prefer to speak to a person when investing. FNB offers investor education on gold and Krugerrands on its website.
Today, a one-ounce Krugerrand coin is worth about R10000. In 2001, the same coin would have cost you about R2000. During 2010, the price of an ounce of gold grew by 29%. So the wealth-creating properties of Krugerrands can't be underestimated. Made from 22-carat gold, they're sought after for their intrinsic value and there are over 46 -million ounces of coins in circulation. They're the most popular traded coin in the world today.
FNB will sell the full range of Krugerrands, ranging from 1/10, , , and full one ounce coins.
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