Top

gold-bullion

Invest In The South African Krugerrand Before Supplies Run Out!

Throughout the 20th Century, South Africa was the world’s largest producer of gold. However, resources are running out and gold mines in South Africa are in decline. The Springboks have already lost their number one slot to China and with gold reserves predicted to expire around 2031, gold prices will rocket.

Time is therefore running out for investors to add the South African Krugerrand to their portfolio. The ground-breaking gold coin was first introduced in 1967 to allow foreign investors to benefit from gold investments and is still regarded as one of the best acquisitions of bullion on the market today.

A brief history of the Krugerrand

The history of South Africa over the last 150 years is intimately intertwined with gold. When the yellow metal was first discovered by Alec Patterson in 1873, South Africa was torn apart by conflict between Dutch and British settlers. The two Boers wars at the end of the 19th Century were essentially a fight for possession of gold mines.

The Afrikaans, led by Paul Kruger were victorious in the first war, and he became the first President of the South African Republic in 1883. It is the head of Paul Kruger that was chosen to grace the gold bullion coins when they were first minted in 1967. The name of the coin also takes its name from the former President and combined with rand, the official currency of South Africa.

When the British revived the Boer War towards the end of the 19th Century, South Africa fell under British Sovereignty and the country soon became the largest producer of gold in the world, accounting for one-third of the precious metal.  Despite valiant efforts from mining companies to locate more gold, it appears gold resources will run out within the next 20 years.

Gold prices to flourish

With a lack of gold supplies demand will increase and gold prices will get higher. Not only that but in the next 15 years we should expect to witness at least one other major crash in the stock market will push gold prices up. And many analysts are predicting the next recession will be even worse than the 2008 banking crisis.

With the US debt ceiling currently supporting almost US$18 trillion, it is only a matter of time before the crisis reaches breaking point. There was a glimmer of panic in September 2013 when the Senate dramatically went on strike until a resolution over the debt ceiling had been reached.

The resulting decision was to raise the debt ceiling until March 2015, until which time US banks have been given a free rein to continue handing out unlimited loans. This directive is only prolonging the collapse of the debt ceiling rather than managing the issue to avoid a catastrophe.

Credit crash

When the debt ceiling come down the credit crash will be even more devastating than the credit crunch. Gold prices during this time will most likely reach all-time highs, and could double in price over the current spot value – which is hovering close to the US$1340 mark.

With the global economy expected to improve during the course of 2014, gold prices will fall, making this an excellent time for investors to cash in on gold Krugerrand coins. Alloyed in 22 karats with a .9167 purity, Krugerrand coins will fetch well over their current spot price once supplies slow-down in around 15 years time.

For the latest price on gold krugerrand coins head over to coininvestdirect today and cash in on the security of your financial future.

, , , , , , , , ,

Comments are closed.
Web Analytics

Clicky