Gold has excellent physical propertiesGold’s physical properties are very important. The physical properties allow the metal to act as a store of value and can be used in multiple industries. In order for a commodity to be a good store of value it has to be relatively rare and expensive to produce. A store of value cannot be toxic or radioactive.
Gold is one of the most useful metals as it is a good conductor of electricity and is virtually indestructible. Gold is used in many industries such as jewellery, electronics, dentistry and computer. Gold is the ideal vehicle to save since it ticks both boxes of being relatively scarce and in demand.
Gold is a hedge against inflationDue to varying economic data and political unrest, the economic stability of countries may differ from time to time. Enters inflation that directly affects the purchasing value of money. So how does one protect or safeguard your financial portfolio against inflation? Unlike money supply, Gold cannot be printed and there is a limited supply. This creates an opportunity for rising gold prices when inflation rises. Seasoned traders will use Gold’s negative correlation to the U.S. Dollar to profit when the price of the Dollar crashes.
Gold industry has less scamsIt is relatively easy to test if Gold is genuine. A simple acid test will quickly tell a prospective buyer if the Gold is genuine or not. With a special touchstone, the colour and quality of Gold’s scratch marks can be used to determine the quality of the metal. If you know how to use these tools to determine the authenticity of a piece of Gold, you are less likely to be scammed into buying a fake piece of Gold. Unlike with other financial products and services, it is not that easy to scam someone into buying fake Gold.
Gold forms part of a diversified portfolioHaving a diversified portfolio can help you save money. Historically, Gold has always formed part of a diversified portfolio since it reacts the opposite to traditional markets. Should the stocks or bonds you invested in fall, the Gold price typically rises and vice versa. The key word here is correlation.
Gold is VAT freeSave even more with Gold as there is no VAT payable on Gold Krugerrands in South Africa. So, how does one buy Gold in South Africa?
The RAND Refinery and South African Mint are two reputable companies. However, at the time of writing, the RAND Refinery is operating at ‘reduced capacity’ for the duration of the COVID-19 lockdown period. The RAND Refinery as well as the South African Mint have stated that they would resume non-essential manufacturing activities after lockdown has ended.
Rest assured that it is business as usual at AltCoinTrader. Buy and sell Gold and Silver Krugerrands on South Africa’s favourite exchange. AltCoinTrader offers competitive prices and a safe and secure platform that is extremely user friendly.