Physical Gold in a world of Cryptocurrency Currencies

in investment •  2 years ago  (edited)

Physical Gold Coins ( Krugerrand ), do they still have a place?

I wrote this post on my website not long ago, but since joining steemit recently, I thought it might be worthwhile revising it.

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Krugerrand's was first minted in the late 1960's, and in a very short time span became a very popular way for the ordinary man to invest in and own physical gold, both in South Africa and internationally.

Buying Krugerrand's are easy today, with many businesses selling Krugerrands. You get different sized Krugerrand's namely, 1/10th ounce, 1/4 ounce, 1/2 ounce and then the full 1 ounce coins ( 33.93 g ).

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Krugerrand's selling prices range from between gold price + 12% to gold price + 20%, making them the most affordable gold coins on the market.

As of late, and as with any high value coins, there are fakes out there, so do be cautious from where you purchase your gold coins from.

Krugerrand's are classified as bullion coins, meaning their price is almost exclusively linked to the gold price, unlike proof gold coins and other gold coin sets which tend to sell for much more than their actual gold value, which does not make them nearly as appealing as the #Krugerrand for short to medium term investment.

With the rise of #cryptocurrencies, does the Krugerrand retain it's investment appeal?

I believe the Krugerrand will keep it's investment appeal for the next few years

I say this from past & present experience, there are a lot of people still buying these coins and keeping them, waiting for the gold price to rise again.

They also feel its a 'safer' investment since they get to store their gold coins with them.

I would love to hear from you what you think of physical gold coins vs cryptocurrencies

thank you for reading this article.

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Gold bullion and silver bullion are still "deep storage savings". Cryptocurriences may be the new currency, but are still being adopted.

Gold and silver should be considered to be in the 1933-1971 timeframe for most people, including Americans, Europeans, East Indians, Africans, etc. Instead of the US/UK/Cabal governments making physical gold and silver illegal, since 2012 they have made sure to make them "too expensive to buy, but not expensive enough to live off of". Thanks to currency printing, there is no money at this present moment that is an appreciable fraction of all the printed fiat in the world. Not one. This is why people talk about $20,000 gold and $600 silver, and that would only be a 5% backing of the trillions of digital book-entries made by the US/UK/Cabal governments.

So if we are living in a repeat of the 1933-1971 outlawing of gold for all practical purposes, where the daily price is manipulated to look bad against US treasuries, the US bond market, the US stock market, and even interest rates, people will naturally seek an alternative. If that alternative is a decentralized Internet-dependent blockchain algorithm outside of the normal banking web, so be it.

  • Wouldn't you like to cross an international (or in some cases, a state) border without law enforcement confiscating your cash, your gold, your silver, all in the name of the War on Drugs and/or the War on Terrorism?
  • Wouldn't you like to gain interest on your savings that is not dependent on a government that is over-indebted and using its' power to keep inflation stoked above 9% a year, yet denying that inflation to its' citizens' savings and purchases?

So if you want to put a fraction of your savings into crypto-curriencies, go ahead. If you want to put a fraction of your savings into gold or silver bullion, go ahead. You will have to do your own due diligence and research. This is not for the lazy. You will have to devote a sizeable portion of your life to learning the rules, the ins and outs, the way to profit using both methods.

The alternative is allowing others to dictate what your financial, and thus entire, life will be.

To a dictator, freedom is treason. To a rapacious government desperate for any kind of tax revenue, savings outside of the system, be they physical assets like gold or silver, or digital currency not US dollar-backed, are both frowned upon. Treated with contempt and suspicion. Derided against. And, ultimately, outlawed for the "common" (their common) good.

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Very nice reply, and very true.

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I agree with all of that, @jhpace1, but if one really does want a "deep storage" option of precious metals, he or she can buy bullion with low premiums and just store it safely away, with no worries. But be prepared to "learn on the run" in the future possibly. Cryptos, on the other hand... Learning Curve! :D

Follow for you and goldandcoin...

#steemsilvergold would be great for this post, OP
There is a large group of us that seek out this topic!

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WELCOME, @goldandcoin!!!
I hold quite a bit of Silver, but would like some Gold as well. The RAND looks to be one of the prime candidates, they have been doing it longer and better than most! It's a more durable coin, due to the small alloying percentage of Copper, and that is a plus if one expects it to be used in an SHTF/TEOTWAWKI scenario. I may start with some 1/10 ozT coins. They are tiny but valuable!

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you are quite right, I think the biggest draw is the price, not much more than actual gold price, so very good for medium to long term investment.

thank you for your super comment.

Investing into Gold or Silver vs crypto is much dependent on ones finances.
I would suggest after having the basic needs to survive any kind of , say "Bank Holiday" or economic or natural disaster situation, either way, have your basic, which unfortunately, many are living paycheck to paycheck.
So I ask you, aren't we already in a crisis? Health care, unemployment, millions on welfare.
So when I see people talking about which is the best to invest into, I say if you can Silver is the most undervalued asset right now, its cheap enough to buy little at a time, Gold is an excellent buy, really love the Krugerrand!
Gold can be bought in grams to ounces, They Perth mints 5 grams are another great buy' or if you could a 1/4 ounce round such as an Gold eagle is nice.
The Krugerrand is especially sweet.
When you talk cryto, I have to believe its here to stay, I would also suggest in buying in at a little of a few, such as bitcoin, and what ever alt-coin you think may break out or hold value, right now I like Etherium and litecoin, but there are so many, its a risk no matter what.
Basically I look at it, such as this:
Gold = medium risk high reward, reason gold can still go lower, but eventually will go up much higher.
Silver= low risk high reward, silver cannot go much further down without miners taking more of a loss at almost production prices.
Cryto= High Risk unknown reward, you may be a millionaire or you may lose it all.
Bottom line Gold and silver are not going anywhere, now if the governments outlaw silver or Gold, which the have done before , still people held onto some, they can still outlaw crypto. It can become a crazy situation.

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100% spot on, Silver is the new gold today! thank you for taking the time to post, see my silver post here. great minds think alike!

https://steemit.com/money/@goldandcoin/stock-up-on-silver-bullion