Gold is one of the most alluring investment options. You can invest directly by purchasing physical gold or indirectly through financial instruments. Here’s a breakdown of what you need to know:
How is Gold Valued?
Gold’s price is measured in US dollars per troy ounce (31.1g). Its purity is expressed in carats, ranging from 9 (37.5% gold) to 24 (pure gold). The weight and purity of gold determine its worth.
Forms of Gold Ownership
- Gold Bullion: Includes coins, bars, and ingots made of high-purity gold. South Africa’s famous Krugerrand is a widely recognised gold bullion coin, traded globally and minted by the South African Mint.
While gold coins are a stable investment, it’s crucial to buy from accredited dealers and factor in the spread (buying vs. selling price), storage, and capital gains tax. - Gold Jewellery: Though desirable, gold jewellery isn’t recommended as a reliable investment. Its price often reflects craftsmanship and design more than the gold’s market value, and selling it may yield lower returns than expected.
Fun Facts About Gold
Gold is incredibly non-reactive and has been mined for over 40,000 years. South Africa’s Witwatersrand Basin holds the world’s richest gold deposits. However, the nation’s production has dramatically decreased from 1,000 tonnes in 1970 to just 110 tonnes in 2022.
Gold remains a versatile asset, used in jewellery, industry, and investments, making it a valuable addition to any portfolio. But like all investments, understanding the market is key to maximizing its benefits.
