FNB said it has seen a strong demand from clients buying Krugerrands on its trading platforms as consumers embrace alternative asset classes to diversify their investment portfolios.
Over the last year, FNB said it assisted with facilitating the delivery of over 2 200 Krugerrands on its trading platforms.
Sebastian Pillay, Head of Share Investing at FNB Wealth and Investments said, “FNB currently holds over R1 billion worth of coins in its portfolio on behalf of its clients. This milestone underscores the trust that clients have placed in FNB as their preferred financial and investment partner. This further demonstrates that FNB customers are diversifying their investment portfolios to hedge against unfavourable market conditions.”
“Krugerrands are linked to the international value of gold, which means that the investment is protected from local currency volatility and devaluation, therefore this makes it a global asset class that you can rely on in a good market environment as well as in times of uncertainty. Moreover, the recent surge in the gold price has led to a significant increase in demand for Krugerrands,” Pillay further added.
In periods of global market uncertainty coupled with slow economic growth, gold has consistently maintained its reputation as a safe haven.
Some investors buy gold as a sentimental investment, while for those who are extra cautious about financial market movements, buy Krugerrands as a sense of comfort for their investment portfolios.
Krugerrands have left an indelible mark on the world of precious metals since its inception decades ago and has been a first-choice safe haven for many investors when considering getting exposure to gold or often used as a hedge against inflation and currency fluctuations.
“Krugerrands are highly liquid in the South African market making them a preferred choice among seasoned investors and collectors alike and are considered a legal tender in South Africa, but their real value lies in their gold content. Whether acquired for portfolio diversification, wealth preservation, or numismatic appreciation, Krugerrands continue to perform in the realm of precious metals and serves as a cornerstone investment in precious metals,” Pillay further said.
BUSINESS REPORT