MyMoney Online

Is Gold the next best thing?

Gold has always been a storage of wealth. The lustre of gold has attracted investors for centuries. Over the best part of the last decade, however, it seems to have lost its shine. Peaking at levels around $1900 a few years ago to $1100 of late the big question is, “Will it be the next best investment when investors take flight from the stock markets and look for what has traditionally been their storage of wealth?

If you think that gold still has it’s traditional place as a “safe haven” from risk then you have some options. From a South African point of view gold has the benefit of being priced in US Dollars. This provides a hedge on a weakening rand. So if the rand keeps on weakening the rand price of gold will improve.

Kruger Rands

These have traditionally been the popular option as they give investors a tangible feeling of wealth. You can touch them and you can move them. They will cost you about 5% on the “buy and sell” and you should also remember that you should account for capital gains tax on the sale.

ETF New Gold

ABSA have a gold fund which invests directly in the bullion. You get the same return as a Kruger Rand but at a lower cost. You do not have to hold the gold as it is done for you. So no worries as to where to store it your gold or concerns about it getting stolen or lost.

ETF in a Tax Free Savings Account

What about opening a tax free savings account investing in New Gold? Here you get the full benefits of the gold price (if it moves in the right direction against the rand), at a low cost and you don’t have to pay any tax on disposal.

Do your homework before considering this as an investment. It is purely reliant on the Rand/Dollar exchange rate and the US Dollar price. It is risky as we don’t know with certainty which way either will move. So, perhaps a portion of your investment will do to diversify.

Listen to Paul Roelofse's advice about investing in gold as heard on Weekend Breakfast below:


Read More
3 shares that’ll boost your wealth, if you buy now (by Cannon Asset Managers)

3 shares that’ll boost your wealth, if you buy now (by Cannon Asset Managers)

The Money Show’s Bruce Whitfield interviews Cannon Asset Managers Portfolio Manager Samantha Steyn.

6 tips on how to avoid overspending this festive season

6 tips on how to avoid overspending this festive season

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

3 shares you’ll do well to buy this week (by Cartesian Capital)

3 shares you’ll do well to buy this week (by Cartesian Capital)

It’s Stock Pick Monday on The Money Show. Bruce Whitfield interviews Cartesian Capital CEO Anthea Gardner.

3 shares that’ll grow you wealth, right now (First Avenue Investment Management)

3 shares that’ll grow you wealth, right now (First Avenue Investment Management)

The Money Show’s Bruce Whitfield interviews investment analyst Nadim Mohamed.

3 shares that should do very well, if you buy them now (by FNB Securities)

3 shares that should do very well, if you buy them now (by FNB Securities)

The Money Show’s Bruce Whitfield interviews FNB Securities Head of Research Chantal Marx.

Savings accounts with the best interest rates in South Africa

Savings accounts with the best interest rates in South Africa

Bruce Whitfield interviews Daniel Rubenstein, Co-Founder at MyTreasury – a tool that finds the best interest rate for you.

Popular articles
So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

Shop 'til you drop: The top 'Black Friday' deals this week

Shop 'til you drop: The top 'Black Friday' deals this week

Start your Christmas shopping off with a bang at these major retailers offering some impressive discounted sales for Black Friday.

Pamela Nomvete on her downfalls as actress, and 'climbing back'

Pamela Nomvete on her downfalls as actress, and 'climbing back'

This week Xolani Gwala's speaks to former Generations actor Pamela Nomvete for #WhatInTheWorldHappenedTo feature.

How Naspers paid peanuts for Tencent (China’s most valuable company)

How Naspers paid peanuts for Tencent (China’s most valuable company)

In 2001 Naspers invested $32 million in (then tiny) Tencent. Learn more about the wildly profitable Chinese behemoth...

Police hunt man who doled out drug-laced sweets to school kids

Police hunt man who doled out drug-laced sweets to school kids

60 children from three schools in south of Johannesburg were rushed to hospital after eating sweets handed out by a stranger.

'The university degree is dead'

'The university degree is dead'

Flux Trends founder Dion Chang gives five reasons why he believes getting a degree is past its sell by date.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?