FNB to sell Krugerrands online
First National Bank (FNB) will be the first bank to sell Krugerrands online, partnering with Rand Refinery so they can be sold on its online share-investing platform.
Krugerrands are typically purchased at retail coin outlets. This presents a security risk for the purchaser, who must transport the coin and also find a safe place to store it at home. FNB is now offering ownership of physical gold with safe custody and a guaranteed buy-back offer if the coin’s held securely at Rand Refinery. You can have custody of the coin if you wish—the choice is yours.
The idea is to enhance FNB’s share-investing platform through the offer of an exciting asset class, namely gold. FNB hopes to make investing in gold easy and hassle-free, says Gusta Binikos, CEO of FNB Share Investing. Gold is considered a “safe haven” asset because it’s a secure, stable asset class and a good hedge investment tool that can provide good long-term returns.
You will have the choice of trading Krugerrands through online and call-centre channels—the latter have been set up as some customers prefer to speak to a person when investing. FNB offers investor education on gold and Krugerrands on its website.
Today, a one-ounce Krugerrand coin is worth about R10 000. In 2001, the same coin would have cost you about R2 000. During 2010, the price of an ounce of gold grew by 29%. So the wealth-creating properties of Krugerrands can’t be underestimated. Made from 22-carat gold, they’re sought after for their intrinsic value and there are over 46 -million ounces of coins in circulation. They’re the most popular traded coin in the world today.
FNB will sell the full range of Krugerrands, ranging from 1/10, ¼, ½, and full one ounce coins.
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