April 26, 2018 – Physical gold in the form of the well-known Krugerrand bullion coin, manufactured jointly by Rand Refinery and the South African Mint, is tradable in Germany for the first time on the Stuttgart stock exchange and is of particular interest to institutional investors. These can invest in the “Krugerrand (1oz) Gold Bond” and therefore take part in its performance. Additional advantages are the purchase of physical gold in combination with the stock exchange tradability with favourable spread as well as the simple and secure storage option in Germany.
Krugerrand gold bullion coins. Photo © South African Mint.
The bearer bond guarantees the right to demand delivery of the Krugerrand gold coin, which is recognized as legal tender in South Africa. The pieces are kept safe by BayernLB in Nuremberg and larger quantities can be bought or sold flexibly by investors according to gold rate development.
Richard Collocott, Executive Head of Marketing at Rand Refinery: “The Krugerrand bond offers large investors a fixed issue price, with regard to the reference price of a Krugerrand gold coin, without additional management or annual fees over the entire 10-year term. Besides that, investors are entitled to delivery of the Krugerrand gold coins at any time.”
The Krugerrand bond is also used to stabilise and improve the portfolio and is often considered to be a “crisis currency”. The bond also opens up attractive income opportunities in the event of high demand for investment gold and consistent conveyance capacity.
Michael Eubel, Head of Precious Metal Trading Department at BayernLB: “The Krugerrand bond is, for example, an interesting product for institutions which are not allowed to purchase precious metals or raw materials for legal reasons, such as insurances or UCITS funds. At BayernLB we check and guarantee the authenticity and purity of the individual Krugerrand gold coins. In addition, we are responsible for the purchase, the storage in high security vaults and for the delivery processes.”
The issuer is Gesellschaft zur Verbriefung von Lieferansprüchen auf Edelmetalle mbH (G.V.L.E.). The bond can be bought via security order systems (identification number A2F6KP) and is provided with 100-percent cover at all times. The stocks are insured to a maximum volume of 250,000 one-ounce Krugerrand coins.
The base value of each Krugerrand bond corresponds to a Krugerrand gold coin with a purity of at least 916.66/1000, a weight of one ounce and a 10-year term. Delivery of gold ounces to a German address is possible at any time on favourable terms.
More information is available at a dedicated website (in German only).
To check the current indices go to the Stuttgart stock exchange website.
And don’t miss our article on the story of the Krugerrand bullion coin.