South African currency may be something that you don’t think about often, but South Africa is a place to consider when it comes to gold. Why? South Africa is rich in gold, and it’s one of the most popular places to mine for gold in the world. I want to share with you a little bit of background on South Africa, the currency, and where to find the gold.
History on South African Currency
One of the most popular coins to come out of South Africa is the kruggerand. This is a gold coin that is still circulating today and is often purchased by serious gold buyers. Those who are familiar with South African currency know that the name of the currency is “rand”. The R is the sign, but the unit is ZAR.
It was in the early 1960’s that this unit was only worth just $1.40, but in 1982 when apartheid became an issue, it changed the value, bringing it down. This currency had actually broken just above parity at this time, but it was traded just below its standard value until two years later.
It was in 1985 that it was mandated that the trading was stopped, or rather that the foreign exchange trading was halted. It was sticky, and no doubt a problem for those who were handling these foreign coins. South African currency somewhat recovered in the mid 1980’s, but this currency began trading above the level that it was trading at before which was good news for the country.
Coins in South African Currency
If you are curious about coins in South African currency, then you might want to learn a bit about them to understand why they are significant in some fashion.
It was in 1961 that the coins were introduced in various denominations of ½, 1, 2 1/2, 5, 10, and even 20 cents. It was only four years later that some changes were made to the coins, so that ½’s would be replaced by the 2’s, because working with whole numbers was easier.
To try and protect the South African currency, an R5 was made that was to prevent counterfeit coins from being made. The reality is that the bi-metal design was a good way to do this; however, it was still possible to counterfeit gold coins. Even counterfeits are popular in the US for certain gold type coins.
South African Currency and Gold
The question now is whether or not it’s beneficial to invest in South African currency or to buy gold? Some would say, just buy gold South African coins, but this isn’t at all a strategy and I can tell you why.
Coins have what is known as numismatic value, and gold only has its value as a currency. Yes folks, gold is in fact a currency. Although many don’t know that, it’s true, and that is why the price of gold is off the charts. The US dollar is going down, and because it will continue it does pay to buy gold.
If you would like to learn more about buying gold and why it’s a better insurance than South African currency, then CLICK HERE.
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