Proof that KRs are gifts that do indeed keep on giving

Gifts that keep on giving are, self-evidently, gifts that are more highly sought after than those that do not.

Problem is, they seldom come with a gift wrapping that evidences the nature of the item in question; if they did, their appeal would be thereby diminished.

“That’s why identification of gifts that are eternal givers demands foresight, hindsight, insight and a rare perspicacity,” says Alan Demby, executive chairman of the South African Gold Coin Exchange (SAGCE).

This is Demby’s response to an approach designed to elicit feedback on how best to show your affection for loved ones ahead of the festive season.

“I offered the same answer last year, the year before and the year before that. If you wish to extend a gift that gives, gives and gives yet again, think no further than a Krugerrand, the ultimate hedge in a world of uncertainty.”

He says that when he recommended buying Krugerrands ahead of the 2008 festive season, it was a gift that cost the giver R6 000 apiece. His repeat recommendation a year later required an outlay of somewhere in the region of R8 000. In 2010 the price was R9 600; and a whopping R14 000 that has been reached this year.

“The evidence is incontrovertible. In the short space of three years, the value of that gift has more than doubled. Sure, as a gift it cost the recipient nothing at all. But had it been a bottle of after-shave, it would long ago have been consumed and forgotten; had it been a shirt or tie, it would now be languishing in a bottom drawer.

“Contrast a gift of that standard-type nature with a Krugerrand, the value of which can be referenced every day. Significantly, reference to that value provides the owner with a feeling of immense gratification; one that encompasses considerable appreciation for he or she who gifted the Krugerrand.”

Demby acknowledges the absence of certainty when seeking to unveil the future; that there can be no guarantee that the price of Krugerrand will more than double again in the next three years. “This is where foresight, hindsight, insight and a rare perspicacity are relevant.”

He suggests that with gold having proved itself as a consummate store of value over the past 3 000 years, it is unlikely that history of so vast an expanse will be contradicted in the (relatively) near future.

He points out that gold’s ongoing strength indicates a large measure of permanence. “The platform is being established for the yellow metal to advance to $2 000 in the months ahead. Hence, I am confident that the Krugerrand remains true to its reputation as the ultimate eternal-giver gift.”

Demby highlights the attendant benefits to the recipient of a Krugerrand:

• It requires little care or attention;

• It can be sold at any time anywhere in the world at the then-ruling gold price;

• It is portable;

• It has a certain aesthetic value; and

• It commands the respect of international investors and coin dealers. 

Demby points out that for those who regard a R14 000 gift price tag as more than their pockets will bear, half- and quarter-Krugerrands are identical, pro rata options.

“An alternative, which does not sacrifice the gold element, is one of a range of Nelson Mandela medallions – a dimension that injects an element of emotion into the gift; one that softens what some might regard as something of purely commercial value.”