BizNis Africa
Latest News
Microsoft – How to thrive in the digital era
Forget about digital transformation until you have addresses how...
South African Reserve Bank Repo Rate remains at 6.75%
The Reserve Bank on 23 November 2017 kept the...
Adapt IT acquires LGR Telecommunications
JSE-listed Adapt IT Holdings Limited on 22 November 2017, ...
Africa must implement 1999 Yamoussoukro agreement for open skies
The African Development Bank (AfDB) has called on African...
LCB Bank and Mastercard transforms financial economy in Republic of Congo
LCB Bank, a subsidiary of BMCE Bank Of Africa...
Makro acquires majority stake in start-up company WumDrop
Makro has acquired a majority stake in last mile...
Sasol signs $3.9 billion revolving credit facility
Sasol, the South African chemicals and energy company, has...
Dangote Cement focuses on industrial revolution across Africa
Dangote Cement Plc, one of Africa’s largest cement company,...
Metrofile Holdings launches new digital company
Metrofile Holdings today, 23 November 2017, announced the formation of...
Expats choose South Africa for adventure and quality of life
Globally mobile individuals, also known as expatriates or ‘expats’,...

Chantal Marx, FNB Securities Head of Research

Gold as an asset class is generally considered as a safe haven because its value generally does not fall during times of uncertainty in the market.

“Gold is a precious metal and as such its value is not influenced by the same factors that impact other asset classes. Gold could be held along with other asset classes such as equities, bonds, property and cash as a means of diversifying,” says Chantal Marx, FNB Securities Head of Research. 

Beyond just being a safe investment vehicle, gold also offers protection against a weakening local currency. For example, if you are invested in Krugerrands and the rand depreciates, you are protected against any losses because gold is US Dollar denominated, in essence its value increases when the rand falters.

Krugerrands protect the value of money because they are traded close to the bullion contained in the coin. However, like any other investment, it’s important to invest long-term in order to see favourable returns from your investment. The price of gold appreciates over time; therefore holding it for longer may be beneficial.

Marx says, “If you have a well-diversified portfolio, which includes gold, you will be buffered against adverse market movements because prices of different asset classes rarely move together. If for example, equity prices fall, bond prices may move up, property prices would not be impacted as much, and gold could end up being stable.”

“Through the FNB Share Investing platform, FNB has made it easy to invest in gold via its Online Banking or the FNB Banking App where prospective investors have an option to invest in gold by purchasing Krugerrands or through Exchange Traded Funds. However, it’s also important to seek advice regarding your exposure to gold so that you do not end up with an overly conservative portfolio,” she adds.

This is an opportunity for South Africans to look outside the normal investment vehicle and buy into something that is designed to preserve wealth. In a low growth economy, measured diversification could help you to stay on track towards realising your financial goals.

Leave a Reply

Ver peliculas online
%d bloggers like this: