South Africans bank on gold coins

Aware that gold is the ultimate store of value, concerned South Africans are piling into Krugerrands and Nelson Mandela gold medallions, the South African Gold Coin Exchange said on Friday.

Aware that gold is the ultimate store of value, concerned South Africans are piling into Krugerrands and Nelson Mandela gold medallions, the South African Gold Coin Exchange said on Friday.

"On the back of global financial turmoil, the ever-popular Krugerrand has soared through the R10000 mark, handsomely rewarding investors who several months back anticipated the global financial turmoil that has driven the rand price of the yellow metal into orbit," said Alan Demby, executive chairman of the Gold Coin Exchange.

The surge could be directly ascribed to a combination of an advancing dollar gold price and a weakening rand.

"Based on current demand levels, the Gold Coin Exchange's sales have been running at levels in excess of R100million a month. "We have increased our 2009 sales target to an admittedly conservative R1billion," said Demby. - Sapa

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