Gold has worked down from Alexander’s time … When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory. – Bernard M. Baruch
What are your thoughts investing in silver bullion coins vs silver bars?
The Austrian Philharmonic 1 ounce silver bullion coin has “legal tender status” Silver coins are both easier to sell and authenticate, as the weight, measures, and silver content of each coin is well regulated by the Austrian mint.
Weight (grams): 31.10
Pure silver content (grams): 31.10348
Fineness: 999.0
Dimensions: 37mm Diameter x 3.2mm Thick
Our silver coin pricing is comparable with local silver bullion bar pricing so in our opinion it makes sense to use an investment vehicle that is more liquid and tradable. Legal tender silver bullion coins are internationally recognisable and sell for a higher premium than silver bars in the secondary market.
Is there an active secondary market for silver bullion coins in South Africa?
Currently there is not a large secondary market for silver bullion coins in South Africa but we believe that the size of the secondary market will increase as more people are made aware of the benefits of investing in silver. There is currently an active secondary market on Internet sites like Bid or Buy and Gumtree.
Is there any way for a layman to authenticate bullion coins?
Due to the physical properties of gold and silver, one ounce bullion coins must be of a certain dimensions and weight to be genuine.
Eg Austrian Philharmonic 1 ounce silver bullion coin
Weight (grams): 31.10
Pure silver content (grams): 31.10348
Fineness: 999.0
Dimensions: 37mm Diameter x 3.2mm Thick
Please also see our blog post on the Fisch Scale and also the Bullion test app for android and IOS
What are the differences between bullion and numismatic coins?
Silver bullion coins do not have any numismatic value. A bullion coin is a coin that is valued by its weight in a specific precious metal. Bullion coins are purchased by investors wishing to invest in the underlying physical precious metal. They are typically sold for the spot price of the underlying metal with a small markup to cover production costs and marketing.
What are your thoughts investing in silver bullion coins vs silver bars?
The Austrian Philharmonic 1 ounce silver bullion coin has “legal tender status” Silver coins are both easier to sell and authenticate, as the weight, measures, and silver content of each coin is well regulated by the Austrian mint.
Weight (grams): 31.10
Pure silver content (grams): 31.10348
Fineness: 999.0
Dimensions: 37mm Diameter x 3.2mm Thick
Our silver coin pricing is comparable with local silver bullion bar pricing so in our opinion it makes sense to use an investment vehicle that is more liquid and tradable. Legal tender silver bullion coins are internationally recognisable and sell for a higher premium than silver bars in the secondary market.
What is the difference between “paper” and physical gold?
Paper gold is traded on futures markets. Many gold exchange traded funds hold gold in futures contracts. When holding gold in a futures contract you can take delivery of the gold on the expiry of the contract, but the contract is subject to default risk. One of the reasons for holding gold is to protect assets from default risk.
Where can I learn more?
The following web sites have valuable content.
Shadow Government Statistics
Euro Pacific Capital
24hgold
McAlvany.
Are all coins issued with a certificate?
No. All gold and silver bullion legal tender coins weight and purity is guaranteed by their respective governments mints. The size, weight, fineness and image on the coin is in effect a certificate of authenticity from the government mint. Some numismatic coins like the 2017 Silver Krugerrand are shipped with a certificate of authenticity.
Do you offer better pricing on orders larger than 500 ounces?
Yes. We are in a position to provide better pricing if we can hedge our position with the mint. (This eliminates our spot silver and also our R/$ risk) We hold local stock so can ship as soon as funds clear.
Why are your silver bullion coin prices so much higher than the Silver spot prices I see quoted on financial TV.
The following factors influence silver bullion coin pricing in South Africa.
- Mark-up on the spot silver price from the Austrian Mint. (To cover manufacture and marketing)
- Shipment to SA
- In transit insurance
- 15% VAT
- Clearing costs
- Banking costs
- Rand / $ exchange rate
- Silver spot price
- African Bullion markup
African Bullion aims to provide the narrowest spread possible for the South African bullion buying public.
How will my order be shipped and are shipments insured
We use Couriers to ship all our gold and silver bullion products. The shipments are insured by specialist high value cargo insurers. One of the stipulations from our insurers is that couriers do not know the contents of the shipments. This is advantageous for our and our clients safety. We have not lost one coin using this method since 2009.
What are your thoughts on the investing in silver vs investing in gold debate?
We believe that as central bankers of the world continue to print money and devalue their currencies both silver and gold investments will outperform inflation.
Some investors believe that silver will outperform gold in the current precious metals bull market. The current Gold / Silver ratio is 71 : 1 (One ounce of gold will cost you 71 ounces of silver) Many investors believe this ratio will fall to at least 20 : 1 resulting in more upside potential for an investment in silver. If this scenario plays out the premium paid now to invest in silver will be negligible. It is interesting to note that geologists estimate that the ratio of silver to gold ratio in the earth’s crust is about 16:1. In recent years we have seen the ratio as high as 80:1 and as low as 30:1
What is the best way to store bullion coins?
Two factors need to be considered, security and liquidity. If security is the primary concern there are registered storage facilities that specialize in the storage of high value assets. All South African banks have safety deposit box facilities. For some investors one of the main attractions of bullion coins is its liquidity. If this is a concern, home storage in a safe at home is an option.
Is VAT levied on the purchase of bullion coins?
The locally produced Krugerrand has legal tender status and is not subject to South African VAT. International legal tender silver bullion coins and silver Krugerrand’s are subject to South African VAT. SA VAT has been factored into all prices quoted on our website. All orders are shipped with a VAT invoice.
Rand Refinery
African Bullion is a Rand Refinery contracted re-seller of the South African gold and silver Krugerrand.
South African Mint
African Bullion is an authorised dealer with the South African Mint. More text
Austrian Mint
African Bullion is an authorised dealer with the South African Mint.
