The pure gold coin with a denomination of R500 has been limited to only 125 coins and sells through the SA Mint for R33 995. This is a premium on the current gold price of R21 800 per ounce and any return on investment would require a buyer who is prepared to purchase the coin for its rarity value.
The R50 sterling silver coin can be purchased for R995, although the price of sterling silver is R250/oz – with 10 000 coins having been minted, it would have a lower collector’s value. This would not necessarily provide a return on the investment.
Not all commemorative coins are produced by the SA Mint. A coin issued by the mint would have a face value or denomination, while some issuers create medallions that have no face value. For example, the SA Gold Coin Exchange, in collaboration with the Nelson Mandela Foundation, created gold coins depicting Robben Island, and marketed them through Scoin Shops. These coins are only worth the gold value, the same as a Krugerrand, however, they were sold for several thousand rands above the metal value, leading to many disgruntled customers.
When it comes to purchasing commemorative coins, be cautious of coin shops that guarantee that they will buy the coin back from you. These promises are usually only made verbally and when you attempt to sell your coin, you may well discover that they will only be prepared to purchase the coin if they have a buyer.
Before you start investing in coins, do your homework. Coin collecting is a specialised industry and, while it is an investment class that can provide significant returns, this is only on very rare and collectable coins that are hundreds of years old.
To learn more about coin collecting as an investment, contact The SA Association of Numismatic Dealers at saand.co.za or the SA Coin Association on its Facebook page.