Cape Town - Buying a Mandela medallion to make a quick buck could cost you dearly, SA Gold Coin Exchange chairperson Alan Demby told Fin24.
Demby was responding to a query by a Fin24 user who felt cheated after taking a R40 000 gamble.
"I bought a 1 ounce Mandela Liliesfontein coin through SA Gold Coin Exchange about two-and-a-half years ago as a bit of a gamble," the user said.
He was under the impression that the coin could be sold back but claims the market leader in gold coins will do so only after about four to six years. He also claimed the value of his coin could not be estimated.
"I asked another gold coin trader the value and was told it is about R11 000.00."
The user said he understands that he took a risk, but believes that his experience could serve as a lesson to potential investors with an interest in gold coins and medallions.
SA Gold Coin Exchange chair Demby responds:
"It is rather unfortunate that the client bought Mandela medallions as a gamble - this is not the type of buyer that we encourage and not the type of clients that we nurture. If the client had disclosed his motives to us, we would have advised him accordingly," Demby told Fin24.
He said generally clients who hold on to coins only for a short period actually lose money. "If you buy one coin looking to make a fast buck, it is a gamble and it will cost you," he cautioned.
The Gold Coin Exchange encourages clients to keep their coins for five to seven years, Demby said.
"We have bought R400m in stock back from clients over the past five years and almost all of our clients have made a profit."
He added that their clients, usually collectors over a period of time, accumulate on average 10 coins each.
- Fin24
Are you a Mandela gold coin collector? Share your story with us and get published.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
Rand - Dollar
19.07
+0.5%
Rand - Pound
23.60
+1.0%
Rand - Euro
20.32
+0.3%
Rand - Aus dollar
12.24
+0.5%
Rand - Yen
0.12
+0.4%
Platinum
943.20
-0.8%
Palladium
1,035.50
+0.6%
Gold
2,388.72
+0.4%
Silver
28.63
+1.4%
Brent Crude
87.11
-0.2%
Top 40
67,314
+0.2%
All Share
73,364
+0.1%
Resource 10
63,285
-0.0%
Industrial 25
98,701
+0.3%
Financial 15
15,499
+0.1%
All JSE data delayed by at least 15 minutes
Government tenders
Find public sector tender opportunities in South Africa here.
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders