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What you need to know about the new direct marketing guidance note
Nadine Mather and Chloë Loubser
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Buy Krugerrands online, store at Rand Refinery
Yesterday, 15 February 2011, FNB became the first bank to offer Krugerrands online through its online share investing platform, in partnership with Rand Refinery. The bank is offering ownership of physical gold with safe custody and a guaranteed buy back offer if the coin is held securely at Rand Refinery. Physical custody is also possible for those clients who prefer to hold their own coins.
Image courtesy of FreeDigitalPhotos.net and Graur Codrin
Currently, Krugerrands are typically purchased at retail coin outlets presenting the purchaser with the security risk of not only transporting the coin, but then also finding a secure method of storing the coin at home.
"The launch serves to enhance our share investing platform through the offer of a new asset class, physical gold. The offer, as with the share investing platform, is designed to make investing in gold easy and hassle free," says Gusta Binikos, CEO of FNB Share Investing.
"Customers will have a choice of trading Krugerrands through online and call centre channels. Some customers prefer to speak to a person when making investments and that's why we have put the call centre facility in place. Investor education on gold and Krugerrands is offered on the website.
"The platform will benefit customers because they are buying through a safe, tried and trusted channel and a reputable supplier via our Internet banking platform. Gold is popular for its role as a safe haven asset. It is a stable, secure asset class and a great hedge investment tool that provides good returns over long-term," he concludes.
Today, a one ounce Krugerrand coin is worth approximately R10 000. In 2001 the same coin would have cost approximately R2000. During 2010 the price of an ounce of gold grew by 29%. The bank will sell the full range of Krugerrands ranging from ?10, ¼, ½, and full 1 ounce coins.
