Krugerrand sales soar following gold price slump

Savers, investors and coin collectors have been buying Krugerrands in record numbers since the recent gold price slump of mid April 2013.

The Scoin Shop, the UK and the world's only gold coin retail chain, has reported a 468 percent increase in Krugerrand sales, above average weekly sales of the bullion coins, directly linked to the fall in international gold prices.

Alan Demby, an international bullion expert since 1978, founder of the Scoin Shop and chairman of the South African Gold Coin Exchange, commented,"Since the gold price has dropped we have seen an enormous interest in buying gold at what is seen as a competitive rate - many of our existing clients in both the UK and South Africa see it as a tremendous buying opportunity they would otherwise not have.

"Having closely monitored gold's performance over 40 years I can safely say that the media and gold skeptics have got it wrong on this occasion: it is not bad news. Gold is smart money at a time when currencies have never been so volatile.We only have to look at the Eurozone or America's $16 trillion dollar debt to know that gold is the one tangible currency, which can be used against depleted cash reserves which are liable to devalue further.

"While the gold price has temporarily lulled, we need to remember it has maintained a high price in the past decade and it's has never been put to better use than it has now", said Demby.

Cyprus's gold reserves were the only sellable asset the country had to offer. It allowed the country to come out fighting for another day and proves that gold is the ultimate store of value at times of crises.Other EU countries such as Italy have significantly large quantities of gold held making its position strong in the wake of an escalated debt crises.

While governments can use their gold reserves to help alleviate their debt crises, individual collectors have not been selling en masse, rather the opposite according to our sales figures, therefore this is a positive story for the individual saver or investor while the price is lower.

Krugerrands have been the bullion coin of choice beyond Sovereigns or other international bullion coins because of their slightly larger denomination of 1oz, fact they are linked to the US Dollar which has widespread international use, andthat they've proven to be a hugely valuable bullion coin over the past 40 years yielding consistent profitable returns.