Gold Is A Literal Life Saver
One common story we hear from customers is that they first heard about gold from their parents or grandparents when they were fleeing turmoil. Just the other day a customer in their late 20s came in to buy gold Krugerrands. Our curiosity piqued, so we asked how they had heard about the South African coin. It turned out that their grandmother had sewn Gold Krugerrands into her dress before leaving her homeland for the shores of Australia.
Escaping refugees don’t have the luxury of making a bank transfer from their old bank account to their new one. In many cases, the bank accounts have already been frozen, or the cash they are holding physically is hyper-inflating away. As systems break down and ordinary people try to get out from under the collapse, gold is the only option that is universally recognised, physical, and easily concealed and carried.
The story that the Krugerand customer told really resonated with the sales consultant, because in a previous life, before working at Ainslie, he ran a small business. As with all new businesses, the expenses outweigh the revenue in the initial stages. With significant up-front costs and no guarantee of success, the twelve hour days and the stress of making payroll and rent took a massive toll physically and psychologically. The young entrepreneur’s saving grace was holding enough gold to restart if necessary. Some nights, during those lean early days, the security of holding gold was the only thing that helped him get to sleep at night. When all is lost, gold represents a lifeline that can’t be controlled by creditors, shareholders, banks or the government.
Business owners, those fleeing violence, citizens that aren’t willing to obey immoral or illegal government mandates, can rest a little easier knowing that they have one asset which is outside of the system and untracked.
The Krugerand customer reflected that his grandparents, rather than turning up in Australia impoverished, they were able to sell 1oz Gold Krugerrand at regular intervals as they found accommodation and set themselves up in a strange new land. To get through, they sold all but a couple. Now their grandson is trying to replace the stock. For people fleeing turmoil and starting life anew, gold is a life raft.
As a hard asset it is without peer in terms of fungibility, universal acceptance, stability amid currency turmoil or raging inflation, zero counterparty risk (or paper promissory risk), and ease of storage and transferability. No surprise then that these very same attributes are just as valuable to those seeking safety on financial markets as those seeking safety for a new life in a new land.
Money is universal and real money is rare.
Gold and Silver Kruggerands are still produced to this day by the South African Mint, and are available from both our Brisbane and Melbourne Offices.