Buy gold as an inflation hedge: AMG

VICTORIA FALLS - As rising inflation puts gold back on the radar for investors looking to protect themselves from emerging price pressures, the Africa Medallion Group (AMG) is hyping its gold bullion coins known as Krugerrand saying they are a must-have in the portfolio of risk-averse investors concerned about inflation.


The South African-based AMG  - which has spread its tentacles by establishing representative offices in Dubai, Lesotho, Mauritius,
Namibia and Zambia as it seeks to position itself as a truly global
business -  said its world-class gold krugerrand was the best hedge against inflation and currency depreciation.


This comes as inflation is picking up globally, though it's a long way from being a threat, with AMG saying the only asset that does not have its real value reduced by inflation was gold.


Gold has also benefited from nervousness in financial markets amid fears that sovereign debt problems could hurt several economies, sending the yellow metal to new highs. "During times of economic uncertainty, inflation rates and currency devaluation, the only true commodity known by seasoned investors to be
able to stand the test of time is gold," an AMG spokesman said, adding those who want protect themselves against inflation, currency devaluations or simply start enjoying the long term gains that gold investors are privileged to enjoy must invest in the start-up's increasingly high-profile gold products.


Since its inception, the Frank Buyanga-founded AMG has been helping both individuals and corporate entities to set up  their gold
investment portfolios. In addition to his AMG interests, the 39 year-old businessman has several other investments in the financial services sector, mining and property locally, and in South Africa.


When the company was established just over two years ago, it launched quite a number of exciting products, including the $5 African Union commemorative coin and other medallions.
AMG's business is growing in leaps and bounds since entering the
precious metals market with its investment-grade gold bullion bars and coins doing extremely well.


"We offer a solution that caters for parties that wish to set up a
real rock-solid gold portfolio from anywhere in the few thousand range to as much as the multiple million rand range," said the spokesman for AMG whose flamboyant founder is passionate about “social financial inclusion and the upliftment of Africans”, especially the unbanked.


"So whoever you are or where ever you are located, here is why
investing in AMG's gold offering, particularly our gold krugerrand
range is of vital importance. One, gold krugerrands are globally
recognised and also have legal tender status in many countries. This means you do not need to have any special permits or licenses to be able to invest in these. "Two, the gold krugerrand is regarded as one of the world's oldest and most recognised gold bullion coin carrying with it all of the qualities one could want in a gold investment: liquidity, portability and beauty."


First minted in 1967 with the aim to help market South African gold, by 1980 the krugerrand accounted for 90 percent of the global gold coin market. The name itself is a compound of Kruger - the former South African president depicted on the obverse -  and Rand - which is the South African unit of currency.


The AMG spokesman also said it offers "the option either to keep your own gold or you can choose the option to make use of our security and insured storage vault." Besides just offering access to products which help preserve wealth, AMG said it also offers access to services which "maximize safety, security and give you peace of mind," adding it assists in the entire process from acquisition, storage and disposal. "Simply put, we offer the most flexible gold investment packages for both individual and corporate entities," the spokesman said.


The experience of the last 50 years suggests gold performs better as a hedge against inflation shocks - like the spike caused by surging oil prices in the late 1970s and early 1980s - than the widely anticipated grind higher currently seen. And as consumer inflation surges, gold has more than kept pace, hitting a record for an ounce after a fifteen fold rise over the previous decade. Although there are plenty of alternative hedges against inflation, from inflation-linked bonds and inflation-indexed options to real estate, nothing comes close to gold.


AMG last year acquired Pagliari Group (Pagliari) and Cape Mint, with a goal to expand across Africa through organic growth and
strategic acquisitions.The R100 million takeover was just the beginning of AMG's consolidation, and leap. With Pagliari having been acquired in April 2018, the 62-year old jewellery maker’s Cape subsidiary was part of the iconic gold processor or refinery.
And the Atlantic seaboard mint also has major contracts with companies such as global cigarette giant BAT, Germany automaker Volkswagen, the South African Police Services and others.


AMG’s acquisition of the Pagliari Group and The Cape Mint gave its clientele access to minting services including the manufacture of custom gold medallions, Kilo coins, cufflinks, trophies, customized engraving, design work, badges, die tooling and a flurry of other products. Premiums on gold investment products are typically between 5-20 percent, depending on the spot price, supply and demand conditions and volumes.


Investment in gold coins and bars is rising sharply as financial
crises boost the appeal of physical gold as a safe store of value for consumers. According to the World Gold Council, worldwide net retail investment in gold, which includes coin and bar buying, is rising exponentially.

    Comments (1)

    Nxa uhlakaniphile uyafaka ama gold machine kuma shopping malls kumbe lapho okule security abantu bezithengele igolidhe , just like ama atm. Kumele usazise ukuthi igolidhe lakho lisuka ngaphi , akulunganga nxa abantu befela pakathi kwemigodi nge nxa ya lelo golide , Ethical supply chain.

    I inoto elingela gazi - 26 February 2019

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