Hedge against falling home currency
A falling rand means inflation and inflation spells negative effects for investment returns. By buying gold, you can buffer this asset against these effects in a “safe haven” investment. The price of gold isn’t impacted by inflation because a change in currency won’t impact the amount of the gold that you have. A falling currency only becomes a concern if you’re selling gold.
A falling rand means inflation and inflation spells negative effects for investment returns. By buying gold, you can buffer this asset against these effects in a “safe haven” investment. The price of gold isn’t impacted by inflation because a change in currency won’t impact the amount of the gold that you have. A falling currency only becomes a concern if you’re selling gold.
US dollars are a stronger currency than the rand
This means that by purchasing gold, you are able to secure the value of your investment through a steadier and more predictable dollar. Although the price of gold as a commodity could fluctuate as can that of the dollar, these values can increase at a faster rate than that of the rand. As an added bonus, the rise of foreign currency rates and commodity prices will be to your investment’s benefit.
