I cant give a comprehensive guide to purchasing bullion in South Africa as I haven’t done the leg work myself, but I can point you in the right direction, and using the information gained from the buyer’s guide, you will be able to judge what is a good deal and what isn’t.
What to Buy?
With South Africa having one of the most well known gold bullion coins in the world, the Krugerrand, you cant go wrong with buying it. The 22 karat (91.67%) bullion coin was first minted in 1967 and named after the president of Transvaal, Paul Kruger. It is available in 1/10, 1/4, 1/2 and 1 troy ounce sizes and each coin contains its stated amount of 24k gold (1 oz Kruggerand weighs 1.0909 oz – 33.9303 grams). The Krugerrand is minted by The South African Mint, which also mints the Krugerand’s in annual limited set and single boxes with certificates of authenticity that are more targeted to coin collectors (normally identified as being ‘proof’ coins). The mint also mints other collector coin series in gold (Natura, Protea, R2) and silver (R2 Crown, Sterling Silver), but as stated in the buyer’s guide, collector coins have quite high premiums (50% or more) due to their rarity, so stick with just getting bullion coins. South Africa has minted its own version of the 22k Gold Sovereign coin, which is known as the South African Sovereign and it comes in 2 Rand (8 gram) and 1 Rand (4 gram) coins, which will have a lower premium per gram than the 1/4 Krugerrand (8.48 gram). As Krugerrand and South African Sovereign coins are legal tender coins, they are likely exempt from VAT (Value Added Tax). Various sizes of gold bars will be available in South Africa which will not be exempt from a 14% VAT and the Precious Metals Act 2005 made it possible for the public to own bars since 1911.
South Africa unfortunately doesn’t mint any silver bullion coins presently, though during my short stay in The Cape, one person did mention that South Africa had a silver coin called the silver Mandela, but I later came to know that it is minted by the Mint of Norway and is a medallion/round mainly for collectors. South Africa used to have 90%-silver 5 Shillings and 50%-silver 2 Shilling coins previously in circulation, which can be classified as junk silver and would be a good means of having silver coins if the premium is low. The most common silver bars in South Africa come in 10 gram, 100 gram, and 1 kilogram sizes. Silver is sold with a 14% VAT.
South Africa Gold and Silver Prices
I would assume that the daily gold (Au / XAU) and silver (Ag / XAG) prices would be published in the forex sub-section of the business section of the daily newspapers in South Africa. You can find below the spot gold price in US Dollars and South African Rands (ZAR) per troy ounce, and GoldPrice.org includes gold price charts per gram and kilogram and silver price charts per ounce and kilo.
Cape Gold Coin Exchange [021 461-8030] (SA Mint Dealer) [Map] [email]
Includes the buy and sell prices for Krugerrand and SA Sovereigns and their divisions, in addition to a list of the world coins that they sell (canadia, america, australia, china, austria, mexico, etc). The company also sells 50% junk silver coins in 10 kilogram bags.
Metal Concentrators (MetCom) [021 510-0770]
Sells gold bars (10, 50, 100g), silver bars (100g, 1kg), platinum bars (1 oz), as well as gold coins (krugerrand) and medallions (1, 2, 5g), Orders need to be paid within 24 hours and are delivered within 10 working days by RAM couriers. The company also operates a factory (Metcon Refinery) that refines precious metals and produces jewellery trade casting.
City Coins [021 425-2639] (SA Mint Dealer)
Waterfront Mint [021 419-9297] Clock Tower Centre, V&A Waterfront (SA Mint Dealer)
Global Gold [011 466 1669] [email] (SA Mint Dealer)
Sells gold bars (10, 50, 100g), silver bars (100g, 1 kilo), platinum bars (1 oz), gold medallions/rounds (1 oz, 1 kilo), and gold medallions/rounds (1/10, 1/4, 1/2, and 1 oz).
Cyber Metals [011 655 7138 / 031 336 2668] [email] (SA Mint Dealer)
Online store of Centaurus for the purchase of gold bars (10g, 100g), silver bars (10g, 100g, 1 kilo), platinum bars (1 oz) and krugerrands (only buy the ones that have ‘bullion’ in its title) and palladium medallions (1 and 5 oz).
Keogh Coins [031 304 4561] [email] (SA Mint Dealer)
Collectors Exchange [031 306 0359] 88 Field Street [email] (SA Mint Dealer)
Scoin Shop [021 683-3490] – They are the retail division of the South African Gold Coin Exchange and during my visit to the Cape, one person recommended them. They have branches throughout South Africa in malls (Brooklyn Mall [012 346-0676], Gateway Mall [031 566-0023], Somerset Mall [021 852-3358], Clearwater Mall [011 475-9885], Walmer Park Shopping Centre [041 367-4257]) and airport terminals (OR Tambo, Cape Town). Unfortunately, I was only able to visit their Cape Town Airport kiosk, which only sold certified ‘proof’ coins that were 14,500 rand (US$ 2,178) for a 1 oz Krugerrand ( 53% over spot ) and 1,000 rand (US$ 150) for a 1 oz silver Mandela ( 295% over spot ), when gold and silver were US$ 1,420 and US$ 38.
Valley Gems [012 751-7107] – Located in Pretoria (Gauteng Province), Valley Gems offers gold, silver, and platinum bars.