Remember when the US banned imports of Krugerrands mid-80s - would Trump even consider similar SA sanctions?

As US President Donald Trump targets South Africa with a ban on American aid and other implied threats, The Money Show thinks back to the last years of apartheid when the country imposed sanctions on us.

Part of that was a ban on the import of Krugerrands, which came into effect in October 1985.

How important are these gold coins today as an investment tool?

Stephen Grootes gets some insight from Rael Demby, CEO of The South African Gold Coin Exchange and The Scoin Shop.

Aside from the soaring gold price, it's the comfort of actually being able to hold an asset in your hands in uncertain times, that is driving up demand for Krugerrands, Demby says.

"I could imagine in this world, being online and digital and calling up a broker for some shares, actually taking home a few gold coins gives a lot of people a lot of comfort."

"At the moment the gold price is going a bit wild, the rand to the dollar is weakening; so the rand hedge that is a South African gold Krugerrand (launched in 1967) is worth over R57 000 today."

Rael Demby, CEO - South African Gold Coin Exchange

In the unlikely event of a US ban what would be different today is that there are other bullion options around the world, compared to '85 onwards when the Krugerrand became a scarce limited mintage, notes Demby.

"You can buy gold ETFs, you can buy exposure to gold, but there's something quite wonderful about owning the physical asset and storing it safely... in times of need with instant liquidity, gold has stood the test of time."

Rael Demby, CEO - South African Gold Coin Exchange

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