DOCSLIB.ORG

A Comprehensive Guide to the Gold Price

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
A Comprehensive Guide to the Gold Price A Comprehensive Guide to the Gold Price The Krugerrand A Comprehensive Guide to the Krugerrand Table of Contents __________________________________ Introduction ..................................................................................................................... 2 Dimensions and Physical Specifications .................................................................. 3 Description .................................................................................................................... 3 Refining and Minting .................................................................................................. 5 Manufacturing .............................................................................................................. 5 History ............................................................................................................................... 6 Worldwide Markets and Dealers ................................................................................ 8 Krugerrand Prices ....................................................................................................... 9 Why Invest in Krugerrands .......................................................................................... 9 Contact GoldCore ................................................................................................. 10 © 2013 GoldCore 1 A Comprehensive Guide to the Krugerrand Introduction ________________________________________ he Krugerrand is a South African gold coin containing exactly 1 troy ounce of T fine gold, and is the world’s most widely held gold coin, with over 47 million 1oz coins sold globally since production began in 1970. The coin is named after Paul Kruger, a former President of the South African Republic in the late 1800s, and the South Over 47 million 1oz African currency, the Rand, whose name in turn is derived Krugerrands sold globally from Witwatersrand, the famous South African gold reef. since production began in 1970. Krugerrands are sometimes known by their shortened name, Krugers, especially in South Africa. © 2013 GoldCore 2 A Comprehensive Guide to the Krugerrand Dimensions and Physical Specifications __________ he Krugerrand is a 22 karat gold coin, with a fineness of 0.9167 or 11/12 T gold. It is made of 11 parts gold to 1 part copper, creating an alloy known as crown coin. The copper adds durability and strength to the coin and contributes the reddish tint to the colour of the metal. Since the Krugerrand contains exactly 1 troy ounce of fine gold, or 31.103 grams, the gross weight of the coin is 1.0909 ozs or 33.93 grams. The coin has a maximum diameter of 32.77mm and a thickness of 2.84mm. There are 180 serrations on the coin’s rim. Description The front (obverse) of the Krugerrand bears the profile of Paul Kruger. This profile was designed by Otto Schultz of the Imperial Mint in Berlin and first appeared on the South African Republic’s coins in 1892. It was again chosen in the 1960s when the design of the Krugerrand was being devised. Inscribed around Kruger’s profile are the words “SUID-AFRIKA “, in Afrikaans and “SOUTH AFRICA” in English. © 2013 GoldCore 3 A Comprehensive Guide to the Krugerrand On the reverse of the Krugerrand is an image of South Africa’s national animal, the Springbok. The design, created by Coert Steynberg, a famous South African sculptor, captures the typical pronking or strutting movement of the Springbok. This design was also used previously on various older South African coins. In a semi-circle above the Springbok is inscribed the word “KRUGERRAND” and in the lower semi-circle the coin’s weight “1 OZ”. Then, to the left the word “FYNGOUD" in Afrikaans, and to the right “FINE GOLD’ in English. The coin’s mintage year is specified horizontally in two parts each side of the Springbok, for example, 2012 being 20 and 12. Although the Krugerrand has legal tender status in South Africa and has a face value of 10 Rand, there is no monetary As legal tender value specified on the coin. Krugerrands were never Krugerrands can be intended to be used as legal tender since, in a free floating imported free of import gold price environment, the gold content would always be duties. of higher value than any legal tender value ascribed to them. This is known as non- circulating legal tender. The legal tender status allows Krugerrands to be imported into various countries free of import duties, and for this reason the South African government has never looked to remove the legal tender status. © 2013 GoldCore 4 A Comprehensive Guide to the Krugerrand Refining and Minting Krugerrands are produced in a joint undertaking between Rand Refinery Ltd and the South African Mint Company (Pty) Ltd, and ultimately regulated by South Africa’s central bank, the South African Reserve Bank (SARB) under the direction of the South African Treasury. Rand Refinery is a private company owned by four leading South African gold mining companies, namely, Goldfields, AngloGold Ashanti, Harmony and DRDGOLD. The refinery, located in Germiston, east of Johannesburg, is the largest single gold refining and smelting site in the world and has refined more than 25% of the world’s gold mining output. The SARB authorises Rand Refinery to refine and sell Krugerrands through a network of primary distributors both in South Africa and internationally. The South African Mint Company, located in Centurion, between Pretoria and Johannesburg, is a wholly owned subsidiary of the SARB. Manufacturing The manufacturing process of a Krugerrand is twofold. Rand Refinery first manufactures the coin blanks. These are then supplied to the Mint. The Mint strikes the coin blanks to create Krugerrands. Although the vast majority of Krugerrands created by the Mint are bullion coins, limited edition proof Krugerrands are also made. Bullion coins are stamped once by the coin stamping process. Only Rand Refinery is authorised to sell these bullion Krugerrands, and then, only to primary distributors in South Africa and abroad. © 2013 GoldCore 5 A Comprehensive Guide to the Krugerrand Proof coins are stamped twice using a sand-blasted die to create a frosted image and then polished to a high quality finish. Proof Krugerrands are sold directly by the Mint in sealed capsules with a certificate of authenticity. History ______________________________________________ he South African Chamber of Mines devised the Krugerrand T in the mid-1960s as a new way of marketing South African gold internationally. The logic of the coin was that the simple design, low cost of manufacture and exact 1 troy ounce size would allow a low premium over the gold spot price, and give investors an affordable way to track the gold price through coin ownership. The first Krugerrands were minted in 1967 but initially From 1975 until the only in small batches of proof coins. In 1970 Krugerrands 1985 import ban, began to be mass produced and international demand approximately 22 grew quickly. Britain lifted gold buying restrictions for million Krugerrands had individuals in 1971 followed by the US at the end of 1974. been imported into the Demand increased as the international gold price rose, but US. was also helped by successful Krugerrand marketing in the US and West Germany. Annual sales of new production peaked in 1978 at over 6 million 1oz coins, but remained in an annual 2-3 million coin range until 1985. In September 1985 the US Government announced a ban on the importation of Krugerrands as part of sanctions against South Africa. In 1986, the European Community introduced its own package of sanctions, also banning the importation of the coin. The US was always the Krugerrand’s largest market. From 1975 until the 1985 import ban, approximately 22 million Krugerrands had been imported into the US. © 2013 GoldCore 6 A Comprehensive Guide to the Krugerrand Trading of previously imported Krugerrands was still allowed but discouraged due to various anti-apartheid campaigns. Annual sales of new coins dwindled from 1985 to 1990 and although sanctions were subsequently lifted, new coin sales remained low for the rest of the 1990s due to a languishing gold price, but also because the existing holdings of Krugerrands were so large. It wasn’t until the early 2000s that new Krugerrand sales again strengthened as the gold price rose. © 2013 GoldCore 7 A Comprehensive Guide to the Krugerrand Worldwide Markets and Dealers __________________ rugerrands have a sophisticated primary distribution network and secondary K trading network. The Johannesburg Stock Exchange (JSE) facilitates a primary market where new Krugerrands are issued, and a secondary market where they trade, just like an equity market. In the primary market, the South African Reserve Bank sells Krugerrands via tender but only banks are allowed to bid on these tenders. The JSE claim to be the largest and best regulated secondary market for trading the coins in South Africa. On the JSE, stockbrokers trade Krugerrands just like stocks, based on their gold bullion value. The coins even have their own trading symbol KR as well as a futures contract KGRD, and the rules and directives of the exchange govern Krugerrand trading, just like stock trading. The Rand Refinery is the sole distributor of Krugerrands internationally via authorised distributors. These include a number of major UK and European based bullion banks and refineries, and appointed distributors in the US. Local banks and dealers (depending on country) can then purchase through the authorised distributors as well
Load more

Recommended publications
  • KRUGERRAND the Worst Way to Own Gold
    THE KRUGERRAND The Worst Way To Own Gold Michigan Coalition for Human Rights 4800 Woodward Avenue Detroit. Michigan 48201 (313) 832-4400, ext. 148 WBYTARGET TBE KRUGERRAND? he world of gold bullion trading is filled with T handsome coins and medals produced in many parts of the globe. Among these, in addition to the Krugerrand, are coins from Canada, Austria, Mexico A picket line at the First National Monetary Corporation of and the Olympic gold coinage minted in the United Southfield, Michigan, protesting the company's sale of Krugerrond Dealers Invited To Tolk States. Why then are groups and organizations from Krugerrands. The protest was organized by the Michigan The MiChigan Coalition for Human Rights (MCHR) all over the world focusing on the Krugerrand? Coalition for Human Rights. has met individually with close to every major Krugerrand dealer in the metropolitan Detroit area. The Krugerrand is the world's best sefling gold The vast majority of the coin dealers have been very coin. The gold coin is mined, minted and marketed cooperative and receptive to the campaign and by the South African government. The revenue earn­ GOLD MINING IN SOUTH AFRICA many have agreed to the following pledge: ed from the sale of gold and Krugerrands play an in­ tegral part in supporting the South African economy. The labor conditions under which the gold for the • stop advertising and promoting South African In 1983, 50% of South Africa's foreign exchange Krugerrand is mined are appalling. Because of South gold coins. was derived from gold sales ($9.15 billion), while Africa's infamous 'pass laws' and racial restrictions, • encourage customers to buy similar bullion gold 16 % of all gold production in that same year was most of the miners live in huge, barrack-like, coins from Canada, Austria, Mexico and the used to manufacture Krugerrands.
    [Show full text]
  • INFORMATION BULLETIN #50 SALES TAX JULY 2017 (Replaces Information Bulletin #50 Dated July 2016) Effective Date: July 1, 2016 (Retroactive)
    INFORMATION BULLETIN #50 SALES TAX JULY 2017 (Replaces Information Bulletin #50 dated July 2016) Effective Date: July 1, 2016 (Retroactive) SUBJECT: Sales of Coins, Bullion, or Legal Tender REFERENCE: IC 6-2.5-3-5; IC 6-2.5-4-1; 45 IAC 2.2-4-1; IC 6-2.5-5-47 DISCLAIMER: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is inconsistent with the law, regulations, or court decisions is not binding on the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein. SUMMARY OF CHANGES Other than nonsubstantive, technical changes, this bulletin is revised to clarify that sales tax exemption for certain coins, bullion, or legal tender applies to coins, bullion, or legal tender that would be allowable investments in individual retirement accounts or individually-directed accounts, even if such coins, bullion, or legal tender was not actually held in such accounts. INTRODUCTION In general, an excise tax known as the state gross retail (“sales”) tax is imposed on sales of tangible personal property made in Indiana. However, transactions involving the sale of or the lease or rental of storage for certain coins, bullion, or legal tender are exempt from sales tax. Transactions involving the sale of coins or bullion are exempt from sales tax if the coins or bullion are permitted investments by an individual retirement account (“IRA”) or by an individually-directed account (“IDA”) under 26 U.S.C.
    [Show full text]
  • Us Sanctions on South Africa
    i 584 .. ...-.. ... .... .. June 5, 1987 U.S. SANCTIONS ON SOUTH AFRICA.. THE RESULTS ARE IN I. INTRODUCIION The first results of Western economic and political sanctions against the government of South Africa are in: Apartheid's supporters have been strengthened while those seeking reforms have been weakened. "I'he evidence of this is abundant: ' . ++ In the whites-only election last month, the ruling National Party (NP)was returned with even greater control over the Parliament than before. ++ In the election, the racially moderate Progressive Federal Party (PW) was replaced as the official opposition party in the Parliament by the pro-apartheid Conservative Party (CP). This means that for the first time since the institutionalization of apartheid in 1948, the Pretoria government will be criticized in 'the Parliament not for moving too slowly to abolish apartheid, but for moving too quickly. ++ U.S. influence in Pretoria has been reduced, as the South African government has rejected what it views as unacceptable foreign interference in its internal affairs. ++ Economic sanctions have not damaged the South African economy severely. Most South African producers have found ' new markets for their products. Further, sanctions have caused a short-term stimulus, as the economy moves to create its own substitutes for former imports. ++ To the extent that the effects of sanctions have been felt in South Africa, they have been felt by blacks--precisely the people they were supposed to help. ++ Disinvestment by U.S. corporations doing business in South Africa also has set back the anti-apartheid campaign. U.S. corporatioh have sold their manufacturing plants and assets to South African businessmen at firesale prices.
    [Show full text]
  • The Krugerrand Connection
    Buying A Piece of Apartheid: The Krugerrand Connection http://www.aluka.org/action/showMetadata?doi=10.5555/AL.SFF.DOCUMENT.acoa000623 Use of the Aluka digital library is subject to Aluka’s Terms and Conditions, available at http://www.aluka.org/page/about/termsConditions.jsp. By using Aluka, you agree that you have read and will abide by the Terms and Conditions. Among other things, the Terms and Conditions provide that the content in the Aluka digital library is only for personal, non-commercial use by authorized users of Aluka in connection with research, scholarship, and education. The content in the Aluka digital library is subject to copyright, with the exception of certain governmental works and very old materials that may be in the public domain under applicable law. Permission must be sought from Aluka and/or the applicable copyright holder in connection with any duplication or distribution of these materials where required by applicable law. Aluka is a not-for-profit initiative dedicated to creating and preserving a digital archive of materials about and from the developing world. For more information about Aluka, please see http://www.aluka.org Buying A Piece of Apartheid: The Krugerrand Connection Alternative title Buying A Piece of Apartheid: The Krugerrand Connection Author/Creator Brooks, David Publisher American Committee on Africa Date 1985-02 Resource type Pamphlets Language English Subject Coverage (spatial) South Africa, United States Coverage (temporal) 1983-1985 Source Africa Action Archive Rights By kind permission of Africa Action, incorporating the American Committee on Africa, The Africa Fund, and the Africa Policy Information Center.
    [Show full text]
  • Discovery of Gold in South Africa Physical Attributes
    Discovery of gold in South Africa Physical attributes Gold was discovered on a Transvaal farm, There are many physical aspects of the yellow Langlaagte, on the Witwatersrand in 1886 by two metal which are truly amazing. prospectors. This discovery caused a turning point in South African history. Far more than diamonds, it Gold is a chemical element in the periodic table changed South Africa from an agricultural society to that has the symbol Au and atomic number 79. become the largest gold producer in the world. The Gold is a soft, shiny, yellow, dense, malleable, gold discovered ran for miles and miles underground, ductile (trivalent and univalent) transition metal, ‘an endless treasure of gold’. gold does not react with most chemicals but is attacked by chlorine, fluorine and aqua regia. The As news of the gold find spread throughout Southern metal occurs as nuggets of gold, or grains of gold Africa, various mining towns develped along the curve in rocks and in alluvial deposits and is one of the of the underground gold reef. This curve got named coinage metals. the Witwatersrand, attracting hundreds and hundreds of people seeking their fortune. Gold is the most malleable (able to be hammered into very thin sheets) and ductile (able to be drawn More and more factory-made goods were being into a fine wire) of all metals. shipped from England to meet the demands of the mines and the communities that were developing It is so malleable that a goldsmith can hammer one around them. Goods had to be transported and ounce of gold into a thin translucent wafer covering railways had to be built, resulting in new towns being more than 100 square feet only five millionths of built around the stations, starting from the East an inch thick.
    [Show full text]
  • The Mother of All Bullion Coins: the Krugerrand
    EA ON M H IT W N O I T A I C O S S A N I S W E N Y C P N U E B R L I R S U H C E Y D B VOLUME 4 / MARCH 2017 The Mother of All Bullion Change Arrives Coins: The Krugerrand for the UK As we go to press, the new £1 coin, which is used throughout the UK (unlike banknotes, which are different according to whether you live in England, Scotland or Northern Ireland), will be going into circulation. This is the first redesign in over three decades (the £1 coin was first issued in 1983). And it is being upgraded because of increasing levels of counterfeiting: approximately one in 30 are fakes, a fact that has helped obtain the acceptance and support of the cash handling community, banks, retailers etc for the changeover. The new £1 is unique and distinctive on a number of fronts. For a start, it is 12-sided rather than round. It is bimetallic (with a nickel-brass outer ring and a nickel-plated Had it not been for the end of the gold The idea to issue gold coins as an alloy inner ring) and contains a latent image standard and the removal of all legal investment was not fundamentally new. (which changes from the £ symbol to the barriers for the private gold trade, the In many countries, circulation coins made number 1 when tilted), microlettering and Krugerrand would not have become so of gold, as they had been in use prior milled edges with grooves on alternate sides.
    [Show full text]
  • United States Strategic Mineral Policy
    Loyola of Los Angeles Law Review Volume 21 Number 1 Article 3 11-1-1987 United States Strategic Mineral Policy Larry J. Bradfish Follow this and additional works at: https://digitalcommons.lmu.edu/llr Part of the Law Commons Recommended Citation Larry J. Bradfish, United States Strategic Mineral Policy, 21 Loy. L.A. L. Rev. 107 (1987). Available at: https://digitalcommons.lmu.edu/llr/vol21/iss1/3 This Notes and Comments is brought to you for free and open access by the Law Reviews at Digital Commons @ Loyola Marymount University and Loyola Law School. It has been accepted for inclusion in Loyola of Los Angeles Law Review by an authorized administrator of Digital Commons@Loyola Marymount University and Loyola Law School. For more information, please contact [email protected]. UNITED STATES STRATEGIC MINERAL POLICY I. INTRODUCTION The United States is dependent on foreign sources for many of its strategic minerals.' In 1985, for example, this country imported more than ninety percent of its columbium, manganese, mica, strontium, baux- ite, cobalt, tantalum and platinum group metals.' Historically, the United States has relied on several politically unstable or repressive re- gimes for some of these strategic mineral supplies. For example, in the early part of this decade, the Republic of South Africa was the dominant source of American imports of chromium, manganese and platinum group metals.3 The United States also imported much of its cobalt from Zaire during the 1980's.4 During this same period, Chile was this coun- try's largest copper supplier.5 Despite abusive human rights practices6 in these mineral-rich countries, the United States has continued to import their minerals, and thus support them economically, while offering only token signals of disapproval of these countries' human rights abuses.
    [Show full text]
  • King Solomon's Mines Revisited
    King Solomon's Mines Revisited http://www.aluka.org/action/showMetadata?doi=10.5555/AL.SFF.DOCUMENT.cbp1006 Use of the Aluka digital library is subject to Aluka’s Terms and Conditions, available at http://www.aluka.org/page/about/termsConditions.jsp. By using Aluka, you agree that you have read and will abide by the Terms and Conditions. Among other things, the Terms and Conditions provide that the content in the Aluka digital library is only for personal, non-commercial use by authorized users of Aluka in connection with research, scholarship, and education. The content in the Aluka digital library is subject to copyright, with the exception of certain governmental works and very old materials that may be in the public domain under applicable law. Permission must be sought from Aluka and/or the applicable copyright holder in connection with any duplication or distribution of these materials where required by applicable law. Aluka is a not-for-profit initiative dedicated to creating and preserving a digital archive of materials about and from the developing world. For more information about Aluka, please see http://www.aluka.org King Solomon's Mines Revisited Author/Creator Minter, William Publisher New York: Basic Books Date 1986-00-00 Resource type Books Language English Subject Coverage (spatial) Southern Africa (region), Western Europe (region), United Kingdom, North America (region), United States Coverage (temporal) 1870 - 1985 Rights By kind permission of William Minter. Description CHAPTER 1 The Lion's Share: Britain and Southern
    [Show full text]
  • Report on the Krugerrand
    Report on the Krugerrand http://www.aluka.org/action/showMetadata?doi=10.5555/AL.SFF.DOCUMENT.acoa000463 Use of the Aluka digital library is subject to Aluka’s Terms and Conditions, available at http://www.aluka.org/page/about/termsConditions.jsp. By using Aluka, you agree that you have read and will abide by the Terms and Conditions. Among other things, the Terms and Conditions provide that the content in the Aluka digital library is only for personal, non-commercial use by authorized users of Aluka in connection with research, scholarship, and education. The content in the Aluka digital library is subject to copyright, with the exception of certain governmental works and very old materials that may be in the public domain under applicable law. Permission must be sought from Aluka and/or the applicable copyright holder in connection with any duplication or distribution of these materials where required by applicable law. Aluka is a not-for-profit initiative dedicated to creating and preserving a digital archive of materials about and from the developing world. For more information about Aluka, please see http://www.aluka.org Report on the Krugerrand Alternative title Report on the Krugerrand Author/Creator Rothmyer, Karen; American Committee on Africa Publisher American Committee on Africa Date 1977-08 Resource type Reports Language English Subject Coverage (spatial) United States, South Africa Coverage (temporal) 1975 - 1977 Source Africa Action Archive Rights By kind permission of Africa Action, incorporating the American Committee on Africa, The Africa Fund, and the Africa Policy Information Center. Description Gold coin. Gold mining industry.
    [Show full text]
  • Against Apartheid
    REPORT OF THE SPECIAL COMMITTEE AGAINST APARTHEID GENERAL ASSEMBLY OFFICIAL RECORDS: FORTY-FOURTH SESSION SUPPLEMENT No. 22 (A/44/2~) UNITED NATIONS New York, 1990 NOTE Symbols of United Nations documents are composed ofcapital letters combined with figures. Mention of sl!ch a symbol indicates a reference to a United Nations document. The present. report was also submitted to the Security Council under the symbol S/20901. ISSN 0255-1845 1111 iqlllllll l~uqllHh) I!i li'alHlltHy 19~O 1 CONTENTS LBTTER OF TRANSMITTAL •••••••••••••••••••••••••••• l1li •• l1li ••••••••••••••••••••••• PART ONE ~~AL RBPORT OF THE SPECIAL COMMITTEE •...•....••............... 1 275 2 I • INTRODUCTION ••••••••••.•••.••.••.......•.......•. l1li •••••••• 1 1 3 11. RBVIBW OF DEVELOPMENTS IN SOUTH AFRICA .........•.......... [, q4 1 A. General political conditions !l 15 4 B. Repression of the r~pulation .......................... 1.6 4" () 1.. Overview ...•.......•.............................. 1(; fi 2. Political trials, death sentences and executions .. I.., - 7.4 r; 3. Detention without trial ?!l 7.11 IJ 4. Vigilante groups, death squads and covert activities .. ' . 29 35 y 5. Security laws, banning and restriction or(\ers ..... lfi :19 11 6. Forced population removals ..••....••...•.......... 10 .. 45 12 7. Press censorship I ••••••••• 46 - 47 13 C. Resistance to apartheid .•.......•..................... 411 .. 03 13 1. Organizing broader fronts of resistance .....•..... 40 5n 11 2. National liberation movements . !i9 1;1 I. t) 3. Non-racial trade union movement Ij tl 1;9 l" 4. Actions by religious, youth and student gr Il\lllt~ ••.. "10 .,., III 5. Whites in the resistance . "111 1I:cl ),0 1)4 D. Destabilization and State terrorism . " 'I 7.2 Ill. EXTERNAL RELATIONS OF SOUTH AFRICA , .
    [Show full text]
  • South Africa's Gold Coin Published with the Assistance of the Africa Office of the National Council of Churches
    southern at rica PERSPECTIVES A 7/77 THE KRUGERRAND: Facts about South Africa's Gold Coin Published with the assistance of the Africa Office of the National Council of Churches. "Native politics in a republic such as ours where so many kaffir tribes live among us and all around us offer very exceptional difficulties. The chief principle that must always be borne in mind is that savages must be kept within bounds... -Paul Kruger (early Afrikaner leader) The full-page advertisement in the September 27, 1977 issue of the Boston Herald American showed a South African Krugerrand held by a well-manicured hand. In bold letters, the ad proclaimed, "The Krugerrand, the world's best way to own pure gold." The advertisement was part of a multi-million dollar promotional campaign which has turned the US into the number one Krugerrand market in the space of a year, a campaign which has successfully convinced a large number of US consumers that the Krugerrand is both attractive and a sound investment. Yet each Krugerrand sold in the US serves directly to prop up the system of apartheid which, with its inherent racism and injustice, is the cornerstone of South African society. WHAT IT IS over to the government. The government itself sells most The Krugerrand is a coin about the size of a half-dollar of the gold overseas in the form of bullion. Krugerrands containing one troy ounce of pure gold. While consider are handled differently. The Chamber of Mines gives the ed as legal tender in South Africa, the coin is intended gold for Krugerrands to the government mint, which mainly for foreign investors.
    [Show full text]
  • The Offer of Krugerrand Custodial Certificates Does Not Constitute an “Offer to the Public” (As Defined in the Companies Act, No
    The offer of Krugerrand Custodial Certificates does not constitute an “offer to the public” (as defined in the Companies Act, No. 71 of 2008 (as amended)) (“Companies Act’) and this Offering Circular does not, nor is it intended to, constitute a “registered prospectus” (as is defined in the Companies Act) prepared and registered under the South African Companies Act. To the extent that Krugerrand Custodial Certificates are offered for subscription, such offer is made in terms of section 96(1)(b) of the Companies Act such that the total acquisition cost of the Krugerrand Custodial Certificates for any single addressee acting as principal is equal to or greater than ZAR 1 000 000. Accordingly, any offer made in terms of this Offering Circular does not constitute an "offer to the public or any section of the public" within the meaning of the Companies Act. PROSPECTIVE PURCHASERS OF ANY KRUGERRAND CUSTODIAL CERTIFICATES SHOULD ENSURE THAT THEY UNDERSTAND FULLY THE NATURE OF THE KRUGERRAND CUSTODIAL CERTIFICATES AND THE EXTENT OF THEIR EXPOSURE TO RISKS, AND THAT THEY CONSIDER THE SUITABILITY OF THE KRUGERRAND CUSTODIAL CERTIFICATES AS AN INVESTMENT IN THE LIGHT OF THEIR OWN CIRCUMSTANCES AND FINANCIAL POSITION OFFERING CIRCULAR For the listing of Krugerrand Custodial Certificates on the Exchange Traded Fund sector of the JSE created, listed and issued by FirstRand Bank Limited The Krugerrand Custodial Certificates will be listed on the “Exchange Traded Funds” sector of the JSE under the abbreviated name and alpha code “KCCGLD” and ISIN Code ZAE000195830 with effect from the commencement of business on Monday, 10 November 2014 and traded on the JSE through any authorised user of the JSE.
    [Show full text]