Only 500 Rugby World Cup Coins have been minted for the South African investors and collectors - but what kind of return could you expect on the coin?

Mr Alan Demby, Executive Chairman of the South African Gold Coin Exhange & The Scoin Shop - it's retailed division, was recently interviewed by Bruce Whitfield on Radio 702 - World At Six, here he highlighted some key points on the topic, "Rugby World Cup Coins".

 

                                        

  Obverse side of Rugby World Cup Coin 2007                   Reverse side of Rugby World Cup Coin 2007

 

Bruce Whitfield:
The South African Gold Coin Exchange is selling a special gold coin commemorating the 2007 Rugby World Cup. Just 500 of them have been minted ahead of Saturday's final and they are being pushed quite aggressively, and the man who is selling those is Alan Demby, who is the chairperson of the South African Gold Coin Exchange.
They are retailing at R9500 a piece Alan, and I'm sure that it is not just for the gold content. There is a little bit of sentiment thrown in there too.

 

Alan Demby:
Yes well like all these limited-edition coins there is a sort of a premium, if you will, attached to the fact that there is a limited-edition, and as you quite rightly say, there are only 500. And of course the other aspect is that it has got the logo of the International Rugby Board on it and these things always, I'm afraid, come at a price but it adds to its uniqueness and of course adds a little bit to the price. But all told, having a low mintage bodes well and let's hope the Boks will win the real McCoy.
 
Bruce Whitfield:
Absolutely, but if you buy one today at R9500 and England wins what happens to the price on Monday is it affected at all?

 

Alan Demby:
Now I'm afraid not, otherwise everyone would be hoping for a different result. You know basically the host country, which in this case is France or the Paris Mint, is given the rights to mint and make these coins and they test the market and they have a sense of what the public is interested in, they make gold and silver coins. And this particular coin, which is a half ounce gold coin, they decided or felt that the market was such that it was big enough to make 500 and the issue is all sold out basically. We have managed to get an allocation, and such was the demand from our South African clients that we in fact managed to get a few more coins, but for all intents and purposes the coin is sold out and we are just offering it to our collectors and rugby fans in South Africa.

 

Bruce Whitfield:
Okay give us an idea; the 1995 World Cup coins, there were some minted then as well. What has the gain been on that particular coin?

 

Alan Demby:
Well in fact if memory serves me right, I think the issue price was round about R3500 and today they are trading at R15 000. So that is not a bad appreciation all told.

 

Bruce Whitfield:
Would you expect the same sort of return over the next 12 years of this particular coin?

 

Alan Demby:
Let’s certainly hope so. There has been a rising tide, and that is the gold price some 12 years ago, I think in 94, gold was round about $300 an ounce and gold is trading at $756 an ounce. Some pundits out there are talking $1200 and some guys even talking $3000. So I will go along with that, but perhaps that is a bit optimistic, but if it maintains its momentum, and I think with the weakness in the dollar and the booming oil price, I think that gold is seen as a safe haven.

 

Bruce Whitfield:
That is Alan Demby, thanks very much indeed, the chairman of the South African Gold Coin Exchange. 

                                  

          Bruce Whitfield, Business Editor of                        Mr. Alan Demby, Executive Chairman of the