Most who are paid a 13th cheque regard it as a one-off bonus. If, however, it is sagely applied, the result could be a bonus that echoes eternally.

“I’m not knocking the case for using the 13th cheque to reduce one’s mortgage or bank overdraft. Yet John Citizen would be doing himself a disservice if he did not consider investing the money for continuing long-term capital appreciation,” says Alan Demby, executive chairman of the South African Gold Coin Exchange (SAGCE).

He urges that those tempted to splurge the bonus on transient goods and other depreciating assets or services should bear in mind that in the past 40 years the price of a Krugerrand has soared from R27 to R5 300.

“And with gold in an established bull trend, the years should witness a repeat performance. Even in the near term there should be considerable growth, with some predicting that bullion could soar from $760 to well above $1 200 plus.”

Demby points out that the Krugerrand is not the only 13th cheque gold option.

“Consider, for example, the gold coins and medallions featuring South Africa’s Nobel-prize winners – Mandela, Tutu, De Klerk and Luthuli. In the past 10 years a mammoth R200 million worth has been sold – at prices ranging from R500 to R400 000 apiece.”

Reasons for buying these coins and medallions include:
• South Africa’s new emerging market readily identifies with role models like Luthuli, Mandela and Tutu, with, even, De Klerk being well regarded in some circles;
• They are accessible – and marketable – thanks to SAGCE’s country-wide Scoin Shops;
• The values are readily available via the Scoin shops’ daily quotations, which relate directly to the gold price and to rarity value;
• A small royalty is paid over to the Nelson Mandela Foundation;
• When the first 24-carat gold Mandela medallion, minted by the SA Mint, came to market, it was worth R400. Today’s value? R2 500.

Everyone aspires to a gold credit card, well why not dispense with the vanity which is costly and buy some sanity in the form of an actual gold coin.