Gold is showing every sign of being one of the top investments in 2008.

So suggests Alan Demby, executive chairman of the South African Gold Coin Exchange (SAGCE), who says so seemingly bold a prediction is not especially intrepid, given the metal’s exceptional long-term performance.

“If you accept the proven maxim that the trend is your friend, you’d be short-sighted not to include an investment in gold, most conveniently through the purchase of Krugerrands, as one of your new-year resolutions,” Demby advises.

He draws attention to the following:

• If you had invested R10 000 in Krugerrands 40 years ago, that investment would today be worth almost R2,5 million;

• In 1967, Krugerrands could be bought for a mere R27 apiece – hence R10 000 could have bought 363 Krugerrands, worth almost 2,5 million at today’s price of R6 500 each;

• The average annual return on the investment over the past 40 years would have been an extraordinary 14, 7% – well in excess of the returns achieved on nearly every other investment medium.

“Nor does the considerable appeal of the investment end there,” Demby points out. “Unlike some other popular investment mediums, your holding of Krugerrands involves no annual management fees, profit shares, miscellaneous other costs such as expensively produced annual reports, or annual taxes.

“Indeed, the only demand your Krugerrands make upon your financial resources and your time is that you set aside a minute or two every few years to dust them off.”

He says that with gold currently hovering at around levels ruling in January 1980, the upside potential is “considerable”, bearing in mind that the real, inflation-adjusted 27-year price is substantially below $800 a month.