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Monday, 13th July 2009 (6042 views)

A recent law change means South Africans are now permitted to own gold bars for the first time since 1911.

Investors in the country had previously been restricted to the ownership of gold jewellery and bullion coins such as the Krugerrand.

Personal Finance columnist Bruce Cameron said that has changed with the introduction of new licences that allow the production of minted gold bars.

Refinement company Metal Concentrators received its licence last month and is permitted to use up to 20,000 troy ounces of gold to produce 10g, 50g and 100g bars.

Chief executive Bernard Stern said under the terms of the licence, the bars must be manufactured in a similar way to gold coins, with blank bars "punched out" of pure gold then stamped with a design.

Manufacturers must have a quality assurance process in place and the gold used must have a purity of 99.99 per cent, Mr Cameron noted.

Furthermore, every gold bar has to have its own certification confirming its mass and gold assay, as well as an individual serial number and tamper-resistant packaging.

According to Commodity Online, the law change is likely to trigger a rise in demand for gold bars among South African investors.

 

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