Tuesday, 6th September 2005 (3569 views)

Kruger rands could be replaced by Exchange Traded Funds (ETFs) in South Africa.

Dr Vladimir Nedeljkovic of Absa Corporate and Merchant Bank claims that Kruger rands will eventually be phased out, reports Mining Weekly.

The Kruger Rand was launched in 1970 and is the coin commonly used to trade gold within South Africa.

However, gold can be traded in other forms such as bars, a vast array of coins from the Canadian Gold Maple Leaf to the Singaporean Singapore Lion, and sometimes as lumps in developing countries.

Gold ETFs have already proved popular in South Africa as investors shy away from the gold coins whose outlets are currently being scaled down.

An ETF operates similarly to a unit trust fund and lets investors buy gold on an exchange. It offers security as Rand Refinery backs it with allocated gold bullion bars.

NewGold, launched in conjunction with the World Gold Council, was South Africa's first ETF.

 

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