Distributor of gold investment, bullion and collectable coins the South African Gold Coin Exchange (SAGCE) reports that, despite the recession that has forced many retail stores to close their doors, it continues to open new Scoin shops at regular intervals.

Earlier this year, three Scoin stores opened in Tyger Valley and Somerset West, in the Western Cape, and at the La Lucia Mall, in KwaZulu-Natal. This raises the total number of Scoin outlets countrywide to 14 stores, complemented by various centre court displays drawing attention to the brand.

“And there are more shops on the way. The company is currently planning to launch a few stores abroad, the first being in the UK. Business is flourishing as investors hedge their capital against global financial 
uncertainty through the purchase of gold coins and medallions,” says SAGCE’s executive chairperson Alan Demby.

He points out that success breeds success, noting that the vast majority of Scoin customers bought their gold coins at prices lower than present ruling prices.

“This is not only a South African phenomenon. There’s a shortage of gold coins the world over. Given that gold is the 
ultimate hedge against all forms of uncertainty, this is not at all surprising.”

Gold, which is quoted in US dollars, results in many currencies in developing countries being subjected to the vagaries of the market, whether influenced by economic or political factors.

“In truth, with the fallout in the US market and the subprime debacle spreading to the UK and Europe, even those currencies took a hit. Sterling gold dropped by 25%. Gold coins acted as a hedge for people in the UK, saving a lot of people from bankruptcy,” Demby explains.

Further, he says that gold is the ultimate insurance policy, but without the involvement of an insurance company and without all the attendant costs, which often decimates returns.

Meanwhile, the SAGCE has also marketed a wide range of gold and precious metal coins minted from all the leading mints of the world, including the British Royal Mint, the United States Mint, the Greek Mint and the Monnaie de Paris.

The company is also engaged in several joint ventures (JVs), comprising the South African Mint, the Mint of Norway, the Mint of Berlin and Perth Mint to widen the range of its production.

“The arrangements with these different mints around the world give the company a source of 
ongoing supply of coins and medallions to satisfy its clients’ needs. 
“The JVs also ensure a steady supply of stock, which is helpful in stocking the company’s shops,” Demby explains.

The relationship with Perth Mint was formed for the SAGCE CowParade international art 
programme, which raises 
awareness, as well as funds for local charities. “The mint makes the coins for this project. There have been over 7 000 different designs since the programme’s launch. These coins are minted in colour, using a special pro-
cess,” Demby adds.

Further, Demby explains that the SAGCE has secured the global rights to market the Mandela Medallions, which are issued by the Mint of Norway as part of its Nobel Laureate programme. “This programme has been particularly successful in South Africa, with medallions of one- tenth of an ounce up to 1 kg of gold being minted. International collectors are also particularly 
interested in the Mandela Medal-lions, as he is an icon of the 
twenty-first century.

“The Scoin shops have not only 
helped the SAGCE to promote gold ownership, but have also 
attracted new coin and gold 
buyers into the world of gold. Our website, which is international, also attracts international inves-tors and collectors,” Demby 
concludes.

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