Mesh.trade MD Connie Bloem believes the future of gold investment must be inclusive, with tokenisation as the solution.
“The potential gold holds as a safe, proven hedge against market volatility makes it extremely attractive as an asset class, and tokenisation makes it accessible to just about anybody,” she says.
Krugerrand tokens are now live on Mesh.trade’s digital capital markets platform.
Each token represents full ownership of a physical, uniquely numbered 1oz bullion Krugerrand, securely stored at Brink’s, an internationally recognised vault facility.
The coins, sourced from Rand Refinery, are fully backed and vaulted.
“What’s unique about this offering is that because the gold has been tokenised, investors can purchase any fraction of a Krugerrand coin, starting with as little as R50,” Bloem explains.
Investors can buy a full 1oz Krugerrand token or accumulate fractional investments over time. Once they reach the equivalent of 1oz, they can redeem their token for a physical coin.
“TroyGold, the issuer, will securely deliver the Krugerrand to their chosen location,” she adds.
Until 25 March, Mesh.trade is offering these tokenised gold investments at the lowest retail price in the market, with discounts of up to 3% off the prevailing market price.
Gold’s appeal as a safe haven has surged amid global uncertainty, with prices hitting a record $3,000 per ounce on 14 March. Over the past year, gold has delivered over 40% returns in both ZAR and USD terms. Analysts attribute this to trade wars, stubborn inflation, and economic instability. South Africa is no exception, with the rand and local markets feeling the pressure.
Gold’s scarcity adds to its value. All the gold ever mined would fit into a 22-meter cube, and recoverable reserves are dwindling. Historically, gold thrives during high inflation, such as during the 1970s oil crises. Today, central banks, particularly China, are boosting gold reserves amid growing distrust in traditional monetary systems.
In rand terms, gold has grown at a compound annual rate of 15% since 1971, with its value increasing by 183,000% over the same period.
Breaking Down Barriers
While gold demand in South Africa remains strong, barriers to entry have made it difficult for many to invest. Mesh.trade’s innovative platform now allows retail and institutional investors to buy fractional physical gold through Krugerrand-backed tokens, democratising access to this timeless asset.
