Where the hobby of rare coin collecting used to be the domain of established enthusiasts, bidders in their twenties and thirties are now aggressively competing to acquire quality bullion and rare proof coins, says Coleske. (Photo: Bassani’s/Facbook)
It is now the younger generation that is interested in old precious metals and coins these days.Landon Coleske, senior numismatic expert at Bassani Auction House, says the market has changed beyond recognition in the past five years and now includes large numbers of millennials and generation Z investors.
Where the hobby used to be the domain of established enthusiasts, bidders in their twenties and thirties now compete aggressively to acquire quality bullion and rare proof coins, says Coleske.
He believes that this trend, driven by the aftermath of the 2008 financial crisis, the covid-19 pandemic and record inflation worldwide, is expected to serve as a major driving force during Bassani’s latest auction this coming Sunday.
“They (younger investors) understand the intrinsic metal value as well as the scarcity aspect. That combination has created a whole new market, and Krugerrands are firmly in their sights,” says Coleske.
The upswing in the local market currently also coincides with the exceptional performance of precious metals, adds Coleske. Silver more than doubled in value last year, while the price of gold rose by more than 60%.
For South African investors, the tax advantage is also a strong attraction, as profits on Krugerrands are exempt from capital gains tax in many circumstances as personal use assets.
(Photo: Bassani’s/Facebook)
The undisputed highlight of Sunday’s auction will be an extraordinary 2019 Remembrance Day Privy Prestige set. Dillon Bassani, chief executive officer of the company, says with a worldwide mintage of only 50 sets, it is among the rarest modern Krugerrand products ever issued.
This set is a close second behind the legendary 2020-VE-Day set – to date this rarest set – of which a copy previously came under Bassani’s hammer for R314 400.
Historical coins with royal provenance will also be available. Among the most anticipated lots is an 1893 ZAR half-pound that formerly belonged to King Farouk of Egypt. Farouk was the owner of the historic Single 9-pounder, which was sold by Heritage Auctions in January last year for a record sum of R41 million.
Other prestigious assets coming under the hammer include a rare 1967 Krugerrand from the very first vintage of the coin program, as well as a complete 1992 Prestige Krugerrand set.
“Where previous generations focused primarily on historic circulation coins, today’s buyers are embracing limited editions and modern rarities with low mintages,” says Coleske. “As global demand tightens and supplies shrink, this auction offers opportunities that may not appear again for years.”