Contribute R10 to an office Stokvel (savings club) per week

http://sites.google.com/site/pricedropclub/

4 June at R 840 and 25 July at R 880. We now own 1,75 oz of fine gold!

One more 1-tenth Krugerrand. Bought at R 870,00. We now own 1,55 fine oz of the yellow stuff!

Three more 1-tenth Krugerrands. Bought at R 870,00 each. We now own 1,45 fine oz of the yellow stuff! Not much, but definitely better than nothing. When we started just more than one year ago we bought our first coin at R 560,00. A whopping 55% increase in the purchase price. It just shows you how the currency has slipped in relation to gold, and the official inflation rate is around 7% – what nonsense, someone is lying to somebody!

If have been burning to write this entry for some time.

It is more expensive to buy gold in the smaller denominations. So I have been holding off a bit. So today I had (the club had) enough money to buy a one-quarter oz gold krugerrand (R 2000).

In ounces we now own 1,15 oz of gold – at $920 per fine zo we have $1050 or in SA Rand (at R 7.63) R 8 011 – after a year. We started on, I think the 12th Feb last year.

BTW we bought the first tenth at R 560 and today that coin could have been sold back at R 700 (Purchase price R 810).

We are 16 individuals participating now. A total of R 6 500 paid in.

We have R 800 in cash (in addition to the 9 coins). I am leaving it in a savings account to be able to pay out any individual in cash if they wish to withdraw from the club.

Interest earned so far is R 1.32 (The theoretical “profit” on the coins since our start amount to (about) R 200. I however do not regard it as a profit – it is a measure of the fall of the Rand in relation to gold.

It gives me great pleasure to announce the purchase of our 9th coin. Price = R 630 (11 Oct 2007). I should have bought it yesterday which was Kruger’s birthday.

We have purchased our eighth coin (9 Oct 2007). Cost = R 630,00. Soon we will have enough to turn this investment into a productive asset such as shares in… oh, I don’t know – SAB-Miller perhaps?

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We not only got a new member. We bought another coin (R 630).
The dollar gold price shot up to $ 704,40 while the Rand is sitting at 7.25 Rand to the Dollar (Round R 510 per fine oz.)

Well the test is going to be where things sit in the long term and since gold is the real money it is not he price of gold that shot up, but that the value of the dollar is declining – as one would expect under the current circumstances – the war, the deficit, the bond crisis and so on.

I believe that the yellow stuff is a good store of value until one can turn it (the stored value) into productive use.