🏆 Storing Value in the Immortal…
Hi there,
AR for the visually impaired? No problem, scientists just invented a way to power smart contact lenses with human tears.
In this Open Letter:
- On the money: Why Gold is basically immortal.
- Up for grabs: Solid gold and lekker merch.
- Your iPhone 15, mall space & calling from X.
- Go deep: How to build a kasi-focused startup 101.
- No time to game: The poll results are in.
TRENDING NOW
All that Glitters is Gold
Gold. It’s one of the oldest and most enduring forms of money and investment. First minted on the order of one King Croesus of Lydia (ancient Turkey) a mere 550 BC. And to this day, the Krugerrand – which has its origins in South Africa – is the most-traded bullion coin in the world.
But gold is more than just a precious metal. It has certain properties that make it immune to most of the risks and devaluation that other forms of investment and currency are susceptible to – in fact, there’s a little-known “secret” reason why the gold price hedges your savings against inflation.
But what makes gold such good money?
Let's delve into the scientific realm for a moment. Gold is the element in the physical world that best fits the requirements for stable money; it doesn't degrade or tarnish with oxygen, is scarce, malleable and uniform – the requisites for a long-term store of value.
Basically, we can melt gold from ancient times and use it to cast Krugerrands today, and it would have the exact same quality and quantity as in its previous form.
Additionally, the complexity and cost of mining means global gold mining rates tend to align with population growth, keeping supply in check.
And, finally, as inflation pushes prices up, the cost to mine tends to follow, pushing up gold prices, too.
Holds the Line in Tough Economic Times
We all know that central banks sometimes inject cash into faltering economies. While this may offer short-term benefits, it typically devalues the currency and spurs inflation.
Gold, on the other hand, remains steadfast. In fact, it retained its value so well you would be paying between 30 and 60% less for some staples if you had paid with gold.
A loaf of bread in 2008, for example: Had you bought the bread using gold, it would've cost 0.00095 ounces of gold. Fast-forward to 2022, it only cost 0.00064.
A packet of smokes that cost 0.00325 ounces of gold back in 2008, only cost 0.00169 in 2022. See the pattern?
In Rand value, of course, the price of bread increased 222% and a pack of cigarettes rose 148%, in that same time. That's why gold makes for better money – it retains its purchasing power... not like your paper currency or digital FIAT money.
The Challenges of Traditional Gold Investments
Despite its allure, traditional ways of buying gold present a few hurdles. Safety is often a concern when buying from certain dealers. And, because it’s non-fractional, you have to buy at least an ounce at a time – no small investment.
Finally, storing a lot of gold securely is a logistical and security challenge most people can’t handle (unless you’re the president, in which case the couch does just fine).
But if you do prefer buying gold in physical terms yourself and high-tailing it out, you'd always go with dependable and reliable sources like Scoin and SA Bullion.
Local Golden Moves
Digital: This is where Troygold comes in. This digital platform offers a solution to the challenge of investing and storing gold bullion by allowing for fractional gold purchases and secure, insured storage on your behalf.
Fractional: Troygold lets you invest in gold Krugerrands digitally from as little as R1. The company buys and vaults kilos of 1oz Krugerrands coins, then numbers, digitises and fractionalises each coin, making it available for sale on the app.
Financial Tools: Troygold is also pioneering a Mastercard and credit offering on your gold holdings' value. You can access instant liquidity via a 75% credit facility against your gold, spendable globally via the Troygold Mastercard.
With innovations like Troygold, overcoming traditional challenges has never been easier. It may be time to include this age-old asset in your modern-day portfolio.
Note from the editor: This article is not financial advice but rather provides insight into an innovation that allows fractional selling of gold. Before making investment decisions, always do your own research.
OVER TO YOU
What is your value store of choice?
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IN SHORT
🏪 Opening the Doors. More than 2’000 shopping malls and retail spaces are set to see some big changes off the back of Pick n Pay, Shoprite and now Spar ending their long-term lease agreements. The move will create opportunities for Small, Medium and Micro Enterprises (SMMEs) as well as Historically Disadvantaged Persons-owned (HDPs) supermarkets.
🍎 Save the date. Apple has confirmed the iPhone 15 launches on 12 September. And rumour has it they’re gonna try to get a step closer to having no borders around the display and no cutouts for cameras or sensors. Let’s see.
🤧 Oof. After seeing revenue decline from R13.3b to R11.9b, mobile network operator Cell C just posted a mysterious profit of R4.6b. This does seem odd.
📲 Call from your X. Elon Musk has announced that video & audio calls are coming to X. It’s set to work on iOS, Android, Mac & PC and doesn't need a phone number since “X is the effective global address book”. All fun and games until your trolling and meme-posting gets interrupted by someone trying to reach you about your car’s extended warranty.
🗳️ Taking a break. According to a poll by the Cape Independence Advocacy Group (CIAG), some 68% of Western Cape voters support a referendum on Cape independence (breaking away from South Africa).
THE THREAD
How to Build a Kasi-Focused Startup
If you’re battling to strategise a way into SA’s R425bn kasi economy, you have to check out this week’s podcast episode. There’s no guest, just our team deep-diving into how you could build a business that serves and taps into the existing township market.
It’s a quick 30 minutes with some gold insights…
Just the highlights
- Formalised housing on the horizon
- With PPC Cement saying their biggest Cape Town market is people upscaling from shacks to built property in city townships, the City Council says it’s looking into enabling residents to do this with pre-approved set plans.
- This will be a big deal because it creates registered housing, which in turn will require data, unlocking a host of tech opportunities that just weren’t there before – get the scoop here.
- Back-room rentals are bigger than you think
- It’s not just a South African township thing, as Renier mentions here, the Irish government has started giving people tax breaks for building extra rooms onto their homes to rent out.
- This can be a kasi game-changer, as more people get income-generating property, creating a need for smart property management systems and software.
- Commercial property is not just for corporates
- A bit of further research shows that, in a township setting, commercial property for rent can be as simple as a resident opening their current prime-situated residence up, and hiring an assistant to run it as a spaza shop or other business.
- As mentioned here, founders should take note because while the barriers to entry into traditional PropTech are steep, this “informal” sector has massive scale, and the need for smart tech to manage property is just as important (not to mention none of the big guys are looking that way, yet).
- Formalising the informal economy is a big opportunity
- As mentioned here, an ideal entrepreneurial environment supports people doing and scaling business. But it’s hard for government to invest in townships because all this transacting is going on in an informal space.
Now, you don’t want to go in and tax everyone, ‘cos that’ll kill it or force it elsewhere, but finding smart ways to bring some formality to the informal economy is the key to unlocking even more opportunities in SA’s townships. - And, honestly, tech seems the only way to do this effectively and at scale.
Or if podcast app is your vibe, catch them here:
Like our podcast? Remember to subscribe and never miss an episode.
THE RESULTS
Ha ha, last time we asked what your fave game was, and 51.8% say there's no gaming, just minding the wee ones.
⬜️⬜️⬜️⬜️⬜️⬜️ 🎮 Call of Duty (3%)
⬜️⬜️⬜️⬜️⬜️⬜️ 🔫 Counter Strike (3%)
⬜️⬜️⬜️⬜️⬜️⬜️ ⚔️ League of Legends (6.8%)
⬜️⬜️⬜️⬜️⬜️⬜️ ☢️ Fortnite (3%)
⬜️⬜️⬜️⬜️⬜️⬜️ 🍗 PUBG (0)
🟨⬜️⬜️⬜️⬜️⬜️ 🐉 Dota (13.8%)
⬜️⬜️⬜️⬜️⬜️⬜️ 🚔 GTA (0)
🟨⬜️⬜️⬜️⬜️⬜️ 🎲 My startup is my game (17%)
🟩🟩🟩🟩🟩🟩 😹 No time for games, I got kids (51.8%)
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