Frequently Asked Questions

Whether you're new to bullion or looking to grow your portfolio, understanding the basics is essential.

We've put together clear, practical answers to the most frequently asked questions about investing in physical gold, silver and platinum.

1. WHAT IS THE DIFFERENCE BETWEEN OWNING PHYSICAL BULLION VS THE "PAPER" OPTIONS (FIAT CURRENCIES) AVAILABLE?

Many people view "Paper" options as a simple way to invest in Gold, Silver or Platinum. These Paper options can include the following: 

  • Stocks in Gold, Silver or Platinum mining companies,
  • Gold or Silver futures,
  • Precious metals backed exchange traded funds (ETFs), 
  • Gold or Silver certificates.

Paper options offer investors a few advantages, such as:

  • Smaller amounts of capital required,
  • Low transaction costs,
  • No need for storage.

Disadvantages of paper precious metals include:

  • Counterparty risk. When owning shares in a mining company, for example, there is always the risk of the company going bankrupt, and your investment being wiped out.
  • Stock market fluctuation could negatively impact your investment.
  • You may not be entitled to any actual, physical bullion

However, we believe that the disadvantages of paper options are far outweighed by the advantages of holding physical bullion. Some of the advantages of investing in physical bullion include:

  • Physical precious metals have zero counterparty risk. Bullion, for example, cannot declare bankruptcy, or default on its obligations.
  • In the unlikely event of a global economic catastrophe, physical bullion can be used as currency to buy basic goods or services.
  • Bullion can be purchased anonymously, safely and at your convenience - as and when you please. 

2. WHAT IS THE DIFFERENCE BETWEEN MEDALLIONS AND OTHER BULLION COINS SUCH AS KRUGERRANDS?

KrugerRands and coins from other mints around the world are known as Sovereign Coins. Each country determines how their Sovereign Coins are regulated. Gold and Silver sovereign coins - such as Medallions - are physical bullion and act as a reliable hedge against inflation. 

As a business these coins are "nice to have" but from our perspective, remain the property of each sovereign nation. You only ever own the value of the coin, same as the paper money notes in your Wallet. 

Owing to the reality that KrugerRands are considered as legal tender in South Africa, these bullion products carry a number of regulations associated with their status, such as strict limits on how many can be taken out of the country by a South African citizen.

Our Medallions - Gold, Silver, or Platinum - fall into the same category as jewellery and collector coins, and as such do not carry the same restrictions. Medallions remain the only real physical bullion product that is geo-neutral and can be sold anywhere!

3. WHAT REGULATIONS APPLY TO THE PHYSICAL FORM OF GOLD, SILVER AND PLATINUM?

Regulations involving Gold and Platinum require that, by South African law, a private citizen may only hold finished articles such as KrugerRands, Medallions and small bullion bars (which still require serial numbers and tamper-resistant packaging)

Silver can be held in any form, from granules to minted or cast bars and medallions.

4. IS IT BEST TO ONLY INVEST IN ONE PRECIOUS METAL,  OR TO INVEST IN A COMBINATION?

There are two main aspects to consider; the value you want to purchase, and what the main reason is behind your interest in investing in physical bullion.

On lower values under R50k, we suggest that you look at only one of the bullion classes - Gold, Silver, or Platinum. Then, look to grow your bullion with regular purchases of the same class of bullion over time. This is known as “stacking”, and it is a prudent strategy to employ on lower value purchases. This includes purchases of smaller weights, such as: 

  • Silver 1 oz and 100g,
  • Gold 1/2-1/40z-1/10oz, or 
  • Platinum 1oz (only). 

For bullion investments that amount to the value of between R50k and R100k - it is recommended that you consider splitting your purchase over two classes (such as Gold and Silver OR Platinum and Silver, for example). This includes weights of: 

  • Silver - a spread of 1oz, 100g and 1 kg bars, 
  • Gold - 1oz and 1/2oz medallions, and 
  • Platinum - 1oz.

For any bullion investments that amount to more than R100k - it is wise to spread your investment over all three types of bullion. This includes: 

  • Silver - a spread of 1oz, 100g and 1 kg/ 2kg bars,
  • Gold - 1oz and 1/2oz medallions, and 
  • Platinum - 1oz.

Gold is rebuilding in value and ,based on normal conditions, we anticipate that it will continue to grow steadily over the next five to ten years - based on inflation and economic uncertainty both globally or locally in South Africa. 

Gold has proven to protect investors’ wealth during times of economic and political turbulence, over a sustainable and long-term period.

Silver, similar to Gold, acts as an effective hedge against inflation and economic uncertainty. However, the distinction between these two precious metals is that Silver is an industrial metal that, over the next decade and beyond, will continue to grow impressively in demand. At current market prices, Silver is viewed to be undervalued and as such, market consensus is that it should grow three to four times in value over this decade!

Platinum is developing into an investing metal, and over the while there has been a massive uptake of over 140% for it as an investment metal. Like Silver, it is an industrial metal and offers massive growth potential over the next decade and beyond. Based on the current value, market consensus is that the value of Platinum should double in value over this decade. 

5. IS IT BEST TO PURCHASE A NUMBER OF MEDALLIONS, OR TO GET A BAR?

This question would apply predominantly to Silver. In essence, it comes down to how much you’d like to spend and invest! 

If you’d prefer to start small and only commit to a monthly amount, we encourage you to opt for our Monthly Medallion Club (MMC) where you have the option to order 1 oz Medallions in Gold, Silver and/or Platinum. This is the best way to purchase grams of these precious metals. 

Once your Monthly Medallion Club subscription has accumulated to a 1oz Medallion, we will either deliver it to you (via our partnership with SkyNet Worldwide Express), or vault it in Fidelity’s high security vaulting solutions (MMC members enjoy free vaulting & insurance on bullion to the value of R1m). 

Additionally, you have the option of completing monthly purchases on smaller Silver bars, like the 100g and 500g bars, as a way of pursuing the “stacking approach” to growing your bullion wealth.

6. WHAT IS THE MONTHLY MEDALLION CLUB?

We created the Monthly Medallion Club (MMC) as a way of empowering our clients to buy actual physical grams of Gold, Silver and Platinum at a set, affordable cost each month. 

Your grams will be purchased on the day we receive your monthly payment, and securely stored until you have accumulated enough to manufacture a 1 ounce Medallion (remember, it is illegal to hold Gold and Platinum in an unfinished form without a beneficiation licence).

This allows you to stockpile your bullion without the need for a large initial capital outlay. MMC members also enjoy free vaulting and insurance for bullion up to the value of R1 million. 

7. ARE THE OUNCES QUOTED BY DCX BULLION TROY OUNCES?

A troy ounce is 31,1034g. Our 1-ounce Medallions are 31,151g. 

During the manufacturing process, there are always losses due to the stamping and polishing process. As such,  we ensure that we over-manufacture the weight of our products, to factor in these losses. Thus, guaranteeing our clients the final weight of 31,151g, which is slightly above a troy ounce.

8. WHERE DO I SELL MY BULLION IF I NEED TO CASH IT IN?

Great question! You can sell your physical bullion almost anywhere in the world! Always look for a reputable bullion exchange that will buy your bullion at the best prices.

We offer a buyback guarantee on all our bullion, with money in your bank account within 72hrs.

9. IF DCX BULLION BUYS BACK MEDALLIONS OR BARS, DO WE REIMBURSE YOU ON ANY MANUFACTURING PREMIUM THAT WAS PAID AS WELL?

All physical bullion exchanges will buy the precious metal back at Spot Price. In the instance of gold, for example, you may receive Spot plus 2-3% more. 

Remember, physical bullion is about moving your wealth out of FIAT based currencies (like the Rand) and into something that will protect it over the long-term. As such, with any long-term investment, the true growth potential of your bullion is developed over time. 

To illustrate this, it we look at the average annual gold price over a period of 5, 10 and 20 years growth in US$, we can see how it has appreciated in value over this long-term period: 

  • 5 years - 54.17%
  • 10 years - 6.88%
  • 20 years - 553,93%

Gold has climbed from an annual average of US $271.19 per ounce in 2001 to US $1798,80 per ounce in 2021! Therefore, investing in physical bullion focussed on protecting and building your wealth, specifically in the economic uncertainty we currently live in. 

Physical bullion will empower you to enhance the growth and value of your wealth as the Rand continues to depreciate and decline against the US$.

10. WHAT OTHER COSTS ARE INVOLVED IN DCX BULLION’S BUYBACK PROCESS? 

We charge no additional fees on buybacks of our products from our clients.

11. WHEN BUYING/SELLING THROUGH DCX BULLION, WHAT INFORMATION DOES THE RECEIVER OF REVENUE OBTAIN ABOUT ME?

We are a VAT registered and compliant company, and thus, we have to comply to all FICA requirements stipulated by SARS. We would therefore require your standard FICA information, such as your ID and Proof of Address.

DCX Bullion is committed to long-term sustainability, and remaining VAT compliant is in the best interest of our valued clients. Our partnership with Tax Consulting SA empowers us to ensure that we can quickly and effectively recognise and manage any tax implications relating to your bullion purchases. 

It is best to discuss this question on a per case basis, to see how we can best meet your expectations.

11. WHAT WOULD THE STORAGE FEE FOR APPROX. R50,000 WORTH OF BULLION AMOUNT TO?

For bulk purchases we offer clients Secured Insured Vaulting (SIV) from as little as R220 per month to a bullion weight of 6kg, fully covered to the retail value, to ensure that your physical bullion is properly protected. 

This offer is both in line with - and competitive to - commercial vaulting companies across the country. 

12. IF MY BULLION IS STORED WITH DCX BULLION, WHAT HAPPENS IN THE EVENT OF ME PASSING AWAY?

We implement a comprehensive vaulting contract with every client. In this contact, the client notes their next of kin, who will inherit the bullion that you have accumulated in the event of your death. 

DCX, in partnership with our trusted security partner, Fidelity - are the custodians of your bullion, but NEVER the owners. The bullion that we hold on your behalf (purely for enhanced security purposes) will always remain your property. 

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