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Business Economy Finances

Flexible Gold Bond: Institutional investors can now invest in Krugerrand on each trading day

Flexible Gold Bond: Institutional investors can now invest in Krugerrand on each trading day

Krugerrand goldbars (Source: Rand Refinery)

Johannesburg, South Africa, 8 March 2018: Physical gold in the form of the well-known Krugerrand bullion coin, manufactured jointly by Rand Refinery and the South African Mint, is tradeable in Germany for the first time on the Stuttgart stock exchange and is of particular interest to institutional investors. These can invest in the „Krugerrand (1oz) Gold Bond“ and therefore take part in its performance. Additional advantages are the purchase of physical gold in combination with the stock exchange tradability with favourable spread as well as the simple and secure storage option in Germany.

The bearer bond guarantees the right to demand delivery of the Krugerrand gold coin, which is recognized as legal tender in South Africa. The pieces are kept safe by BayernLB in Nuremberg and larger quantities can be bought or sold flexibly by investors according to gold rate development.

Richard Collocott, Executive Head of Marketing at Rand Refinery: „The Krugerrand bond offers large investors a fixed issue price, with regard to the reference price of a Krugerrand gold coin, without additional management or annual fees over the entire 10-year term. Besides that, investors are entitled to delivery of the Krugerrand gold coins at any time.“

The Krugerrand bond is also used to stabilise and improve the portfolio and is often considered to be a „crisis currency“. The bond also opens up attractive income opportunities in the event of high demand for investment gold and consistent conveyance capacity.

Michael Eubel, Head of Precious Metal Trading Department at BayernLB: „The Krugerrand bond is, for example, an interesting product for institutions which are not allowed to purchase precious metals or raw materials for legal reasons, such as insurances or UCITS funds. At BayernLB we check and guarantee the authenticity and purity of the individual Krugerrand gold coins. In addition, we are responsible for the purchase, the storage in high security vaults and for the delivery processes.“

The issuer is Gesellschaft zur Verbriefung von Lieferansprüchen auf Edelmetalle mbH (G.V.L.E.). The bond can be bought via security order systems (identification number A2F6KP) and is provided with 100-percent cover at all times. The stocks are insured to a maximum volume of 250,000 one-ounce Krugerrand coins.

The base value of each Krugerrand bond corresponds to a Krugerrand gold coin with a purity of at least 916.66/1000, a weight of one ounce and a 10-year term. Delivery of gold ounces to a German address is possible at any time on favourable terms.

More information is available in the securities prospectus (legally binding) and at www.kruegerrand-anleihe.de (German).

Rand Refinery together with the South African Mint manufactures the bullion coin in South Africa. To date, Rand Refinery has processed nearly 50,000 tons of gold, which corresponds to about one-third of all the gold ever mined in the world. Rand Refinery was founded in Germiston, South Africa in 1920 by the Chamber of Mines, in order to process the raw gold that was being mined in the mines around Johannesburg and to market it throughout the world. The company processes almost all the gold mined in South Africa, as well as a considerable portion of the precious metal that is mined on the African continent. In addition to the Krugerrand, that world-famous gold coin, the company also sells gold bars weighing from one gram up to one kilogram. The most famous bars in Europe are the „elephant bars“, which are pure gold ingots with an elephant motif on the reverse side. Rand Refinery is a member of the London bullion market (London Bullion Market Association). In addition to gold trading in London, the company is also listed on the New York Commodities Exchange (COMEX), the Tokyo Commodities Exchange (TOCOM) and the Dubai Good Delivery Multi Commodities Centre (DMCC) with „Good Delivery Status“.

Rand Refinery
Richard Collocott
Refinery Road 1
1400 Germiston
Phone: + 27 (0)11 418 9000
Fax: + 27 (0)11 418 9231
E-Mail: gold@gold.co.za
Url: http://www.randrefinery.com

financial relations GmbH
Jörn Gleisner
Louisenstraße 97
61348 Bad Homburg
Phone: +49 (0) 6172/ 27159 – 0
Fax: +49 (0) 6172/ 27159 – 69
E-Mail: j.gleisner@financial-relations.de
Url: http://www.financial-relations.de

Business Economy Finances

Tax Court Kassel Lowers Hurdles for Write-Downs of Assets

Tax Court Kassel Lowers Hurdles for Write-Downs of Assets

Hess + Blank specialised tax consultancy and law firm

Frankfurt 18.03.2014 (HB18032014GBGT). On February 12, 2014, the Tax Court in Kassel, Germany, ruled that listed securities held in the current assets may be written down to their lower market prices on the balance sheet date, irrespective of the subsequent price development (11 K 1833/10).

Hess + Blank represented the plaintiff in this financial court proceeding. The plaintiff, a securities trading firm, had acquired options based on the German stock market index DAX. When the option prices fell, the plaintiff wrote their tax account values down to the market prices on the balance sheet date. The options were sold at higher market prices shortly after the balance sheet date. The German fiscal authorities, relying on administrative directives of the German Federal Ministry of Finance, claimed that write-offs were only admissible to the higher market prices at the time of sale.

The Court followed Hess + Blank“s line of argumentation and ruled that two 2011 decisions of the German Supreme Tax Court (BFH) regarding write-offs of non-current assets should be applied to write-offs on current assets. In these two 2011 decisions, the Supreme Tax Court had ruled in the context of non-current assets, that the market price on the balance sheet date was the only relevant criterion for a write-down and that any subsequent price developments were simply irrelevant (Sept. 21, 2011 – I R 89/10 und I R 7/11). By applying this concept to current assets, the Tax Court in Kassel closed a gap not previously covered by German case law.

Contrary to Draft Administrative Directive
The decision is distinctively newsworthy, because it directly contradicts the latest draft administrative directive on write-downs of the German Federal Ministry of Finance, issued only recently on January 17, 2014.

The decision is good news for commercial securities trading firms and proprietary trading groups in banks and insurance companies doing business in Germany. The decision is not final and binding yet, as the fiscal authorities may file an appeal and take the case to the German Supreme Tax Court (HB18032014GBGT).

About Hess + Blank
Hess + Blank is a tax and law firm based in Frankfurt, Germany. It frequently represents securities trading firms (from day traders to international trading groups) in their German tax, accounting and legal affairs. Bildquelle:kein externes Copyright

About Hess + Blank
Hess + Blank is a tax and law firm based in Frankfurt, Germany. It frequently represents securities trading firms (from day traders to international trading groups) in their German tax, accounting and legal affairs.

Hess + Blank Tax and Law Firm
Christian R. Dörre
Freiherr-vom-Stein-Str. 7
60323 Frankfurt
+49 69 174312

Business Economy Finances

Value Investing – Now available to all investors:the Warren-Buffett-method.

Value Investing - Now available to all investors:the Warren-Buffett-method.

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