A South African rare coin collector who was a client of ours has placed up the most rare South African coin collection in South Africa up for sale for R40 million rand (£ 2.2 million US $3.7 million). This has been done through one of the leading coin auction companies in London. The coin collection is expected to actually fetch even more than the reserve price of R40 million! He has made a very significant profit from the coins that he has assembled into his collection, and all of the profits that he makes are tax free as with the sale of all South African rare coins. What makes this all the more extraordinary is that the sale is occurring during recovering international markets that are not at the height of their buoyancy. A very good reason to have rare coins as a significant part of your investment portfolio.

In 1996 S A COIN Corporation dramatically changed the entire landscape of South African rare coins. The market architecture that was introduced to South Africa took all South African rare coins swiftly and dramatically into a state of the art market of the highest parallels launching all South African rare coins into the 21st century. In 1995 S A COIN researched the world rare coin market specifically focusing on all of the underlining mechanisms that made the US rare coin market the most profitable and liquid rare coin market in the world. The total value of the US rare coin market is around US $10 billion. We wondered aside from the United States having the largest GDP output in the world why was their rare coin market was so powerful and dynamic. The answer as with most things was surprisingly simple. It was due to the certification of almost all US rare coins by PCGS, NGC and ANACS.

Once we made this discovery we decided that we would endeavour to have all of South Africa's rare coins graded through NGC. We chose NGC as South Africa's preferred grader due to the fact that at that time PCGS and ANACS were primarily focused on United States rare coins. But most importantly the population reports that are very synthesis of the success of rare coin certification were only produced by NGC at the time for world rare coins. Today PCGS and also ANACS compile population reports for world coins too. These population reports are records of each and every single coin that they grade. What this means is that you are able to work out the relative rarity of any coins that you are looking to purchase merely by looking at how many have been graded.

There have been three billionaires that have made their fortunes in the world from US rare coins and no matter how smart the individuals that have entered the US rare coin market have been. None of them has ever invented a more powerful catalyst to make rare coins grow than the placement of the coins into certified holders by internationally recognised grading companies. As soon as any country places its rare coins into certified holders the market then continues to grow at a staggering pace unabated. The massive growth of coins once they are certified is simply due to the consumer having a level playing field whenever they do any purchases of coins.

When S A COIN introduced the certification of South African rare coins by NGC in 1996. This was vehemently opposed by all of the members of SAAND (South African Association of Numismatic Dealers). The primary reason that they stood against the certification of coins through NGC was that this disallowed them to control the prices of South African rare coins. When you are a coin dealer and you are selling an uncertified rare coin the dealer tells the client what the grade of the coin is and what the price of the coin is based on his observations. Dealers at that time had the habit of grading coins that they were buying in from the public at low prices by decreasing the grade of a coin and by selling the coins at higher prices than they were worth by increasing the grade of the coin when selling. When a dealer is grading the very coin that he is buying or selling this is a conflict of interest. The certification of coins ended all of that. Whether you as a client were selling or buying a coin the certified coin was the grade stated on the capsule. This allowed clients to check the prices of all of the coins that they were buying and selling. It also more importantly allowed all clients to sell rare coins wherever they chose to do so without having to worry about proving what the grade was. The grade was on the capsule.

It took SAAND (South African Association of Numismatic Dealers) about ten years to catch up to S A COIN and start to grade their inventories through NGC. Today there are thousands of coin dealers in South Africa and they for the most part have all of the coins that they buy and sell graded by PCGS, NGC or ANACS. This has led to all of the dealers in South Africa being more successful than at any other time in their entire histories. They soon began to see that coin certification rather than being a threat to the livelihoods of South African rare coin dealers actually enhanced the market more than ever. As we said throughout the world today there is simply no more powerful catalyst for the growth of South African rare coins or rare coins in general than the certification of rare coins. It is by far the most powerful market force that contributes to the overall market. The certification of coins makes them as liquid as stocks and also allows the most valuable information i.e. how rare a coin is to be available to everyone around the world. Just as a stock market investor can check on all the statistics on stocks. In essence coin certification creates a global coin stock market for all of the coins that are graded. Furthermore as the market of graded coins gets larger and larger the pressure on the rare coins with the lowest population reports cannot be overestimated. The certification of rare coins has made them one of the best performing asset classes that you can buy in the world today.


The most important benefit to South African rare coins from internationally recognised third party certification is that it leads to the global dollarization of our coins. This cannot be done if you buy SANGS (South African Numismatic Grading System) coins that are not internationally recognised and that have too low grading standards for them to be dollarized. When international coin dealers can see and monitor South African rare coins through their population reports and the prices that they have been sold in South Africa. They are then quite prepared to offer the same coins for sale overseas at the equivalent prices that they have been sold for in South Africa. And in some cases for even higher prices.

In 1996 S A COIN predicted that the rare ZAR coins that we were selling for R150 000 would dollarize and sell for US $150 000 in the future. This is matter of public record. Today 18 years later we have seen that all of the South African rare coins that we were selling at that time have dollarized. They have not just dollarized recently this occurred about 7 years after the introduction of NGC grading to all of our South African rare coins.

In 2005 S A COIN began to market the rare R5 Mandela coins for R735. When this occurred all of the members of SAAND (South African Numismatic Dealers) vehemently opposed the sale of these coins. They said that they were only worth their face value of R5 and that it would take 50 years for these coins to become rare. Today there are over 300 000 certified R5 Mandela coins and they constitute 96.4% of the total South African rare coin market. They are also globally recognised as the fastest appreciating rare coins in all history. We have projected in the past and we are projecting at this time that there will be a time when all of the rare R5 Mandela coins dollarize for equivalent value overseas. The fact that the rare R5 Mandela coins are not fully dollarized is the greatest market opportunity for all investors in these coins. What we are saying is that rare R5 Mandela coins that you buy now for R150 000 you will be able to market in the future overseas for US $150 000.

Almost all of the other South African rare coins are fully dollarized. These are the last of the South African rare coins that are to be dollarized and when this occurs the profits and acceleration of these coins will outstrip all of our other rare coins internationally. This is simply because Mandela is so marketable. When a coin buyer is going through an international coin catalogue unless he is already a collector of such material he will not recognize Paul Kruger or Kaiser Wilhelm II of Germany. But everyone around the world will recognize Mandela and this factor alone will provide the Mandela rare coins with higher selection rates. People like to buy what they know.

It is important to note that all of the coins that were assembled by the rare coin collector that is selling his coins for R40 million are all currency coins. This means that they are coins that could at the time of their minting be used as money to pay for things. If you have a coin collection it is only the rare currency coins that will over time reach very high prices of sale. All coins that are not currency coins will always gravitate to their metal values over years. Non currency coins cannot ever become rare coins.

There are only 6 Mandela currency coins that have ever been made. They are the R5 Mandela coins of 1994, 2000 and also 2008. All of the other Mandela coins that you can buy are not currency coins and therefore not rare Mandela coins. All you as an investor or collector need to do is to have one example of the highest grade coin that you can acquire to have a complete set of all the Mandela coins. We are predicting that the rare R5 Mandela coins will dollarize in all global markets and lead to the largest windfall that South Africans have ever seen in the South African rare coin market as more and more of these coins are exported out of the country to overseas investors and collectors.


Let us first tackle the unrealistic expectation that the rare Mandela R5 coins would double in value when Mandela died. It has never happened in numismatic history before or with the death of any great person like Picasso. What does happen when a person dies is that there in not any new direct material that comes through to the marketplace. Picasso produced around 100 new art creations a year. When he died it was the lack of new material to enter the marketplace that led to all of his paintings becoming more and more expensive. When Picasso was alive although his art works were expensive they were still able to be purchased by people that were not very rich. Today his best art works sell for in excess of US $150 million and only the super-rich can afford them. In the case of the Mandela R5 coins our government will never ever produce another currency coin for Nelson Mandela. He had three currency coins made for him something that has never ever occurred for any statesman in the world. Those three coins are all that there is. We have a global population of 7.3 billion people and growing. With no new currency Mandela coins being made those that are left behind will just become rarer and more sought after as time passes.

To those that think that the Mandela R5 coin market is over with his death. That is a great misconception. When President Paul Kruger died all of the rare Kruger coins did not double in value after his death. But they had ceased to be produced and just became more and rare as time passed. The most valuable Kruger coin is valued today at R50 million rand. There is no way to deconstruct the Mandela R5 market. There are over 300 000 of these coins graded and they constitute more than 96.4% of the total South African rare coin market.

These coins as with all other coins will ebb and flow with the conditions of the marketplace but they will continue to become rarer as time passes and as more and more investors and collectors enter the market. With their prices just going higher and higher. This all the while with the increasing numbers of Mandela coins getting graded placing greater and greater pressure on the rarest examples of these coins. Just in the 2008 MS-66 Mandela R5 coins the numbers of these coins has leapt from 208 000 of these coins graded to 213 000 graded. An almost 2.5% increase in the number of coins from January 2014 to May 2014. These are the most numerously graded of all of the R5 Mandela coins. They provide the foundation to the new South African rare coin market. A counterweight and to all of the other rarer R5 Mandela coins. The more of these coins that are submitted for grading the greater pressure on all of the low population R5 Mandela coins. You can expect the R5 Mandela coins to in the near future fully dollarize and to show even higher growth rates than they have in the past.

South Africa is experiencing tough economic conditions at the moment but these will pass as they always do. There has never ever been a better time to purchase rare R5 Mandela coins. Any quality asset that you buy during depressed times will show you highly accelerated levels of appreciation when there is a recovery which is just around the corner for the South African economy. The global economy is getting stronger and stronger especially under the brilliant tenure of Janet Yellen who will lead the world to the highest growth outputs ever in history. South Africa will be pulled along as the economies of the United States, China and Great Britain and other leading countries get stronger and stronger.