South Africans who bought a Krugerrand in 1994 can look back on a solid hedge against currency collapse and political turbulence. Then priced at around R1 365, a one-ounce coin today fetches roughly R44 400, tracking global bullion gains and the rand’s long decline. That translates to an annualised return of about 11.6% over 31 years. For savers fearing inflation and instability, it proved its worth.

Bank deposits, long the default option, fail to inspire. A saver rolling R1 365 through 12-month fixed deposits at an average 8% annual rate would now hold about R14 500. Push the rate to 9% and the total is still just under R20 000. Safe and predictable, yes, but barely ahead of rising prices and miles from the wealth created elsewhere.

By contrast, the same R1 365 put into Shoprite in the mid-1990s, when shares traded near 50 cents, would now be worth about R682 500. Invested in Naspers, then below R20, it would stand at roughly R136 500 today. A stake in Richemont, which listed in 1995 at around R4.50, would have grown to about R84 630. Against those figures, the Krugerrand’s R44 400 looks modest.

The compounding effect is extraordinary. Shoprite delivered a 500-fold return, compounding at more than 20% a year. Naspers still turned into a hundredfold gainer even after its corporate reshuffling, while Richemont multiplied wealth over sixty-fold. Each dramatically outstripped the protection gold and cash provided.

The lesson is not that gold or deposits failed. Both preserved value in different ways. Yet the cost of standing still with Krugerrands or bank accounts was immense. Equity in the right South African businesses turned rand-hedge caution into life-changing wealth.