How to stop your rand savings from becoming junk
The Rand has lost over 40% of its value to the US dollar since this time last year and is down 60% to the US dollar over the last decade.
Globally, it has been the worst-performing currency of the 12 months. If you factor in the inflation rate of South Africa, relative to the USA over the last 10-years, the picture gets even worse with 90% of the rands ‘real’ value lost to the US dollar.
To make matters worse, all 3 major credit rating agencies recently cut South Africa’s credit rating. These agencies now deem South African debt to be junk status, with Fitch having the most pessimistic outlook with a rating two notches below junk status. Collectively these agencies estimate that South Africa’s debt burden will reach about 91% of GDP by 2023, up from 69% today.
At Revix, we believe South Africans should be protecting their wealth by holding hard currencies, like the U.S. dollar and alternative assets including gold and cryptocurrencies. In response to the rapid depreciation of the rand Revix, backed by JSE listed Sabvest, has listed USD Coin — a dollar-backed crypto asset.
Why invest in USD Coin?
Every central bank around the world has expanded their balance sheets and issued unprecedented sums of money. What we’re witnessing is a debasement of global currency values like we’ve never seen before. People are seeking safe harbours for their hard earned money in these turbulent times and are turning to stablecoins like USD Coin.
The U.S. dollar is the world’s most transacted currency and generally appreciates relative to other currencies when global risk levels increase.
USD Coin, or USDC, is a crypto asset with a stable price — otherwise known as a stablecoin — which is backed 1-to-1 by U.S. dollars held in reserve by regulated financial institutions. Every token can be redeemed for one dollar — providing a dollar-linked stable investment.
These are uncertain times. The coronavirus pandemic is far from over, jobless claims have soared and now South Africa will have higher borrowing costs thanks to the rating downgrades.
At Revix, our mission is to provide a ladder of opportunity for wealth creation and in times such as these, wealth preservation. We do this by making it possible to invest in alternative assets like USDC, a U.S. Dollar backed crypto asset, PAXG, a gold-backed digital token, Bitcoin and a variety of diversified ready-made cryptocurrency Bundles for as little as R500.
At Revix, we’re driven to empower everyday people to become their own wealth managers. Cryptocurrencies have been our first investable category. We offer Bitcoin, a regulated gold tokenised-commodity called Paxos Gold, and 3 ready-made crypto Bundles. These Bundles are like the S&P500 for crypto, and offer passive diversified exposure to the crypto asset class. Investing is as easy as signing up, choosing an asset, and then watching your portfolio grow.
We have some exciting new products on their way. Soon you’ll be able to invest in emerging themes, sectors and asset classes in an effortless way. Sign-up to learn more.
This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose and before investing, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary.