10 best investments in South Africa for beginners
If you put your money in the right place, it is possible to turn R1000 into R10,000 fairly quickly.
When starting out, making high returns can be easy. However, as your wealth grows naturally your returns will begin to decline. (Since you’re starting out, let’s not worry about that for now.)
Are you ready to invest your money for the first time?
If yes you’ll be happy to know that there are plenty of options at your disposal. Just remember that investing can be a little dangerous. Therefore, you have to make sure that you’re going to be playing your cards right. The best way to do that is by choosing safer and more reliable investments. And never invest money you’re not willing to lose.
Within this guide, I’m going to cover the 10 best investments in South Africa for beginners, ranked by the best return on investment for the amount of money you have to invest.
01. Trading Cards [Few hundred bucks]
Do you want to buy something inexpensive and hold onto it for a little while? If so, you should think about buying and trading South African trading cards. There are plenty of options here.
However, Rugby trading cards tend to be the most valuable. If you’re able to get a few rare cards, there is a good chance that you’re going to make a lot of money on your investment. Or, you can try buying new packs and hold onto cards until their value soars higher. Either way, investing in trading cards is a good way to invest your money.
02. Buy Some Mandela Coins [Few hundred to a couple of thousand Rands]
Another way to invest your money is by buying Mandela coins. Over the years, these coins have grown significantly in value. In fact, they’re worth more today than ever before. Just remember that a few of these coins are more valuable than others. If you’re going to get into this type of investment, you need to make sure that you know as much as possible about these coins and their respective values.
The most commonly sought after Mandela coin is the R5 Mandela Gold Coin. When buying, make sure you buy minted coins that have been graded.
03. Silver Krugerrands [Couple of thousand rands]
Can’t afford gold krugerrands? If the answer is yes, you should consider buying silver Krugerrands. At around R250 per ounce they’re definitely cheaper, and they’re potentially going to make you a lot of money in the long run. Another good thing about this type of coin is the fact that it is much easier to access. These coins aren’t as rare.
Therefore, you shouldn’t have too much trouble finding some. Just remember to hold onto them for a long time. When buying precious metals it’s not exactly a quick flip investment. This will allow the price to increase and ensure you’re able to make money in the long run. See it as a retirement fund.
04. Antiques can offer high returns
[Couple of thousand Rands]
South Africa is an old country. And, it is full of ancient antiques. Remember that there are plenty of people who like buying antiques. They do so for monetary reasons and they do so to decorate their home. With that being said, there is definitely a market for antiques and you should use that to your advantage.
In order to be successful iin nvesting in antiques, you need to know what you’re doing. Learn as much as you can about the items in question before buying or selling. Otherwise, you might be selling an immensely valuable item for very little.
05. Buy stocks on the JSE
[Couple of thousand Rands]
Even though you live in South Africa it is still possible to buy stocks from other markets around the world. And, you should definitely consider doing just that. This will make it possible for you to benefit from the growth of companies from all around the world. However when starting out, buy stocks from the JSE. It’s a lot quicker and easier to get started.
Again, there are some risks when investing. You need to make sure that you choose companies that are healthy and capable of thriving for many years to come. To find those “golden nuggets,” you’ll need to DO YOUR RESEARCH!
RESEARCH TIP: When you buy a stock you are in a sense buying a very small part of a big company, so treat the process like you’re buying a small business.
Ask yourself; does the company have potential for future growth? Is the company making money? Am I paying too much compared to how much money the company is making? Those are just a few questions you should be asking yourself.
DO NOT BUY: If you’re buying a popular company while it’s doing well, avoid it! Stock prices will more than likely be over valued. Dig deep and find smaller companies that haven’t been found by big investors yet. Remember when literally EVERYONE was chatting about Bitcoin? That happened at the peak of of the bitcoin boom. If you bought in then (When it was worth around R280,000) your investment would be worth 1/3 today.
06. Ever thought of bonds?
[Couple of thousand Rands]
Do you have faith in the South African government? If so, you should think about buying government bonds. You’re going to receive a return by holding onto the bond until it reaches maturity. The risks are minimal. The only problem is the fact that it is going to take a very long time to get paid. Of course, there are many different types of bonds. Therefore, you should do your research and find out which one is best for your investment preferences.
[Couple of thousand Rands]
Finally, you should know that South Africans may be able to benefit from annuities. This is a great way to make a little money and the risks are very small. In this type of situation, you’re going to be paying a life insurance company.
In return, they’ll pay back the money over a period of time in much smaller increments. Annuities are very popular all around the world because they’re reliable and very safe. This is a great investment for beginners. In fact, this could very well be the best investment for a South African who has never invested their money.
08. Buy Gold Krugerrands [R15,000+]
If you’re interested in buying and holding onto valuable coins, you’ll definitely want to buy some gold Krugerrands. These gold coins are immensely valuable. The only problem here is that you’re going to be required to spend a lot to get started. In fact, these coins are valued at more than R18,000 for each. Be cautious and make sure you buy low and sell high for the best results.
Because Krugerrands are made of pure gold, they can’t lose much value
09. Buying Raw Materials Commodities [R15,000+]
South Africa is a unique place. There is always a chance that you’re going to be given the opportunity to buy a raw material. You might just get a good deal on it too. There are plenty of raw materials to invest in. Gold, silver, cotton, and diamonds are all very expensive.
If you’re able to buy some of these materials for a low price, you might be able to flip them for a big profit. Again, you need to understand the commodity in question to ensure that you’re going to be buying low and selling high.
10. Invest in some property [R50,000+]
There is a lot of property in the country of South Africa. Simultaneously, there are plenty of people and companies that need access to property. This is why you should think about investing in South African properties. This can be a great investment opportunity as long as you choose the right place.
For starters, you should definitely check out the Western Cape. In this area, you’re going to experience average annual returns of 9.3%.
Starting out investing can be difficult but done right can also be highly profitable. Please remember never to invest money that you need. If you do, your emotions will be involved which means you’ll be more likely to make bad investing decisions.
If I was starting out, before putting my money anywhere I would first invest in myself. Go to events, read books and get on some online courses.
Have you invested your money yet? If yes, let us know what you invested in and what your returns have been so far in the comments section below.