Investing in gold is like buying yourself a life saving flotation aide when all else around you is sinking. And this even though you thought you were standing on solid Mother Earth.

Gold has always had a particular allure for South African investors. Many fortunes have been made over the years mainly by the owners of gold mines...

But this is changing and fast. South Africa's status as the premier deposit of the platinum group metals in the world, and with the majority of gold reserves lying underground the feet of the people living there, is undisputed. It is partly the reason that the currency of South Africa, the rand, is as strong as it is against the dollar, currently trading at around 6 Rands to the Dollar. South Africa can fit inside the state of Texas with plenty of room to spare...

And, if one considers that in the early 1970's the entire gold production, in dollars, was about the same amount, in dollars, of eggs consumed by Americans, the perspective of the relative sizes of the countries is somewhat re-adjusted. South Africa, despite having a population of 44 million, has something around 2 million registered tax payers...

Why then the currency strength of this small country against the mighty greenback?

The answer is relatively simple. The mighty greenback is not so mighty any more. Gold, as a currency, is far, far more valuable than the dollar will ever be.

In making this statement, you might argue that the price of gold determines it's relative worth. I am no economist, but one thing is for certain. ANYTHING under the sun is only worth what someone is prepared to pay for it.

So why gold? Why not diamonds? Why not Platinum? Or silver? Or Tanzanite? Tanzanite is beautiful, 1000 times rarer than diamonds, and one tenth of the cost! Why?

Supply and demand - and the fact that I happen to think that self interest vested in governments across the world dictates that the reserves of gold held in their vaults is a pretty sound indication of THEIR valuation of this 'currency'.

A dollar bill, a South African rand note, a Pound coin is nothing more than paper, paper and some nickel. No more no less. When one states that a dollar is not worth the paper it is printed on - the statement is absolutely true. It is worth precisely what someone else thinks it's worth!

The trouble with perception is that not everyone's perceptions are the same. So whilst Americans may think that their dollars are worth real money, South Africans might not agree. You cannot go and cash in dollars at Fort Knox for the equivalent amount in gold. Same with Rands. What can you really cash these notes in for?

And this is the rub. This is the attraction of owning gold and especially right now... It's truly universal and independent of any currency...