Alan Demby, founder of the world’s only gold coin retail chain.

We believe that 15% of every investment portfolio should comprise gold coins

Bullet Bio

  • Born: Manchester, England in 1955
  • Served as lieutenant in the South African army
  • Owner of The South African Gold Coin Exchange since 1992
  • Founder of Scoin Shop, the world’s only gold coin retail chain
  • Finalist of the World Entrepreneur awards competition, organised by Ernst & Young in 2008

In 1980 Alan rented his first offices and started coin dealing on a full time basis under the company name of Gold Club. Since then his business has been on the up. In 1992, he bought The South African Gold Coin Exchange and went on to open the first Scoin Shop seven years later. To date, there are 25 Scoin Shops throughout the UK and South Africa that turnover approximately £60m per year.

How did you first get involved with dealing in gold coins?

I was called up to the army for two years and during my service a friend suggested that we deal in Kruger Rands. I’d never seen one before but nevertheless we put an advertisement in a newspaper, did a deal and bought a few coins. At the time (1977) I was based in Pretoria and the instruction came from my friend to go to the gold exchange and sell the coins we had bought. It all started from there.

How has your business evolved over the years?

In the army I learnt about buying and selling coins and met some coin dealers. So when I finished training I decided to go into it full time. I dealt via the newspapers and two years later started the Gold Club. It was just a little one man show but it slowly built up and then in 1989 I bought a company called the Gold Investment Corporation from SAGE Holdings. This company was involved with selling Krugerrands on a credit system, so it was a logical move for us as we had already made our coin sets available to purchase on clients’ credit cards. In 1992 we went on to buy The South African Gold Coin Exchange which is the brand used today.

You went on to set up Scoin Shops – tell us more.

In 1999 we relocated from the centre of Johannesburg to Sandton. Here there is a huge shopping centre called Sandton City where we opened our first Scoin Shop to try and attract the tourist market. This was successful and gradually more locals also became interested. Today we have around 50 stores throughout the country selling bullion and collectable coins.

What has led to the success of the Scoin Shops?

I think Scoin Shops have been successful because we democratise gold buying for the man on the street and pick themed coins that attract customers. Our Mandela medallions for example have sold very well.

You now have Scoin Shops in the UK. Why did you choose to come here and what challenges have you faced?

The conventional wisdom for South African companies wanting to expand is to come to the UK. The time difference isn’t an issue, it’s a simple flight away and of course there is no language barrier. We have three stores so far and plan to develop further. It’s tough to get established here because starting costs are much higher. However we have done some good deals with the British Royal Mint, we’ve got the rights to promote and market the Manchester United medallions which have been very successful and were involved with the Kate and William coins.

How did you come to be affiliated with the Nelson Mandela foundation?

From travelling to many different coin shows around the world I discovered that the mint of Norway had assembled a Nobel Peace Prize Laureate program. They approached the institute around 10 years ago and arranged to make a medallion of each winner of the Nobel peace prize. Royalties from the sale of these coins go to the Nobel Institute and to the winner’s foundation. Through our involvement with the mint of Norway millions of rands have gone to the Nelson Mandela Foundation, which is a fantastic cause.

Source: www.thesouthafrican.com
By on 23 January, 2012