Country of Origin: South Africa
Weight: Approximately 1.09 troy ounces (33.93 grams)
Gold Content: 1 troy ounce (31.1035 grams)
Purity: 22 karats
Diameter: 32.77 mm
Thickness: 2.84 mm
The Krugerrand was first minted in 1967, its name combines ‘Kruger’ (after Paul Kruger and ‘rand’, the South African currency). The obverse of the coin displays a figure of Paul Kruger, while the reverse showcases a springbok antelope, the national animal of South Africa.
Fractional Gold Krugerrand’s
The standard and most popular Krugerrand is the one ounce gold coin. In 1980 fractional Krugerrand’s (1/2 oz, 1/4 oz, and 1/10 oz) were introduced. Fractional Krugerrand’s were introduced to make gold more accessible to a broader market. Especially those investors who need a more affordable entry point into gold ownership. Fractional gold Krugerrand’s come with a slightly higher premium over the spot price of gold when compared to one-ounce coins. This is because of the increased costs associated with minting smaller coins and the higher demand from investors looking for lower entry points into gold ownership.
One Tenth Gold Krugerrand
- Weight: 3.39 g
- Diameter: 16.55 mm
- Thickness: 1.35 mm
- Fineness: 91.67%
One Quarter Gold Krugerrand
- Weight: 8.48 g
- Diameter: 22.06 mm
- Thickness: 1.89 mm
- Fineness: 91.67%
One Half Gold Krugerrand
- Weight: 16.97 g
- Diameter: 27.07 mm
- Thickness: 2.22mm
- Fineness: 91.67%
One Ounce Gold Krugerrand
- Weight: 33.93 g
- Diameter: 32.77 mm
- Thickness: 2.84 mm
- Fineness: 91.67%
The History of the Gold Krugerrand
The Krugerrand was first minted in 1967 by the Rand Refinery and the South African Mint. The goal was to help market South African gold to international buyers. At that time, South Africa was a leading producer of gold worldwide. The Krugerrand quickly became popular among gold investors worldwide. By 1980, it accounted for over 90% of the gold coin market globally. The coin’s success led other nations to introduce their own gold bullion coins, such as the Canadian Gold Maple Leaf and the American Gold Eagle.
In the 1970s and 1980s, South Africa faced international condemnation and sanctions due to its apartheid policies. Many countries prohibited the import of Krugerrand’s as part of these sanctions. This significantly affected the coin’s international market share. After the apartheid era ended in the early 1990s, sanctions were lifted, and Krugerrand’s regained their standing in the global market, although they now faced competition from other gold coins. Today, the Gold Krugerrand remains one of the world’s most recognized and traded gold bullion coins.
The Krugerrand was first minted in 1967 by the South African Mint.
The coin’s success inspired other nations to mint their own gold bullion coins, like the Canadian Gold Maple Leaf and the American Gold Eagle.
It was introduced to market South African gold internationally.
By 1980, the Krugerrand accounted for over 90% of the global gold coin market.
Today, the Krugerrand remains one of the most recognized and traded gold bullion coins worldwide.
Gold is money. Everything else is credit.
– J.P. Morgan
The Gold Krugerrand has Legal Tender Status
The gold Krugerrand has legal tender status in South Africa. “Legal tender” refers to money or coins that are officially recognized by a government as a legitimate means of payment. In the case of the Krugerrand, even though it’s essentially a gold bullion coin, it is recognized by the South African government as a legal form of currency. Krugerrand’s were designed to derive their value exclusively from the price of gold at the time they are traded. The Rand value of a Krugerrand is not fixed, its value is determined by how much gold is currently worth on the open market and also the prevailing R/$ exchange rate.
When someone wants to buy or sell a Krugerrand, they would look up the current price of gold. The coin’s value is essentially its weight in gold multiplied by the current price per unit weight (usually per troy ounce) of gold. Since the Krugerrand’s value is directly tied to the price of gold, any fluctuations in the gold market will influence the coin’s value. For instance, if global gold prices rise, the value of a Krugerrand will also rise, and vice versa. Legal tender gold Krugerrand’s do not attract VAT for South African investors which makes them a better investment than any of our other one ounce gold bullion coins.
The gold Krugerrand is recognized as legal tender in South Africa.
“Legal tender” is money or coins that a government officially accepts as a valid form of payment.
The coin’s value isn’t static; it’s determined by the current gold market price and the prevailing Rand to Dollar exchange rate.
A rise in global gold prices will increase the value of the Krugerrand and vice versa.
In South Africa, legal tender gold Krugerrand’s are exempt from VAT, making them a more advantageous investment compared to other one-ounce gold bullion coins.
When paper money systems begin to crack at the seams, the run to gold could be explosive.
– Harry Browne
Proof Krugerrand’s Vs Bullion Krugerrand’s
Bullion Krugerrand’s are primarily intended for gold investors. Their value is mostly derived only from their gold content while Proof Krugerrand’s also have intrinsic value derived from their gold they also have value associate with their finish and rarity. Proof Krugerrand’s are are minted in limited quantities and have a much more polished finish than their bullion counterparts.The choice between Proof and Bullion Krugerrand’s depends on your objectives. If the primary goal is gold investment and liquidity, bullion coins might be more suitable. On the other hand, if you interested in numismatics and do your research, proof versions can be an good option.
Understanding the Investment Potential of Gold Krugerrand’s
Historically, the Krugerrand has been a popular choice for those looking to invest in physical gold, largely due to its international recognition and the trust associated with it. Physical gold, including Krugerrand’s, is often seen as a hedge against economic uncertainty, inflation, and currency fluctuations. The value of the Krugerrand tracks international gold prices.
Diversification and Hedging
- Investors often include gold in their portfolios to diversify against risks associated with stocks, bonds, and other financial instruments.
- The Krugerrand, being a tangible asset, offers an advantage over paper assets, which may be subject to default or other financial system risks.
- Historically, gold has maintained its purchasing power, making coins like the Krugerrand a potential hedge against inflation.