When it comes to gold coins, the Krugerrand has a rich history and is still one of the best-selling gold bullion coins in the world. The name "Krugerrand" is a combination of Paul Kruger's last name and "rand", South Africa's currency.
The South African Krugerrand gold coin is the official gold coin of South Africa and is minted by the South African Mint. The Krugerrand was first minted in 1967 with the main objective of supporting South African gold on the market. It is a legal means of payment in South Africa, although it was not originally intended as a real currency.
Who was Paul Kruger?
Paul Kruger was the president of the South African Republic from 1883 to 1900. During the Second Boer War, he gained fame for leading the Boers in their fight against the British. A national icon, it’s no surprise he has given his name to the Krugerrand coin.
History of Gold Krugerrands
During the 1960s, South African gold mines produced 70% of the world's gold supply. But at that time, owning gold bars and ingots was illegal as the global gold standard was being phased out.
The South African government designed the Krugerrand gold coin to take advantage of this new market and make gold ownership legal. It was first issued in 1967 by the South African mint and was the earliest modern coin to contain over one troy ounce of 22-karat gold.
Each coin was sold at 5% above the spot price to attract collectors and investors. This means that its gold purity level is 91.67%, similar to the American Eagle, which was created later.
The remaining 8.13% of the coin is made of copper to achieve Krugerrand's distinctive orange-tinted color. This copper component also makes the coin more durable and resistant to scratches. It was especially important because it was the world's first legal tender bullion coin for domestic and international use.
Why invest in Gold Krugerrands?
- Legal Tender Value: The Krugerrand gold coin was the first of its kind and is a legal tender coin. This special coin has no set value. So, the worth is determined solely by its market value in gold. This means you can exchange a gold Krugerrand for the equivalent value of one ounce of gold in cash.
- Durability: The Krugerrand gold coins contain 91.67% gold and is reinforced with copper, making it a popular choice among collectors and investors due to its durability and orange sheen.
- Historical Value: The coin's reputation and history have contributed to its high demand, making it one of the world's most widely collected and traded bullion coin. So, purchasing Krugerrands can be a wise investment decision due to their intrinsic value, aesthetic appeal, and historical significance.
What’s the value of a Gold Krugerrand?
The value of Krugerrand gold coins, much like other gold coins, is mainly determined by the current market value of gold because of the large quantity of precious metal it contains. Other factors then play a role in their valuation such as their rarity, condition, or mint location.
This is why it is useful to check the day’s gold price to understand the current value of your Krugerrand coins and know if it is the right time for you to sell them or buy more!
How to buy Gold Krugerrands
You can buy Krugerrand Gold coins using GOLD AVENUE’s secure website. Currently, we have the following Krugerrand coins in stock:
Simply create an account in less than a minute and pay by free wire transfer, credit card (3% surcharge), or GOLD AVENUE Pay. If you choose to store with us, we offer free storage up to £8,500 in our secure vaults in Switzerland. Our vaults are insured against theft, loss, or damage, and you can resell your stored coins back to us instantly, at spot price, and with zero commission.
Gold Krugerrands vs. other Gold Coins
The Krugerrand gold coins stand out for their long history, their 22-karat purity, and their iconic springbok antelope design. Unlike other gold coins, 1 oz Krugerrands contain exactly one ounce of pure gold but weigh slightly more due to an alloy of copper for durability. This makes them sturdier and less prone to damage than other coins.
On the other hand, other gold coins, like the Canadian Maple Leaf and American Eagle, while offering 24-karat purity, may be more prone to scratches and damage, as their higher gold purity makes them softer and more malleable.
While the Maple Leaf is renowned for its intricate design and micro-engraved security features, the American Eagle is celebrated for its historic design inspired by Augustus Saint-Gaudens' double eagle. If some might consider the Krugerrand’s design a bit simpler than other legal tenders, it comes charged with a long and deep history, both national and numismatic.
In essence, the choice between the gold Krugerrand and other gold coins boils down to one's preference. The Krugerrand might be your pick if you favor durability and a bit of history. But, if maximum gold content and intricate designs are what you seek, you may lean towards the Canadian Maple Leaf or American Eagle.
At GOLD AVENUE, you can explore other coins from well-known mints worldwide, including the: