Investment in gold is a wise way to diversify your portfolio during any economic climate and makes perfect sense during the volatile financial times we are all experiencing. Arguable gold price often moves independently of established investment vehicles and thus offers a great hedge against inflation. One of the more popular ways to hold gold is via gold bullion coins such as Golden Eagle Coins or Canadian Gold Coins but don’t forget about the granddaddy of them all; Krugerrand Gold Coins.
The South African Mint Company minted the world’s first gold bullion coin, the Krugerrand, back in 1967. Originally the coin was intended to be used as currency hence why it was produced using a more durable gold alloy, unlike most other gold bullion coins. Krugerrand Gold Coins are minted from a gold alloy that is 91.67% or 22 Karats. The remaining weight of the coin (8.33%) is copper which lends the coin a more orange appearance. The kurgerrand is so named as the obverse of the coin bears the face of four-term statesman Paul Kruger, former president of the old South African Republic.
The Krugerrand up to recent times has had a very troubled history due in main to the global economic sanctions in force against the South African government for its apartheid policies. This made the coin an illegal import in many countries but did not seem to dent the popularity of the coin either as an investment or part of a larger coin collection. In fact the Krugerrand led to many other gold producing countries minting their own gold coins such as the American Gold Eagle, the Canadian Gold Maple Leaf, and the British Britannia Coin to name a few.
As with other silver and gold bullion coins the Krugerrand is a very liquid investment. Liquidity is of great benefit for investors as it basically means how quickly you can convert your asset into cash. You can go to many coins dealers or websites and quickly sell your bullion or numismatic coins into cash. This is as compared to other forms of investment such as property and real estate which are not easily converted into cash and therefore less liquid.
Gold bullion coins are really the first investment to consider as a great addition to your portfolio. It is, after all, the ancient metal of kings globally renowned for its long history as a store of value and safe haven investment. Along with the ever popular and more obvious gold bullion coins available don’t forget to consider Krugerrand Gold Coins.
About Gold Krugerrand coins.
The Gold Krugerrand coin is a South African gold coin, first minted in 1967 to help market South African gold. It is produced by the South African Mint Company. There have been an estimated over 54 million Krugerrand gold coins sold worldwide since 1967.
Unlike other gold coins, the Gold Krugerrand coin has no actual face value apart from its precious metal content.
Design of Gold Krugerrand coins.
1-oz gold Krugerrand has serrated edges. On the front of the coin is a profile of Paul Kruger, an early president of the Republic of South Africa. The Afrikaans words Suid Afrika appear, along with the English South Africa. The back of a gold bullion Krugerrand coin features a male springbok. This medium-sized brown and white gazelle has long been regarded as a national symbol of South Africa. There is also a date stamped in two sections on either side of the springbok image.
1-oz Krugerrand is 1.3 inches in diameter and 0.11 inches thick. Gold Krugerrand coin has a gold fineness equal 0.9167. The coin is actually 1.09 troy oz. because it’s 11 parts 22-karat gold alloy and 1 part copper added to make the coin more resistant to damage.
In 1980, three smaller sizes of gold bullion Krugerrand coins were issued, with weights 1/2 oz, 1/4 oz and 1/10 oz.
1-oz gold Krugerrand coins remains today one of the most popular means of private ownership of gold along with American Eagle coins and Silver Maple Leaf coins.