☆ South African Krugerrand Gold Coins.

The Krugerrand is 32.6 millimeters in diameter and 2.74 millimeter in thickness. The Krugerrand’s real total weight is 1.0909 troy ounces or 33.93 grams. It actually is minted from gold alloy which is 91.67% pure gold or 22 karats. The coin features one troy ounce or 31.104 grams of gold. The remaining 8.3% from the coin’s makeup is copper. This alloy is known historically as crown gold which has long been employed for English gold sovereigns. This gives the Krugerrand a much more orange look than silver alloy gold coins. Copper alloy coins are not as hard and extra durable, so they tend to resist scratches and dings.

The kruggerand in the investment gold market.

The Krugerrand is the first one ounce gold coin. Before, for an ounce of gold, you had to buy bullion, which is unaffordable for small investors.

In 1975, the United States government repealed the Gold Reserve Act, and Americans could again freely own investment gold. As a result, purchases of Krugerrands have skyrocketed. The United States was the largest market for Krugerrands, accounting for 50% of all sales.

• From 1975 to 1984, 22 million Krugerrands were imported into the United States.
• In 1984, the United States Congress banned the importation of Krugerrands in protest against the apartheid policy of the South African government. Krugerrands already in the country could be bought or exchanged, but new coins could not be afforded. This situation lasted until 1994, when South Africa held its first democratic elections.
• In the 1980s, many other Western countries imposed similar import bans on the Krugerrand. As a result of these economic sanctions, the sale of Krugerrands decreased.
• Due to the immense popularity of the Krugerrand, other gold-producing countries decided to produce their own gold coins in the late 1970s, such as the Canadian Maple Leaf, Australian Nugget, Chinese Panda, American Eagle, and Britannia. in the United Kingdom.

Krugerrand Coins are the gold bullion coins that have been minted the most, the have been the most sold coins in history, more than 42 million krugerrands have been minted since their debut in 1967. They have been minted more than all the other gold coins put together. The Majority of krugerrands were minted in the 70’s and 80’s at that time the demand for these coins was really high because investors thought that it could protect them against inflation. In 1974 Americans regained their right to buy and sell gold bullion, at that moment Krugerrand Gold Coins became extremely popular and millions were instantly sold.

In 1985 the South African Congress prohibited South Africa to sell Krugerrand Coins to the United States, with the coins that had already been imported in the U.S the market mantained active, thousands were bought and sold daily. In 1994 the South African Congress lifted the ban and krugerrands were back in the U.S market.

You can now buy Krugerrands at will, they come in four sizes, the very famous 1-ounce krugerrand, 1/2-ounce, 1/4-ounce, and 1/10-ounce, without a doubt the 1-ounce krugerrand is the most popular, the easiest to buy, it is also the easiest to sell, and it can be found in large quantities. They all have the same design, so they all look the same, the only difference is weight and price.

Types of Krugerrand in the market.

The quoted Krugerrand is one ounce, but there are smaller coins (1/2, 1/4 and 1/10 ounce). Over 47 million ounces of gold have been circulating as Krugerrands since their creation in 1967. Their value is simply the value of their gold content. As the Krugerrand is one of the easiest gold coins in the world, every investor should own Krugerrands as part of their gold investment strategy. Beware, there are fake krugerrands on the market.

The Krugerrand name is attributable to the Boer statesman Paul Kruger. He was a fourth term president of the South African Republic. The other side depicts a springbok, a nationwide symbol of South Africa. The picture was designed by Coert Steynberg, and was previously used on the back of the South African 5 shilling coin. The name “South Africa” together with the gold content materials are inscribed in each Afrikaans and English.

The word “Krugerrand” is now a registered trademark owned by the company Rand Refinery Restricted, of Germiston, South Africa.

The South African Mint Organization creates limited edition proof Krugerrands intended as collector’s products. The Krugerrand value is above bullion value, although non-proof Krugerrands also have a premium over gold bullion value. They can be distinguished from your bullion Krugerrands by the number of serrations to the edge from the coin. Proof coins have 220 while bullion coins have 160 of these.

The Krugerrand is minted in gold for historical reasons. You may run across some Web sites offering to provide silver Krugerrands, but, according to the “Tax Free Gold” site, there is no silver Krugerrands minted. These kinds of coins “are not official, don’t have any authorized tender value, are not made or sanctioned by the South Africa Mint or Authorities, and have no Krugerrand value.

How has the design of the Gold Krugerrand coin changed over time?

The design of the Gold Krugerrand coin has remained largely unchanged since its inception in 1967. The coin features a profile of Paul Kruger, a former South African president, on the obverse side, and a springbok antelope on the reverse side. The Krugerrand series underwent an updated design change on the reverse in 1982, with differences mainly being on the springbok design. 

The Krugerrand coin is made of an alloy of gold and copper, which makes it durable and resistant to wear. Originally, there was only one-ounce gold Krugerrand coin, but the mintings now include the production of 1/2-ounce, 1/4-ounce, and 1/10-ounce coins.

The updated design change on the reverse of the Gold Krugerrand coin in 1982 did not have a significant impact on its popularity. The Krugerrand coin was specifically produced to offer an easy means for private investors to access the gold bullion market, and it exceeded expectations and was wildly successful. It quickly became the most popular gold bullion coin worldwide, and by the end of the 1970s, the term “Krugerrands” was largely synonymous with “gold coins.” Krugerrands became especially popular with U.S. gold investors, as the commodities markets enjoyed a major bull market during the 1970s.

The price of gold soared to over $2,200 an ounce by the end of the decade – a price level it would not approach again until 2011. By 1980, Krugerrands accounted for 90% of the world’s gold bullion market. The popularity of the Krugerrand fluctuated during the 1980s and 1990s due to the global concern about the South African policy of racial segregation known as apartheid. However, the Krugerrand remains a popular investment option for gold investors who wish to make a direct investment in gold bullion, hedge their portfolios against the U.S. dollar, or further diversify their portfolio.