Gold Krugerrand Value
Gold Krugerrand coins are very popular now. The Krugerrand is a South African gold coin first produced by the South African Mint Company in 1967. Half ounce, quarter ounce, and tenth ounce Krugerrand Gold Coins were introduced in 1980. Their gold content guaranteed: gold Krugerrand value is guaranteed as to weight and gold content by the South African government. Each coin contains 1 oz of fine gold bullion.
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
Gold Krugerrand value is based upon its gold content plus a premium. Gold Krugerrand of different sizes fetch different premiums. Gold Krugerrand Value is also affected by factors such as condition (uncirculated vs circulated) and special preparation, such as proof coins.
So, the majority of a gold Krugerrand value comes from the gold content. To determine how much that is, you can check the current gold spot price. Once the spot price of gold fluctuates in the gold market, the 1oz gold Krugerrand value changes correspondingly.
Why Krugerrand Gold Coins?
Krugerrand gold coins are the most widely circulated gold bullion round in the world. The South African Krugerrand tends to carry less premium than the Canadian Maple Leaf or the American Gold Eagle. As a result, you can buy these coins cheaper, because you’re paying less above the then-current spot price of gold. The theory is that you will get less when you sell, so the discount on the front end may be moot. However, at present I’m most concerned with amassing as much metal as possible, not contemplating potential scenarios down the road. Having widely recognized one-ounce rounds familiar to people all over the world, such as Krugerrand gold coins, is appealing.
All the Gold Krugerrands are sold with a premium tacked on, which is for shipping, handling and mintage fees. Premium is higher on the fractal gold Krugerrand coins. 1/10 oz Krugerrand has the highest premium (up to 12%) when 1-oz Krugerrand coins has the smallest premium (up to 5%). If you could afford a 1 oz of gold, you would look to buy a 1 oz Krugerrand as opposed to two 1/2 oz Krugerrands.
Gold Krugerrand Price
The reason the 1-oz is so popular is because of its reasonable prices, genuine quality and the purity of gold. Some gold coins may have a value that is far higher than their gold content alone. In most cases though it is fair to say that most gold coins and gold Krugerrands are valued mainly from their gold content. Once the gold spot price fluctuates in the market, the 1 oz gold Krugerrand price changes correspondingly.
Different sizes of gold bullion Krugerrand carry different premiums, and Krugerrand price is also affected by such factors as condition (circulated versus uncirculated) and special feature, such as proof coins.
Besides the gold spot price, you have to add premium for the 1 oz gold Krugerrand when estimating gold Krugerrand price. Gold Krugerrands usually carry small premiums from 4% to 12% depending on the coin sizes and purchase quantity. Usually 1-oz Krugerrand coins carry the smallest premium but the smaller fractional sizes Krugerrands (1/2 oz, 1/4 oz and 1/10 oz) carry higher premiums.
Buy Gold Krugerrands.
1oz Krugerrand orders usually are filled with mixed dated coins but sometimes tubes contain Krugerrands dated the same year. Today, South African Krugerrands prices are usually less than American Gold Eagle prices.
We recommend 1oz Krugerrand gold coins over gold bars and gold ingots because they’re far easier to buy, store, and transport, and do not incur the additional costs of assaying when it is time for you to sell. And it is easy to sell Krugerrands if you want.
Krugerrand proof coins are minted to have an additional numismatic value- or a value for collectors on top of the gold value. 1oz Krugerrand proof coins have a limited mintage, or number of coins produced. The Krugerrand proof coins also have quite a bit of special handling. The Rand Refinery specially polishes the blanks. Then the press operator at the mint hand loads the blanks, which are then double stamped to produce the highest quality impression on the coin. They also have special features to set them apart- for example a frosted finish, as well as more reeds on the edge of the coin. Gold bullion Krugerrand proofs sets will also usually come with a numbered certificate of authenticity. All of these factors add up to scarcity, and scarcity leads to a higher Krugerrand price.