Gold and silver Krugerrands are some of the most popular coins worldwide. Both collectors and investors look for them online and through physical stores due to their worth and popularity. Their history is as fascinating as their design, which adds to their total value as an investment. However, Krugerrands became of illegal import for some time, which made them very difficult to acquire. So what is the story that hides behind these interesting coins?
Investing in gold or silver Krugerrands is an engaging activity. Moreover, adding one to your collection will benefit your display while adding value to your assets. So why do investors and collectors seek Krugerrands around the world? What makes them such an attractive asset?
The History of Krugerrands
The name Krugerrand is a compound of Paul Kruger, former Presiden of the South African Republic, and rand, the South African currency unit. The first Krugerrand ever minted was in 1967 and was made of an alloy of copper and gold. The alloy was intended for durability, as pure gold is a soft metal, and harm can come to it. In addition, the first Krugerrands intended to provide a vehicle for private ownership of gold. By 1980, thirteen years after its introduction, close to 90% of the global gold coin market was Krugerrands. That same year, half troy ounce, quarter-ounce, and tenth-ounce gold Kruggerands also appeared in the market.
However, during the 1970s and 1980s, many Western countries declared the Krugerrand import as illegal. Mainly due to South Africa’s policy of apartheid, nations such as the United States of America (the largest market for this coin) decided not to support the debatable policy by closing their trading markets. However, most sanctions ended in 1991, once the government of South Africa took measures towards it. Since their issuance, over 50 million ounces of gold Krugerrand coins were an object of trade worldwide.
Design
Krugerrands design has not changed throughout time. The obverse shows Otto Schultz’s creation of the profile of Paul Kruger. The legends SUID-AFRIKA and SOUTH AFRICA appear on this side of the coin as well. Schultz designed this image in 1892.
The reverse of the Krugerrand is a 1947 design of Coert Steynberg. A prancing springbok antelope with all four legs in the air over a grass soil. Mint date, gold weight, and a legend that reads KRUGERRAND also appear on this side of the coin.
Proof Editions
There is a limited edition of proof Krugerrands issued by the South African Mint Company. These are highly collectable items as well, and their price is above the bullion value. Although their design is identical to non-proof ones, a slight difference helps identify one from the other. The number of serrations on the coin’s edge on proof editions is 220, while bullion coins have 160.
50th Anniversary Krugerrands
In 2017, the South African Mint celebrated the 50th anniversary of Krugerrands. For this event, they produced “Premium Uncirculated” versions in gold, platinum and silver. All three were of limited mintage and carried the distinguished ’50’ privy seal mark above the springbok on the reverse.
How Much Are Krugerrands Worth?
Krugerrands do not follow a fixed face value. Instead, their worth depends on the price of gold. Krugerrands composition is 91.67% gold and 8.33% copper. Their composition makes them highly sought articles worldwide, and we can calculate their value by knowing how much gold is worth in the markets. Moreover, the demand for Krugerrands adds to their total value, as they are collectable items as well.
Different factors impact the price of Krugerrands, such as demand, gold reserves, and trading. According to the London Bullion Market Association, the worth of Krugerrands is worth whatever the value of gold is at the time of trading. That is why it is always important to know how much gold is worth. If you want to check the value of gold today, you can do so on our home page.
Are Gold Krugerrands A Good Investment?
This question is not very complex to answer. Yes, Krugerrands are an excellent investment due to their high and maintained value throughout time. As a plus, investing in coins comes with many advantages, such as portability, maintenance, and storage. Besides, when investing in Krugerrands, you choose how much you want to spend. Gold is not a cheap asset, and acquiring a bar may be too expensive for some investors or collectors. If you need to, you can learn more about the differences between investing in coins and bars. We also invite you to learn how to generate a passive income with your Krugerrands.
Many online and physical stores have Krugerrands for sale. Before accepting any trade, we recommend you to read our article on how to shop online for gold and silver coins. You can also contact us if you want to acquire Krugerrands at the best price, or visit our store for any gold or silver coin of your preference. Remember to subscribe to our weekly newsletter to receive news and updates on making the most out of your investments. You can also subscribe to our YouTube channel and follow us on our social media to receive daily news.
