What are Krugerrands?

The minting of the South African gold coins, Krugerrands, began in 1967 to provide aid to South African market of gold. These coins became the first legal gold bullion to be minted with exactly 1 ounce size. They gained popularity and soon occupied about 90% of the gold market. The coins were minted by the South African Mint Company. The name of the coin has been derived from 2 words: Kruger (signifying Paul Kruger, on the obverse side of the coin) and Rand (the currency of South Africa). They were mainly introduced for the purpose of circulating gold in terms of currency around the country. These coins do not have any aesthetic beauty; they are just gold coins with a known value and weight. Those looking for attractive coins may go in for British Sovereigns, Canadian Maple Leaf, American Gold Eagles, etc.

 

By composition, it is an alloy of gold and copper, with 91.67% gold and 8.33% copper. One ounce of the 22 karat gold coin has a total weight of 33.93 grams containing 31.1035 grams of gold. Apart from providing an orange color to the coin, copper also makes them scratch resistant and durable. The front side of the Krugerrand depicts the portrait of the former President Paul Kruger (designed by Otto Schultz) and the back side has the springbok antelope (designed by Coert Steynberg), the national symbol of South Africa.

Other than 1 ounce coin, the variations of the gold coin include 1/2 ounce, 1/4 ounce and 1/10 ounce coins. The coins of fractional sizes were made in 1980. The different features of the variations of the Krugerrands are listed in the below table:

The proof coins for the Krugerrands are also produced by the South African Mint Company for the coin collectors. These coins are a legal tender of South Africa and thus, can be imported to most of the countries without incurring any import taxes or VAT. Usually it has been seen that the premium on a 1 ounce Krugerrand is lesser than its fractional sizes. One ounce Krugerrands are commonly known as full krugers.

To buy Krugerrands, you may consider the major coin dealers and the auction houses. Among the major gold coins, the Krugerrands have a lesser premium over their price according to their gold content. You need to be aware of the fact that there are no silver Krugerrands available, unlike there are for the other common gold coins. So if any dealer offers them to you then they are giving you fake coin.

Although Krugerrands are not very attractive in their look but they are one of the popular gold coins around the world. If you desire to hold a gold coin whose value is mainly because of its gold content, then these coins are an excellent choice due to the guaranteed content of gold in it.

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1. American Eagle Gold Coins