South African Gold Krugerrand Coin
The Krugerrand was the world's first gold bullion coin, specifically minted to contain exactly 1 troy ounce of gold. Developed by the South African mining industry as a more convenient and liquid alternative to gold bars, the Krugerrand took the investment market by storm. It became so ingrained in 1960s pop culture that even James Bond movie villains began preferring their gold ransoms be paid in the form of Krugerrands. In the real world, the Krugerrand was purchased by the millions each year as a hedge against inflation. By 1980, the Krugerrand was estimated to comprise 90% of the global gold coin market. A tradition began in the 1980s of anonymous benefactors in several U.S. cities dropping a Krugerrand into Salvation Army kettles at Christmas time.
In order to ensure investor confidence in their new coin, the South African government invented a new legal tender denomination by combining the name of Paul Kruger, the first president of the South African Republic, and the name of the national currency, the rand. As legal tender, the Krugerrand's weight and purity is backed by the government of South Africa.
The monopoly the Krugerrand enjoyed in the global gold market was broken by international sanctions against South Africa for its racially repressive policy of apartheid. Alternatives such as the Canadian Gold Maple Leaf, American Gold Eagle, and Australian Gold Kangaroo appeared, filling the investment vacuum in Western markets. With the establishment of a national unity government and the abolition of apartheid in South Africa in 1994, the Krugerrand once again became available to investors worldwide.
The Krugerrand is struck from 1 troy ounce of gold, alloyed with 8.33% of copper, resulting in a 22K coin weighing 33.93 grams (1.0909 troy ounces).
Facts About the South African Krugerrand Gold Coin:
There have been more than 60 million Krugerrands sold since 1967 – more than all other modern gold bullion coins combined.
Fractional Krugerrands of 1/2, 1/4, and 1/10 troy ounce were introduced in 1980.
The Krugerrand is made using traditional 22K “crown gold” instead of .999 fine gold to reduce wear, as it was originally intended to be a circulating gold coin. It still contains a full troy ounce of gold, plus 0.0909 troy oz of copper.
The springbok antelope portrayed on the reverse of the Krugerrand is the symbol of South Africa in the same way the gold kangaroo is the symbol of Australia.
|Gold Content||91.67% gold (22-karat)|
|Weights / Denominations||
1 troy oz (Krugerrand),
1/2 troy oz (1/2 Krugerrand),
1/4 troy oz (1/4 Krugerrand),
1/10 troy oz (1/10 Krugerrand)
|Front / Obverse||Paul Kruger, country name in Afrikaans and English. Artist: Otto Schultz|
|Rear / Reverse||Springbok antelope, weight and fineness, denomination. Artist: Coert L. Steynberg|
|Diameter / Thickness||
1 oz (32.77mm x 2.84mm),
1/2 oz (27.07mm x 2.22mm),
1/4 oz (22.06mm x 1.89mm),
1/10 oz (16.55mm x 1.35mm)
Why Buy The South African Krugerrand?
The Krugerrand is the most widespread gold bullion coin in the world, instantly recognizable and convertible to cash. Made from 22K “crown gold”, which has been used for centuries to mint circulating gold coins, Krugerrands are less vulnerable to wear than .999 gold coins. They also have a lower premium over spot than many alternative gold bullion coins.