The South African Krugerrand coin is one of the world’s most prestigious and actively traded gold bullion coins, famous for its rich history and iconic design. But what do you know about this iconic gold coin? This blog answers some of the most frequently asked questions about the Krugerrand.
When was the first Krugerrand gold coin minted?
The South African Mint released the very first Krugerrand gold coin in July 1967.
In a time of great political upheaval and uncertainty due to the Cold War, the Vietnam conflict, and Richard Nixon ending the Gold Standard, South Africa made the decision to strike its own gold coin. While previous gold coins had been struck primarily for the rich, the Krugerrand gold coin was designed as the ‘working man’s coin’ - a coin for the hard-working wider population who wanted to preserve their savings.
The Krugerrand is considered to be the world’s first gold bullion coin. After the unrivalled success of this coin becoming the number one choice for gold investors, other countries soon followed suit. The first was Canada, who introduced the 1oz Maple Leaf in 1979, and other countries such as the USA, UK and Australia soon followed, introducing their own gold bullion coins.
Weight, purity and design of the Krugerrand coin
The Krugerrand bears the portrait of Paul Kruger, president of the old South African Republic, on the obverse of the coin. The reverse of the coin features a Springbok Antelope, a national symbol of South Africa. The name ‘Krugerrand’ is a combination of two words - the name of the president at the time; Paul 'Kruger', and the unit of currency of South Africa the 'Rand'.
The actual weight of a 1oz Krugerrand is 33.9 grams. Each coin is minted in 916.7 (22ct) gold, so that the coin contains precisely one Troy ounce of pure gold. The remaining weight is due to the copper alloy, which is added to create a more durable coin, and also makes the Krugerrand slightly red in colour.
Gold Krugerrand coins are available as 1oz, 1/2oz, 1/4oz and 1/10oz gold coins. Originally minted only as a 1oz coin, the 1980s saw fractional Krugerrands introduced to make them even more accessible and affordable.
Can Krugerrands be used as legal tender?
Yes. The 1oz Krugerrand has a face value of 1 Rand, though this is not detailed on the coin itself. However, the true value of the Krugerrand coin comes from the value of the pure gold contained within it.
Krugerrands have a chequered past
During the 1970s & 1980s, economic sanctions were held against South Africa for its policy of apartheid. Buying Krugerrands during these times could be seen as approval of the practice, and so some Western countries such as Great Britain made the Krugerrand an illegal import during these times.
Since the end of apartheid in 1994, production levels of the Krugerrand have steadily increased and the Krugerrand is now seen as one of the most well-respected gold coins in existence today.
Silver Krugerrand coins
In 2018, the South African Mint added a silver bullion version of the famous Krugerrand coin to its range. There has been a silver 1oz Krugerrand coin released every year since.
Are South African Krugerrand gold coins a good investment?
If you are looking for a dependable gold coin for investment, the South African Krugerrand is the most popular investment bullion coin in the world, making it an excellent coin to consider adding to any precious metals investment portfolio.
As one of the world’s most beloved and recognisable coins, the gold Krugerrand coin is recognised worldwide and can be traded practically anywhere in the world, at any time. To date, millions of ounces of gold have been used in the minting of gold Krugerrands, and the coin remains one of the most traded gold bullion coins in the world.
Where can I buy and sell Krugerrand coins in the UK?
If you are considering adding gold Krugerrands to your investment portfolio, Atkinsons Bullion have a wide selection of the newest 2022 coins, as well as a selection of pre-owned Krugerrand coins, which are all available to buy with free fully insured UK delivery.
If you are looking to sell your gold Krugerrands, Atkinsons always aim to offer you the very best price for your items and have a team of experienced appraisers to give you an accurate indication of the price of your goods, ensuring you get a fair price every time. You can see an up-to-date list of the current prices we are paying on our ‘Sell to Us’ page.
Whether you’re looking to buy or sell Krugerrand coins, Atkinsons specialise in the purchase and sale of gold and silver, and have provided a trustworthy service to customers throughout the UK for over 30 years. For more information, you can email us at email@example.com or call us on 0121 355 0620.
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.