The South African Krugerrand coin is one of the world’s most prestigious and actively traded gold bullion coins, and recently the South African Mint began manufacturing a silver version of the coin. But what do you know about this iconic coin?
The first Krugerrand gold coin was minted in 1967
The South African Mint released the very first Krugerrand gold coin in July 1967, in a time of great political upheaval and uncertainty. With the Cold War, the Vietnam conflict, and Richard Nixon ending the Gold Standard, South Africa made the decision to strike its own gold coin.
It was designed as the ‘working man’s coin’
While previous gold coins had been struck primarily for the rich, the Krugerrand gold coin was designed as a coin for the hard-working wider population who wanted to preserve their savings.
It is a legal tender coin
The South African Mint originally released the Krugerrand as the country’s money, that could be adopted both locally and internationally. The 1oz Krugerrand bears a face value of 1 Rand.
The world’s first bullion coin
The value of the coin comes from the value of the pure gold contained within it, and the Krugerrand was the first coin not to feature a currency denomination on the reverse or obverse.
Each coin weighs 33.9 grams of 22ct gold
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.
The Krugerrand inspired other 1oz bullion coins
After the unrivalled success of the 1oz Krugerrand & it's becoming the number one choice for gold investors, other countries 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.
The name ‘Krugerrand’ is a combination of two words
The name ‘Krugerrand’ comes from the name of the president at the time; Paul 'Kruger', and the unit of currency of South Africa the 'Rand'.
It has something of 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.
Fractional sizes are available
In the 1980s, fractional Krugerrands were introduced to make them even more accessible and affordable. They are now available as 1oz, 1/2oz, 1/4oz and 10oz gold coins.
The Krugerrand is recognised worldwide
As one of the world’s most beloved and recognisable coins, the Krugerrand can be traded virtually 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. As of this year, 2018, the South African Mint has even added a silver bullion version of the famous coin to its range.
With so much rich history behind it, we would suggest that if you are looking for a dependable gold coin for investment, the South African Krugerrand is surely a coin to possibly consider adding to any precious metals investment portfolio.
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.