
The coin is so named because the obverse bears the face of Boer statesman Paul Kruger, four-term president of the old South African Republic. The reverse depicts a springbok, the national animal of South Africa.
The word “Krugerrand” is actually a registered trademark owned by the Rand Refinery, of Germiston.
1. It’s the Right Weight and Purity of Gold
The Krugerrand is a South African gold coin containing 1 troy oz of gold. The gold price is set in US Dollars and represents the exact value of 1 Krugerrand. This has helped the Krugerrand become a top choice by many since its inception in 1967 as a vehicle for private ownership of gold.
2. It Has History
In the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide. Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. By 1980 the Krugerrand accounted for 90% of the global gold coin market. That year, South Africa introduced three smaller coins containing 1⁄2, 1⁄4, and 1⁄10 troy ounce (15.6, 7.8, and 3.1 g) of gold
Economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s, with the United States, which had historically been the largest market for the coin, banning imports in 1985.
In the previous year, over US$600 million of Krugerrands had been marketed in the country. Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.
3. It’s the Original Gold Bullion Coin
Due to its huge success, many other gold-producing countries followed, including the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1987, the Chinese Gold Panda in 1982,the American Gold Eagle in 1986,and the British Britannia coin in 1987.
4. Its 24 carat Pure Gold
Actually no, it isn’t. A Krugerrand is actually not pure gold which would be .999 and 24 carats. The 1oz Gold Krugerrand is minted in 22 carat gold, a purity of 91.67% and the remaining 8.33% is made up of the metal alloy copper. This unique pairing provides the distinctive orangey colour and gives the coin greater durability.
In fact, the Canadian Maple Leaf is greater purity, so why buy the Krugerrand? Actually these two coins sell for about the same price because both have a good reputation in the global market and while the Krugerrand contains a smaller percentage of gold, it is slightly heavier.
5. It Offers Financial Benefits
Whereas a lot of coin collecting is about one unique coin, the Krugerrand is more of a commodity.
- It is an investment containing 1 troy ounce (1 oz) of investment-grade gold
- Legal tender coin backed by the government of South Africa
- VAT free
- The Rand Refinery and the South African Mint are respected producers
- Competitive pricing and premiums
- Portable, internationally liquid form of financial insurance