Produced from one of the world's largest gold mines in South Africa, the Krugerrand is the original and most recognized one-ounce gold bullion coin. First minted in 1967 from Rand Refinery, it was developed to internationally promote South African gold by making it easy for anybody to invest in gold. It's been legal tender since it was created, which means that you can take your investment with you wherever you go--and sell it pretty much anywhere in the world for cash.
If you're thinking about buying Krugerrands as an investment, here's what you need to know about the most popular gold bullion coin in the world:
The makeup of the Krugerrand
The Krugerrand is comprised of copper and gold alloy that weighs a total of 1.0909 Troy ounces, of which one Troy ounce is 24 karats of pure gold (.999). The copper alloy makes it highly durable and scratch-resistant--and gives the Krugerrand its signature orange-gold hue. Marked only with its weight in gold to emphasize its value, no face value is inscribed on the coin.
The design of the Krugerrand
The Krugerrand's obverse, designed by Otto Schultz, displays the bust of Boer statesman and four-term president of the old South African Republic, Paul Kruger. The Krugerrand's name itself is a compound of Paul Kruger's surname and rand, the word used to describe South Africa's currency. The words South Africa,written in English and Afrikaans, encircle Kruger's profiled bust. Displayed on the gold coin's reverse is the springbok antelope, a national symbol of South Africa, designed by renowned South African sculptor Coert Steynberg.
The history of the Krugerrand
Because of the South African policy of Apartheid, U.S. citizens could not legally import Krugerrands as gold bullion. However, there was no law against collecting foreign coins, and so Americans were still able to purchase Krugerrands legally. When the importation ban lifted in the mid-1990s, other nations had been inspired by the Krugerrand to mint their own one-ounce bullion coins, as well as gold coins in smaller denominations. South Africa followed suit, and today you can purchase 1/2 ounce, 1/4 ounce and 1/10 ounce Krugerrands in addition to the original one-ounce gold bullion coin that blazed the trail.
Despite the nearly 10-year U.S. importation ban, more gold Krugerrands have been minted and circulated than all other gold bullion coins combined. Because of the Krugerrand's popularity, it's a great way to track the price of gold worldwide. Today, even with competition from the gold Canadian Maple Leaf and American Gold Eagle, the Krugerrand remains the most widely held and actively traded gold bullion coin in the world.
Interested in learning more about investing in South African gold Krugerrands or other gold bullion coins? Stop by and talk to the experts at West Seattle Coins and Bellevue Rare Coins. We'll give you the information you need to make a smart investment.
Content by Megan Hall for West Seattle Coin and Bellevue Rare Coins:
West Seattle Coins and Bellevue Rare Coins specializes in gold buying and dealing in rare coins. We are a family-owned business that was first established in 1979 and is now located in West Seattle, Bellevue and Lynnwood. We also buy and sell gold, silver, diamonds, currency and jewelry. Visit us first for a free evaluation.
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