Coining your Krugerrands
Did you know that South Africa’s own Krugerrand is the most widely held and actively traded gold bullion coin in the world? The name of Paul Kruger and his part in shaping South Africa may fade into the annals of history, but his name and image are set to live on in the Krugerrand, the gold coin that has eternal value.
The Krugerrand holds various meanings for the people who own them. For some the coins are treasured for their investment value, while for others they fulfil a collectors’ desire or nurture a sentimental memory. One thing is common among the owners of this lustrous coin and that is the Krugerrand is held dear and valuable.
The Krugerrand was first minted in 1967 as a way to help market the gold produced in South Africa – this was during a time when the country’s gold mines were producing vast amounts of gold and needed a way to turn it into marketable cash. It was understandable that promoting the gold was important especially after the Gold Standard collapsed in 1971.
The Krugerrand became the world’s first ounce-denominated gold coin carrying legal tender – if you look at a Krugerrand you’ll see that it has no recorded monetary value on any side of the coin. The reason for this is because the value of the coin is directly related to the prevailing value of its fine gold content. In a nutshell, Krugerrands were mass produced for the man on the street to easily buy and sell gold.
So let’s take a look at 5 reasons why the Krugerrand is the must have coin around the world:
- It has become the default gold bullion coin for investors.
- It is an ideal coin for collectors because aside from the normal Krugerrands there are also special coins bearing mint marks, rare editions and proof coins.
- Gold generally performs well in uncertain times, which means so do Krugerrands, and currently, the world economy is experiencing highly uncertain times.
- Krugerrands can be kept as a security blanket and used when most needed but they can also be kept to pass on to future generations.
- Krugerrands are the easiest and most affordable way to invest in gold bullion. You can own as many as you like, they are not subject to VAT charges, and there are currently no FICA restrictions and other consideration requirements on the coins.
Did you know?
- Since the first coin was created, more than 50 million Krugerrands in varying sizes have been minted.
- The Krugerrand was the first legal tender gold bullion coin to gain worldwide use in the modern era.
- The Krugerrand is 22 carats which is eleven parts gold to one part copper – the reason why it isn’t 24 carats gold is because it would bend and scratch too easily. Because of the copper, the coins have a coppery tone to them.
- There are only gold Krugerrand coins and it is this factor that distinguishes them from other modern bullion gold coins which can also come in silver. This means that if you come across silver Krugerrands, they are counterfeit.
- Paul Kruger’s face is featured on the obverse side of the coin while a leaping springbok graces the reverse side.
- The Krugerrand is one of the oldest bullion coins in the world.
Gold has been the most consistently popular investment for centuries now and Krugerrands are simply an accessible form of gold. This means you get to own gold bullion without it costing an arm and a leg.