We buy and sell Krugerrands at the BEST PRICES - Whether you are interested in buying or selling Krugerrands, contact John Adams on +27 11 484 7554, we do both.
Krugerrands and where they came from
Over forty years ago the South African government had an idea to sell gold bullion to the international community. Unfortunately, the United States government had regulations prohibiting regular citizens from owning gold bullion, however, they could own foreign gold collectible coins, but it had to be legal tender. The South Africans got around these technicalities by minting a one troy ounce gold bullion coin and declaring it legal tender.
Rather than stamp it with a denomination, they stamped it with the weight of the gold, and the Krugerrand was born in 1967. Today the Krugerrand is the most circulated gold coin in the world, with more gold Krugerrands in circulation than all other gold coins combined. This fact is made a little more interesting by the fact that due to international sanctions, from the mid eighties to the mid nineties, Krugerrands couldn't be purchased legally.
After the Apartheid ended, Krugerrand trading became legal again. If you take a look at the gold price over the last 30 years, you will see that the gold price had been relatively stable before the turn of the century, however in the last decade it has been steadily rising. In times of economic challenge, investors shift back to hard assets- such as gold. Krugerrands of course, follow the price of gold.
There is a small premium for the coin (usually between 1-8%, depending on condition, collectibility, and of course the market), but it has always been intended as an investment medium for gold bullion. The premiums on buying a 1 oz gold Krugerrand are generally smaller than those on the fractal Krugerrands.
Here are some specifics on the physical characteristics of the 1 oz gold Krugerrand:
Gold Content: 1.0 oz, or 31.103 grams.
Weight: 33.930 g
Fineness: 22 carats
Diameter: 32.77 mm
Thickness: 2.84 mm
The circumference of the Krugerrand is covered with tiny ridges, which are called reeds. The reeded edge, as it is known, contains 180 reeds on a 1 oz gold Krugerrand. The man on the Krugerrand is Paul Kruger, who was the 5th President of South Africa. Coert Steynberg, a South African coin designer, contributed a Springbok antelope, to grace the other side of the coin. Last but not least, there is that all important weight denomination, it is after all, a 1 oz Gold Krugerrand.