The face of a Krugerrand coin bears the image of Paul Kruger, who was president of the South African Republic from to The Johannesburg Stock Exchange JSE trades in Krugerrands through a well-regulated secondary market in the same way as any listed equity market instrument, with quoted prices based on the weight of the coins. Because of its legal tender status in South Africa, the Krugerrand was minted to be more resilient to wear than the karat gold coins used for decoration medals.
The Krugerrand is made of 22 karats, or When Krugerrands were minted in , the United States did not permit its citizens to own gold bullion, but it did permit ownership of foreign coins, so the Krugerrand could be bought and sold in the U. During the s and '80s, numerous Western countries banned the import of Krugerrands as part of enforced economic sanctions against South Africa because of apartheid.
The United States banned the import of Krugerrands in These economic sanctions ended in the West in when apartheid was abandoned by South Africa. However, many U. Throughout the s, Krugerrands quickly became the leading choice for gold investors.
In , following the end of apartheid, production of the Krugerrand plummeted. Since then, South Africa's gold production bounced back, but it has never returned to its heyday levels of the s and '80s. Today, Krugerrands continue to suffer. Krugerrands remain a popular investment for gold investors in part because of their value and small size, which makes for easy storage. Krugerrands appeal to professional and private investors who wish to make a direct investment in gold bullion, hedge their portfolios against the U.
Investors continue to buy gold because of the proven longevity of its value. Many gold investors consider this precious metal a safe investment that will retain its value even in an economic collapse. Owning a tangible asset appeals to some investors, who may put greater trust in physical coins or bars than in securities investments that exist only on paper. If you are interested in buying Krugerrands you should have a secure place in which to store them.
Here are some features of investing in gold that some investors could find attractive:. South African Government. SA Shares. South African Reserve Bank. Rand Refinery. Los Angeles Times. African Krugerrands. Baltimore Sun. The Washington Post. The 1oz Krugerrand bears a face value of 1 Rand. 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. The actual weight of a 1oz Krugerrand is Each coin is minted in The remaining weight is due to the copper alloy, which is added to create a more durable coin.
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 , 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.
In the s, fractional Krugerrands were introduced to make them even more accessible and affordable. 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, , 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.
Proof coins have edge serrations, while bullion coins have Krugerrands were first minted and issued in , and have been produced every year since. They have legal tender status in South Africa, which allowed them to be imported into many, but not all, countries without import taxes, duty or VAT.
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