Whether you are a serious numismatist, an investor wanting to diversify your portfolio, or a casual collector with an interest in coins, you will be interested to know more about buying Krugerrand coins.
If you buy a gold Krugerrand coin as an investment, you know you’re getting a 22 carat gold coin that is of a very high quality and that contains 1 troy ounce of gold. It is one of the most highly traded coins internationally.
If you are new to buying coins and investing in gold, you may want to start off slowly by buying just one coin to see what the process is like. You can either buy a gold Krugerrand of the current minting year, or you can buy an older coin. You can also choose between a rarer ‘proof’ coin which is more suited to collectors, or a bullion coin which is more suited to investors. Krugerrands are also available in other precious metals like silver and platinum.
If you prefer to buy a couple of coins at a time, you could also look at the various coin sets that are available.
Just like with any bullion or coins, you will need to ensure that you buy your coins from a reputable source, to ensure their authenticity and purity. As a buyer, you should also ensure that you have somewhere safe to store the coins. There are many professional services that can provide safe storage, insurance, and annual valuations for your coin collections. You also need to ensure that you buy the coins at a good price.
Below we provide an overview of the history of the Krugerrand, we explain the difference between Krugerrand proof and bullion coins, and we list the various Krugerrand coins that have been produced and which are available for purchase. We also give a brief overview about trading in Krugerrands.
About Gold Krugerrand and South African Mint
The Krugerrand is a South African coin that was first minted in 1967 by the Rand Refinery and the South African Mint. At the time, South African was one the world’s largest suppliers of gold. The name of the coin comes from ‘Paul Kruger’, who was a President of South Africa, and the ‘Rand’, which is the official currency in South Africa.
These coins have no face value, but are legal tender in South Africa and are a commonly traded coin worldwide. Originally minted as gold coins, a silver version of the Krugerrand was minted in 2017 by the Rand Refinery.
The gold Krugerrand was originally minted in a copper-gold alloy and soon thereafter, another three smaller coins were introduced. In the 1970s the gold Krugerrand became one of the most traded gold bullion coins in the world. During the 1970s and 1980s, many Western countries started to impose sanctions against South Africa because of its apartheid regime and that made the international sale of Krugerrands illegal in most countries. Most economic sanctions ended in 1991, opening up the market for the trade in Krugerrands once more. Since then, a few new additions to the Krugerrand range have been added.
Designed by Otto Schultz and Coert Steynberg
The Krugerrand coin’s obverse was designed by Otto Schultz. It has the face of former President, Paul Kruger. The reverse side has a springbok antelope which is the national animal of South Africa and the image was designed by Coert Steynberg.
The coins are inscribed with the name”South Africa” and “Suid-Afrika” which is the Afrikaans translation. Krugerrand is a registered trademark of the Rand Refinery.
Bullion Krugerrands and Proof Krugerrands
There are two types of Krugerrand coins: bullion coins and proof coins. Limited edition proof coins are produced as collectors’ items and are therefore priced above bullion coin values. The proof coins are distinguishable in that they have 220 serrations along the coin edge, compared with the bullion Krugerrand coins which have only 160 serrations. The value of proof Krugerrand coins is determined by the rarity of the particular coin and the value of the precious metal the coin is made from.
In 2017, to mark the 50th anniversary of the Krugerrand, a number of commemorative coins were produced in gold, platinum, and silver. Each has a distinguishable 50 privy seal mark.
There are various Krugerrand coins produced each year by the South African Mint (which is a wholly-owned subsidiary of the South African Reserve Bank).
The 1 oz gold Krugerrand coin
This is the original gold Krugerrand minted in 1967 and is produced as bullion and proof coins.
½ oz, ¼ oz, and 1/10 oz Krugerrand coins
These smaller coins were first produced in the 1908s as bullion and proof coins. From 2021, the ½ oz coin will only be available as part of the three different coin sets.
2oz gold proof Krugerrand coin
This new Krugerrand gold coin was launched in 2018.
1/20oz gold proof Krugerrand coin
This coin was introduced in 2017 as part of the 50th anniversary range. It is now only available as part of the ‘Prestige Set’.
1/50 oz gold proof Krugerrand coin
This is the smallest Krugerrand coin, which was launched in 2017 as part of the 50th anniversary range. It is also available as part of the various Krugerrand sets.
1oz fine-silver proof Krugerrand
This coin was introduced in 2017 as part of the 50th anniversary range and is the first silver proof coin.
2oz fine-silver proof Krugerrand
This is a new coin that was first minted in 2021.
You can also purchase various Krugerrand sets, such as the Krugerrand Prestige Set, the 2020 Krugerrand Fractional 5 coin Set, and the 2020 Krugerrand Fractional 6 Coin Set with Silver.
Trading and Investing in Gold Coins and Gold Bullion Coins
Krugerrands are among the most traded gold coins globally. They can be traded through the Johannesburg Stock Exchange (JSE) or through an authorised dealer of the Rand Refinery and the South African Mint. Some banks are also authorised to trade in Krugerrands.
You can also buy gold Krugerrands through an investment company that buys them at a wholesale price and then stores and insures them and also values them annually.
Krugerrands don’t have an assigned value, so their value depends on the price of gold when they are traded and the value of the particular Kruggerrand coin. Ideally, you would like to buy gold coins when the price of gold is low and sell them when the price is higher.
When you buy coins, you need to consider that you may need to pay a broker or dealer commission. Also bear in mind that certain states require tax to be paid on gold, so you’ll need to check your state tax laws.
Many investors like to buy Krugerrands because they are reliable, durable, and have high gold purity while also being easy to trade. It also helps investors to diversify their assets and investment portfolios to buy gold bullion and rare coins. And because they can be easily bought and sold, it means that investors can liquidate their assets quickly into cash when needed. They are also a way of owning gold in small quantities, making them easy to store.
FAQs about Krugerrands
How much is a Krugerrand worth today?
The value of Krugerrands coins is related to the value of gold, which varies with time – there’s no fixed price for Krugerrands. The proof Krugerrand coins may differ in value from the bullion coins, because they are rare collectable coins.
Can you buy a Krugerrand?
Yes. Krugerrands are actually one of the most traded bullion coins on the market, which you can buy and sell.
How much does it cost to buy a Krugerrand?
The price of the Krugerrand fluctuates with the price of gold. There are a range of different Krugerrands, all made from different precious metals and in different sizes, so each will have a corresponding value. You will also pay different prices depending on which dealer you buy from, and whether or not the coins is a rare collectable version or not.
Why are Krugerrands illegal?
Krugerrands are not illegal, but they were once illegal to be traded in internationally when many Western countries imposed economic sanctions on South Africa because of its apartheid regime. Most sanctions ended in around 1991 and the coins are now once again a popular coin internationally.
Final Thoughts on Buying Gold Krugerrands
Krugerrands are a popular range of coins, minted in South African, that can be bought as an investment to help diversify your portfolio. The proof Krugerrands are also popular with collectors.
Krugerrands are particularly sought after because they are widely traded and can therefore be easily sold and converted into cash if needed. They are also small and can be easily stored.
The gold Krugerrand has a long history of being traded since the 1960s when they were first produced, and since then there are several other versions that have been made in different sizes and from different precious metals (silver, gold and platinum). Some are more collectible versions, or proofs, while others are bullion coins that generally hold a higher market value than other bullions.
Like with any precious metals, bullion and coins, you need to be careful to purchase Krugerrand coins from reputable dealers as there are many fake coins in circulation. You also need to consider the price for the coin and to check that it’s market related when you buy the coin. Furthermore, consider whether you will store and insure the coin yourself or if you will pay a company to do that on your behalf. And consider any tax implications of buying coins in your state.