The History and Price of Krugerrand Gold Coins
The South African gold Krugerrand was named after Paul Kruger the President of Transvaal (the old South Africa) from 1882 until 1900. His portrait remains on the face of all gold Krugerrand coins today. On the back is a springbok, a type of gazelle and a national symbol of South Africa.
First introduced in 1967, the Krugerrand was intended to facilitate the private ownership of gold. The weight of gold contained in the coin are written on it and the quality and country are stamped in both English and Afrikaans.
Each gold Krugerrand contains 1 troy ounce of gold, although the coin is slightly heavier than this as it is 22 Karat gold (pure gold is 24K). The remainder of the weight is copper, which has been added to the pure gold to make it stronger and more wear-resistant.
The Krugerrand was an immediate success with collectors and investors buying gold coins and in its first year 40,000 standard and 10,000 proof coins were struck. It is still the most popular gold coin for investment in the world today.
In the late 19th century, the discovery of gold in an area of South Africa, led to a gold rush and ultimately to the Boer war. At the end of which in 1902 the Transvaal as South Africa was then known reverted back to being part of the British Empire.
The Rand Refinery, where all the gold used for Krugerrand coins starts its journey, began in the early 20th century. It is now the largest gold refinery in the world, producing not only the gold blanks for Krugerrands, but also gold bullion bars and supplying jewelers.
At a time when Americans were prevented from buying gold bullion, they were still legally able to own foreign coins. As Krugerrands are technically currency and also conveniently have their gold weight stamped on them, they were a means for American citizens to own gold legally. However, trade sanctions imposed against South Africa because of the Apartheid regime meant it was illegal to import Krugerrands until the 1990s.
Now anyone can buy and sell Krugerrand gold coins freely.
But, of course, the rising price of gold still made the ownership of full 1 ounce gold Krugerrands prohibitively expensive for many. So the South African mint introduced a 1/2 oz, a 1/4 oz and a 1/10th oz coin.
All gold coins are popular with investors and collectors alike. Their appeal lies in their increasing value and the fact that they are easily bought and sold worldwide. Following on from the success of the Krugerrand, Canada minted their first gold Maple Leaf coins in 1979 and America its American Eagle in 1986.
