Krugerrand. To those unaware, it may sound like a word used for some obsolete pronunciation mark, or perhaps an expensive brand of coffee or an even more expensive foreign car. However for those well learned in the precious metals market, the word "Krugerrand" is quite familiar. It is a South African gold coin. Or perhaps it is THE South African gold coin. It's complicated sounding name is actually a compound of two words, "Kruger," after Paul Kruger, the 5th President of the South African Republic, who served four terms between 1881 and 1883 and is depicted on one side of the coin, and "rand," which is the South African unit of currency.
First minted in 1967 to help stimulate the economy and market South African gold, the Kruggerand quickly became the number one choice for investors worldwide wanting to buy gold, and its popularity and sale skyrocketed during the great bull market in gold of the 1970s. By the 1980, it is estimated that the gold Krugerrand accounted for approximately 90% of the global gold coin market, and despite the fact that some countries forbade import of the Krugerrand during the 1970s and 1980s due to its association with the apartheid government in South Africa (which has since been abolished), the coin remains irrevocably popular among coin collectors today.
As of 2008, over 46 million ounces of gold have been sold worldwide as Krugerrand coins, and just between 1974 and 1985 in the United States alone, over 22 million Krugerrand coins were imported.
Minted by the South African Mint, the gold Krugerrand was introduced and initially minted as a vehicle for private ownership of this precious metal, however over time it was eventually granted the status of "legal tender," or currency. Upon that happening, it was minted in a more durable copper-gold alloy. In addition to the 1 troy oz. gold coin, in 1980 the South African Mint introduced three smaller coins, including the half-ounce, quarter-ounce, and tenth-ounce coins.
After seeing the huge success of the Kruggerand, many other countries followed suit and began to issue their own gold coins as well. This includes Canada (the Gold Maple Leaf, 1979), Australia (the Nugget, 1981), China (the Gold Panda, 1982), America (the Gold Eagle, 1986), and Britain (the Britannia coin, 1987). Additionally, there are limited edition "proof" Krugerrand coins that are distributed as collector's items, and like regular, non-proof Krugerrands, hold a value slightly above that of bullion value. The only distinguishing factor between the two (proof and non-proof) coins are the number of serrations on the outer edge, of which the proof coin has more.
First minted in 1967 to help stimulate the economy and market South African gold, the Kruggerand quickly became the number one choice for investors worldwide wanting to buy gold, and its popularity and sale skyrocketed during the great bull market in gold of the 1970s. By the 1980, it is estimated that the gold Krugerrand accounted for approximately 90% of the global gold coin market, and despite the fact that some countries forbade import of the Krugerrand during the 1970s and 1980s due to its association with the apartheid government in South Africa (which has since been abolished), the coin remains irrevocably popular among coin collectors today.
As of 2008, over 46 million ounces of gold have been sold worldwide as Krugerrand coins, and just between 1974 and 1985 in the United States alone, over 22 million Krugerrand coins were imported.
Minted by the South African Mint, the gold Krugerrand was introduced and initially minted as a vehicle for private ownership of this precious metal, however over time it was eventually granted the status of "legal tender," or currency. Upon that happening, it was minted in a more durable copper-gold alloy. In addition to the 1 troy oz. gold coin, in 1980 the South African Mint introduced three smaller coins, including the half-ounce, quarter-ounce, and tenth-ounce coins.
After seeing the huge success of the Kruggerand, many other countries followed suit and began to issue their own gold coins as well. This includes Canada (the Gold Maple Leaf, 1979), Australia (the Nugget, 1981), China (the Gold Panda, 1982), America (the Gold Eagle, 1986), and Britain (the Britannia coin, 1987). Additionally, there are limited edition "proof" Krugerrand coins that are distributed as collector's items, and like regular, non-proof Krugerrands, hold a value slightly above that of bullion value. The only distinguishing factor between the two (proof and non-proof) coins are the number of serrations on the outer edge, of which the proof coin has more.
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