Krugerrand Gold Coin
The Krugerrand Gold Coin
is a gold coin
minted by the South African Mint since 1967. It was quite popular during the 80s and accounted for about ninety percent of the gold coins on the market. The coin was originally minted to market the gold of South Africa. Its name is a combination of the currency unit of South Africa and the name of Stephanus Johannes Paulus Kruger who acted as a present of the Transvaal or South African Republic. The import of the Krugerrand was banned during the 1970s and 1980s due to the perceived link between the coin and the apartheid policy of the South African government.
The Krugerrand was the first coin that contained one troy ounce and from the beginning, it was intended as a way for investors to buy precious metals
. The coin was minted as a legal tender and offered for portfolio diversification to investors in the US. At that time, the United States made it illegal to own gold bullion, but the ownership of foreign gold coins was allowed. The political turmoil and conflict in South Africa affected adversely the liquidity of the Krugerrand Gold Coin. When the apartheid was abolished, the coin resumed its status as a major gold coin traded around the world.
The observe side of the gold coin features President Paul Kruger, bearing the name of the country. It is written in the two native languages of South Africa – Afrikaans and English. A springbok antelope is featured on the reverse side, which is a national symbol of the country. It was first featured on a 5-shilling coin. The fineness and year of issue of the coin are also featured on the reverse side.
The coin weighs 33.93 grams or 1.0909 ounces and is comprised of a copper alloy (2.826 grams) and 1 oz of gold. The copper alloy serves to make the coin resistant to scratching and improves its durability.
The South African Mint mints edition-proof coins which have a collector’s value. The Krugerrands are priced above the value of bullion, though other coins are also offered with an above bullion value. Collectors can distinguish the non-proof Krugerrands by the number of serrations on the coins’ edges. Bullion coins have a total of 160 serrations while proof coins have 220.
Krugerrands are most actively sold on the secondary market, and thousands of coins change hands every day. Most orders contain a mix of differently dated coins, with some tubes containing coins dated the same year. Some investors are surprised to find out that the coins they bought bear a date that is different from the current year. This testifies to the duration of the coin as a market item. Investors buy Krugerrands to diversify their investment portfolio or as collectibles and to date, over 54 million such coins have been circulated around the globe.
Krugerrands contain 1/10, 1/4, 1/2 and 1 oz of pure gold, and their value can be determined based on the internationally quoted price of gold. Gold Krugerrands are also easy to store and transport. Because the coin is internationally recognized, selling and buying gold coins happens quite easily. Due to the fact that Gold Krugerrands are legal tender coins, they are not melted down or assayed after resale, which happens with some gold bars
Copyright © SilverAndGold.biz 2015 All rights reserved.| Privacy | About | Contact