Krugerrand

Krugerrand, the most popular gold bullion coin

The gold Krugerrand coins are one of the most popular golden coins in the World. It is also known as the Golden Rand and is the most widely held and most actively traded gold bullion coin. These days, around 48 million oz of Krugerrands are distributed all of the world. It is the most widely accepted and commonly traded gold bullion coin. There are more Krugerrands available than any other gold coin in circulation.

History of the Krugerrand

The first Krugerrand was struck on the third of July in 1967 in commissioned by the South African government. Ever since, the Krugerrand has been a legal tender all over the globe. This South African golden coin has been used to promote the gold industry from this Southern country and has found its way into international markets profoundly.The Krugerrand gold coin has the status as legal tender and could theoretically by used as a currency for regular payments. In practice this never happens, however it is commonly used as an investment currency. The golden rand was the first coin even to be struck for this purpose. It was also the first coin to contain 1 troy ounce of gold.

During the 1970s and the 1980s, the Krugerrand was banned and restricted by many Western nations because of the apartheid in South Africa. When the apartheid was abandoned in 1994 the coin quickly gained popularity again. Due to the success of the coin, other gold producing countries quickly started their own gold coin lines. Over the years the gold Krugerrand coins have lost some ground especially to the Canadian Maple leaf and the Australian nugget. These coins are all 24 karat pure gold and thus more interesting for investors. But also the Chinese Panda (24 karat), the American Eagle (22 karat) and the Britannia coin (22 karat until 2012, nowadays 24 karat gold) are popular gold bullion coins.

Krugerrand properties

The original Krugerrand measures 32.77mm in diameter and is 2.84mm thick. The actual weight of the golden coin is 1.0909 troy ounces which is equivalent to 33.93 grams. The gold alloy that is used for minting the coin comes from the Rand Refinery in South Africa and is 22 karat and thus 91.67% pure gold. The remaining percentage consists of copper alloy. This was added to make sure the coin was more resilient against scratches and dents (remember, it was introduced as a legal tender currency). This means the Krugerrand contains one troy ounce of gold (equivalent to 31.1035 grams) and 2.826 grams of copper.

The latter thus makes up for 8.33% of the coin. The copper alloy also gives the Krugerrand its distinctive reddish/orange appearance. The obverse side portrays Paul Kruger, the last South African president of Transvaal and a nature conservationist.

The famous Kruger Park is also named after him. The portrait on the Krugerrand was designed by Otto Schultz. On the obverse side of the Krugerrand a springbok is displayed. This animal is one of the national symbols of South Africa and was designed by Coert Steynberg. Previously, the same design was used on the South African five shilling coin. The rand is the official South African monetary currency. Thus the name ‘Krugerrand’ is a mix of the two, clearly stating its origin. The Rand Refinery Limited holds the trademark for the word “Krugerrand". On the coin itself, the words ‘South Africa’ are inscribed in both the South African language and in English.

Different sizes now available

From the 1980’s, the South Africa Mint started distribution various sizes of the 22 karat gold coin. The sizes available are 1/10 oz, ¼ oz and ½ oz of pure gold.