What is a Krugerrand Gold Coin?

Krugerrand gold coin

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Are you looking to invest in gold? Well, with a Krugerrand gold coin, you can take your gold investment anywhere in the world and sell it for cash. 

What is a Krugerrand coin, you ask? It is one of the most sought-after coins in the world with the same worth as one ounce of gold.

A Krugerrand is immediately recognizable by investors and gold collectors and will always give you a return on your investment.

The United States government did not allow citizens to own gold bullion when South Africa first began issuing Krugerrands in the 1970s, but they did permit the ownership of foreign coins.

Many investors bought Krugerrands to get around this law and possess their own gold. As a result, the Krugerrand quickly gained popularity because it was gold that U.S. traders could buy and sell.

Krugerrand coins are not as popular as before, but they are still quite valuable and are an easily storable investment.

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What are Krugerrands?

Krugerrand coins are the most recognizable one-ounce gold bullion coins. They come from one of the largest gold mines in the world in South Africa.

The Rand Refinery, the world’s biggest metal refining site, created the first Krugerrand coin in 1967. The South African Krugerrand coin made it simple for anyone to invest in gold.

Countries have always accepted them as legal tender, so you can take this investment with you wherever you go and exchange it for cash almost anywhere in the world.

How Much is a Krugerrand Worth?

Krugerrands function the way gold does. They are worth the same amount as gold when you buy and trade them.

You can check the price of gold fairly easily. While gold is a good investment because the price stays relatively constant, the market does fluctuate at times.

Krugerrand coins typically maintain high averages very well, since they are basically pure gold. Like other gold items, however, the amount will vary depending on the market.

Krugerrand Gold Coins

Now that you know what Krugerrand coins are and what they may be worth, let’s discuss their origins and what makes them unique.

What are Krugerrand gold coins?

Krugerrand gold coins have some of the purest metal content, so their value is fairly close to what an ounce of gold costs.

You can tell how much gold you have simply by counting the number of Krugerrands.

History of the coins in South Africa

Due to South Africa’s Apartheid policy, importing Krugerrands was illegal in America. Although there were no laws prohibiting the collection of foreign coins, Americans could still buy Krugerrands legally.

Though the US lifted the import ban in the 1980s, many countries had already begun following suit and creating their own gold bullion coins.

South Africa and other places even began minting coins worth ½, ¼, and ⅛ the amount of gold, which you can also purchase. 

South Africa has produced and circulated more gold Krugerrands than any other gold bullion coin. The Krugerrand is a great way to keep track of the price of gold globally because of its popularity. 

To this day, the Krugerrand is the most popular gold bullion, and people still actively trade them.  Even other coins like the American Gold Eagle and Canadian Maple Leaf are not as popular as the Krugerrand coin.

The Size of the Krugerrand coin

Each Krugerrand coin has just 33.93 grams of 22-karat gold. As a result, collecting and storing large numbers of Krugerrands is simpler than doing so with traditional gold bars.

Pros and Cons

There are many benefits to having a Krugerrand coin. They are a great way to invest in gold, regardless of your experience level.

Purchasing Krugerrand gold coins is a hassle-free purchase, made to be used as currency. Krugerrands require less upkeep than other gold investment properties do and are high in value.

These coins are simple to store and easily portable. One ounce of Krugerrand gold coins, or even increments of an ounce, can be purchased or sold.

As a result, buying Krugerrands becomes more accessible and flexible for investors. You can then quickly exchange your Krugerrands for cash as well.

Pros

  • More affordable to invest in gold
  • Created to be used as currency
  • High in value
  • Easy to store.
  • Simple to transport

However, much like anything, some cons come along with Krugerrand coins. For instance, when it comes to storage, even though it is easy to do so, it can be quite expensive. 

Owners of gold also have a lot of reasons to be concerned about theft. Thieves and con artists can steal even small amounts of Krugerrands if you do not store them properly.

Although gold is a fantastic way to safeguard your money from significant market fluctuations, it will not produce dividends or interest the same way other commodities do.

Gold will always be valuable, but investors value its stability factor more than its ability to prevent inflation.

Cons

  • Expensive to store
  • Vulnerable to theft

Are Krugerrands a Good Investment?

South African Krugerrand gold coins not only allow you to invest in gold, but they also come with benefits that other gold items do not.

These gold coins are high in value due to their rich history. Since their history is complicated, Krugerrand coins are particular favorites of collectors.

Many gold coins have historical worth along with their actual value, and collectors who are interested in coins like this will be willing to pay a high price to add these coins to their collection. 

If you are genuinely considering investing in gold, then the South African Krugerrand gold coin is the perfect way to go.

Krugerrands are a good investment, especially for inexperienced gold investors. If you’re looking to put money into gold, Krugerrands are a safe investment to make.

FAQs

Still have some questions about what a Krugerrand gold coin is? Check out this list of frequently asked questions.

Due to economic sanctions against South Africa because of its apartheid policy, the Krugerrand was an illegal import during the 1970s and 1980s.

The restriction has since been lifted with the abolition of Apartheid in 1994, making it possible to import Krugerrand coins.

The price of one gold Krugerrand is currently $1,846.60 per ounce. As the market price of gold changes, the price of the Krugerrand will as well, so make sure to check the prices before you invest.

Despite having a troy-ounce weight of 1.09, a Krugerrand coin contains one ounce of pure gold.

On one side of the Krugerrand gold coin is President Kruger, the President of the South African Republic from 1883 to 1900.

On the other side is the national symbol of South Africa, the antelope known as a springbok.

Many different gold dealers and coin merchants in America deal with gold Krugerrands.

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