Krugerrand Gold Coin Prices and Values
The South African Krugerrand gold coin is a very popular gold bullion coin among investors. The Krugerrand has a long and rich history, making it a very desirable coin for investors and collectors alike. The Krugerrand has been minted since July 3, 1967. The coin was minted to help market South African gold at the time and is made by the Rand Refinery and the South African Mint.
The Krugerrand gets its name from a combination of former South African President Paul Kruger and the rand, the country’s currency. A portrait of Paul Kruger is featured on the coin’s obverse, while the reverse of the coin features a pronking springbok, the country’s national animal.
By the early 1980s, the gold Krugerrand was the top-selling gold coin in the world. It accounted for more than 90% of the global gold coin market and was a favorite among investors. The 1980s and 1990s saw the Krugerrand decline in popularity. The coin became associated with the very unpopular apartheid government of South Africa, and some nations made it illegal to import. The United States banned the import of Krugerrands in 1985. Before that, the U.S. had seen some $600 million of Krugerrands marketed in the U.S. just the year before. The majority of sanctions affecting the Krugerrand were lifted in 1991 when the South African Government took steps to end its apartheid policies.
Since it was first minted in 1967, over 50 million ounces of the Krugerrand have been sold.
Best Places To Buy South African Krugerrands Online
When it comes to buying Krugerrands, investors have numerous options on where to purchase. They first must decide whether to purchase their coins online or in a local coin or bullion shop. The majority of investors will find, however, that online precious metals dealers have a much wider selection and better
prices compared to physical coin or bullion shops. This makes complete sense, too, as online dealers do not have much of the overhead that a physical business does. Expenses such as rent, mortgage, utilities, and more can all be saved by online dealers. These online dealers can then pass those savings on to their customers in the form of lower dealer premiums.
If you have decided to purchase your Krugerrands from an online dealer, you then need to decide which dealer deserves your business. There are many online metals dealers available today, and most of them offer highly competitive pricing. When starting to look, you may want to begin by exploring some of the larger dealers out there.
JM Bullion may be a great starting point. JMB offers Krugerrands in a variety of weights and both bullion as well as proof versions. JMB has been in business for over a decade now and offers free shipping on orders over $199. With thousands of positive customer reviews online, going with JM Bullion may be a great choice for your Krugerrand purchase.
Provident Metals is another established online metals dealer that may provide good value. Provident has a large selection of gold Krugerrands available in both gold and silver. Like JMB, they also offer free shipping for orders exceeding $199. Provident does not stop their service just selling coins. They also offer a wide range of accessories and protective devices so you can handle your metals correctly while keeping them protected and their investment value intact.
Silver.com is another potentially great choice for buying Krugerrands. Their selection may be a little more limited, but they do offer both gold and silver Krugerrands in bullion and proof forms. Silver.com also provides free shipping on orders over $199 and has many customer reviews posted online that you can review before buying. The company also offers a variety of payment methods, including checks, ACH, bank wire, crypto, and credit/debit cards.
BGASC may also offer a good solution for buying Krugerrands. This firm has a much smaller selection compared to the firms previously listed. They do sell both gold and silver Krugerrands, however, and may also offer proof Krugerrands for sale. They have many positive customer reviews as well and also offer free shipping on orders over $199.
South African Krugerrand Values
The South African Krugerrand derives its value from the gold contained within the coin. Krugerrands are bullion coins, and therefore have little if any collectibility premium. That being said, some Krugerrands, especially the more aged variety, may have some value over and above the gold content value. These values are not likely to be anything major, and the majority of a Krugerrand’s value will always be from the gold contained within it.
Unique Qualities of South African Gold Krugerrand's
The South African Krugerrand has some unique features that make it attractive. The coin was wildly popular in the 1970s and early 80s. It may well have been the deciding factor for Canada to start minting its Gold Maple Leaf Coin, and for other nations to do the same such as Australia, the U.S., and Great Britain.
No other gold bullion coin has been desired and then dumped as much as the Krugerrand. The coin became highly tied to the policies of its nation, and in doing so it became increasingly difficult to sell in large quantities. No other gold bullion coin has had the success and the controversy that the Krugerrand has.
The composition of the gold Krugerrand is even a bit unusual. The coin is made with one troy ounce of 22-karat gold and a fractional ounce of copper alloy. The use of copper helps protect the coin from scratching and surface damage while also giving it an orange tint. The use of copper is referred to as “crown” gold because it was widely used by English gold sovereigns.
South African Gold Krugerrand Denominations
The Krugerrand was originally minted in only a one-ounce weight. Due to the coin’s popularity, however, the mint eventually saw fit to introduce three other weights. Krugerrands are now available in one-ounce, ½-ounce, ¼ ounce, and 1/10-ounce weights. The Krugerrand has no face value but is considered good, legal tender in South Africa.
South African Krugerrand FAQs
Is the South African Krugerrand considered a numismatic or collectible coin?
The Krugerrand is considered to be a bullion coin, meaning most of its value is derived from the gold content within it.
Are South African Krugerrand coins more valuable than other bullion coins?
Ounce for ounce, Krugerrands can sometimes be valued at a higher level compared to other bullion coins. Why this may be is anyone’s guess, but the age and previous popularity of the Krugerrand may have a lot to do with it.
Why were South African Krugerrand coins so popular in the 1970s and 1980s?
The Krugerrand was really the first sovereign gold coin introduced to the world. The Krugerrand was made to provide people with access to South African gold and it did an amazing job of doing so.