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The 1/10 oz South African Krugerrand is the smallest available version of one of the world’s most famous bullion coins. The 1/10 oz coin, like all of the coins in the group, offers a coin minted in 22-karat gold, where 91.67% of its composition is pure gold.

1/10 oz South African Krugerrand Price

Like all gold coins, the 1/10 South African Krugerrand bases most of its value on the spot price of gold. Though its true definition is more technical, the spot price is the going rate for buying a troy ounce of gold.

It is not a static number. It is constantly in motion, so understand that any statements about the price of gold are only snapshots. 

As with any fractional coin, the spot price used for the 1/10 oz is a proportion of the main spot price, which is the given cost of a full ounce. Thus, this coin divides the spot by 10 to get started with its valuation.

However, it is extremely rare to find opportunities to buy coins at the spot price. Instead, you’ll find that every coin shop and precious metals dealer has attached an additional fee known as the premium. The premium is what you pay the dealer for the work that he or she does to bring the 1/10 oz Krugerrand to you.

In general, you’ll find the 1/10 oz Krugerrand has premiums ranging between 24% and 34% over the spot price. This range of premiums is a bit higher than average among 1/10 oz coins, but not so much that it should stop anyone from buying them.

The higher premiums might also indicate that it will be easier to sell your 1/10 oz Krugerrand(s) when you want to make some profit. The Krugerrand is a household name in many parts of the world, and there will never be a shortage of interested parties when you want to get some cash back.

Find the Lowest Price on 1/10 oz South African Krugerrand (200-300 words)

Fortunately, there are ways to keep the price on your 1/10 Krugerrand purchases on the low end of the spectrum. However, the first step you’ll have to take is to choose a precious metals dealer.

Now, we have our favorites, of course. We can fully support using any of the following websites for your gold and silver purchases:

• JM Bullion
• Silver.com
• BGASC.com
• Provident Metals

There are two elements to examine when you’re deciding on a precious metals dealer, be it one of the four above or a different one. For one thing, you should try to find the best deal that you can on the 1/10 oz Krugerrand. Unless there is a tremendously compelling reason, you should want to find a dealer with consistently low premiums.

At the same time, balance that desire against the possibility of taking a deal too good to be true. If you see an offer at or below the spot price, you should be extremely careful about proceeding.

More broadly, you need to prioritize doing your homework on your chosen precious metals outfit. They should have plenty of experience, excellent customer reviews, and a spotless reputation from independent agencies like the Better Business Bureau.

Once you finish the dealer selection, look at the selection of 1/10 oz Krugerrands, and keep in mind the following truths:

• Proofs and uncirculated coins are made with extra care, and come with extra cost.
• Some years are more expensive than others, so try to buy random year coins.
• Buying in bulk saves money, even though it’s more expensive upfront.

Description

South Africa made history in 1967 when it released the 1 oz Krugerrand. The 22-karat coin was the first mass-produced bullion coin made available to the public. 

However, the 1/10 oz denomination of the coin did not become part of the offering until 1980. At that time, South Africa owned 90% of the global gold market and sought to expand its horizons.

No other coin has been as politically charged, though. The Krugerrand came to be a tangible symbol of South Africa’s racist apartheid system. Thus, other countries - particularly in North America and western Europe - began to ban its import and sale. At the same time, many countries developed their own bullion coins, such as the American Gold Eagle, to compete directly with the Krugerrand.

Thankfully, apartheid came to an end in 1994, and the bans on Krugerrands soon followed. The South African coin series has never reclaimed its former glory, but remains an eminently-recognizable coin on the world stage.

Like all Krugerrands, the 1/10 oz coin features the visage of Paul Kruger on its obverse. The name of the coin itself is a portmanteau of Kruger’s name and the name of South Africa’s currency, the rand.

The reverse of the coin depicts a springbok antelope, an animal that is to South Africa what the bald eagle is to the United States. Its image places the deer-like creature in its natural habitat, the savanna.

Perhaps ironically, the coin named in part after South Africa’s currency does not have a face value on it. They are considered legal tender in South Africa but are not commonly used for everyday transactions.

Like all Krugerrands, the 1/10 oz coin is minted in 22-karat gold. 91.67% of the coin is fine gold, and the remainder is copper - giving the coin a slightly more orange appearance than many other gold bullion coins.

Coin Highlights

Here are a few basics about the 1/10 oz South African Krugerrand:

• 1/10 troy ounce of gold.
• .9167 purity.
• Released 13 years after debut of 1 oz Krugerrand.
• Obverse features Paul Kruger, an early leader in the South African struggle for independence.
• Reverse displays a springbok antelope, one of South Africa’s iconic fauna.
• No face value, though legal tender in South Africa.
• Subject to temporary bans in several countries due to government apartheid policy.

Buying Fractional Coins

The presence of a fraction in the coin’s title unsurprisingly means that the 1/10 oz Krugerrand is part of the group of coins known as the fractional coins. They are so named since their gold weights are all partial amounts of a troy ounce.

For investors working with a limited budget, 1/10 oz coins are extremely popular. On an absolute basis, they are usually the cheapest bullion coins that you can purchase.

However, bear in mind that their premium percentages are often significantly higher than those for the full-size coins. The additional prices are due to the increased production costs, as the South African Mint may have to fabricate new dies and perhaps purchase dedicated machines to produce the smaller-sized coins.

So, on a cost basis, it is always better to buy the biggest coin that you can. Don’t misunderstand, though - the higher premium doesn’t make the 1/10 oz Krugerrand a bad purchase. We just want you to be informed about all sides of the deal.

Specifications