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The 1 oz South African Gold Krugerrand Coin is the OG of sovereign gold bullion coins. South Africa first produced this iconic coin in 1967, and it has remained one of the most prestigious bullion coins in the world ever since. 

1 oz South African Gold Krugerrand Coin

The basis for the value of a Krugerrand is the same as it is for other gold pieces. The spot price of gold, while technically defined as the value of gold futures contracts soonest to expire, serves as the de facto price for a troy ounce of gold.

On top of the spot price, you will also have to pay a small premium to purchase a 1 oz South African Gold Krugerrand. The premium is the amount each dealer charges for its efforts. The premium also reflects the overall prestige and liquidity that the coin offers to investors.

The premium for a Krugerrand can range as high as 5.5% over the spot price. For the most part, though, you’ll pay roughly 3% extra to buy one. 

This range of premiums places the Krugerrand alongside many of the world’s bullion coins in terms of pricing. However, the American bullion coins - the Gold Eagle and Gold Buffalo - tend to command higher premiums than the rest of the world’s coins, particularly among US investors.

Find the Lowest Price on 1 oz South African Gold Krugerrand

The good news is that there are some strategies you can employ that will help you stay toward the lower band of the Krugerrand’s premiums. 

The first thing to do is make sure that you aren’t trying to buy proof or uncirculated Krugerrands. These coins are specially designed as collectors’ items and are subject to rigorous production and handling standards. Bullion coins don’t have the same level of care, and thus, do not bear the same amount of premium.

Once you’ve filtered down to the bullion-grade coins, you can engage the second strategy to keep the premium as low as possible. If you can accept a Krugerrand from a random year, rather than a specific one, then you might realize some savings. 

Specificity is important, especially for investors attempting to assemble a full set of coins. Thus, it is cheaper to buy a 1 oz South African Gold Krugerrand without specifying its year of mintage.

Finally, as with many items, it is cheaper to buy in bulk. Though the overall price for a plastic tube of 10 Krugerrands is much higher than buying a single coin, the per-coin amount is lower. So, if you are planning on buying several Krugerrands anyway, it’s best if you do it all at the same time.

Description

South Africa made history when it introduced the 22-karat Krugerrand to the world in 1967. At the time, it was not possible to buy a sovereign bullion coin as a member of the public. 

The designs on the obverse and reverse of the coin are both simple and emblematic to the country itself. The obverse features a left-facing portrait of Paul Kruger, a former president of South Africa. 

He is also the namesake of the coin, which is merely a combination of his last name and the currency of South Africa, the rand. The edge of the obverse also contains both the English and Afrikaans names for the country - South Africa and Suid-Afrika.

The reverse features an image of a springbok antelope. This animal is a national symbol for the nation of South Africa, much like the bald eagle, and it is fittingly on the Krugerrand.

One interesting aspect of the Krugerrand is its purity. Unlike many more recent bullion coins, which sport purities of .9999, the Krugerrand is minted in an alloy with only 91.67% gold. 

This percentage is important because it also informed the US Mint when it was producing its first bullion coin, the American Gold Eagle. To this day, the original bullion coin of the US is created in 22-karat, rather than 24-karat, gold.

We cannot discuss the history of the Krugerrand without mentioning its indelible connection to the apartheid movement in South Africa. The systematic racism of South Africa existed between 1948 and 1994, and the debut of the Krugerrand in 1967 began to breed a growing resentment from other sovereign nations.

As a result, Krugerrands were banned from import in several prominent countries, including the United States, Canada, and Australia. The introduction of competing bullion coins was certainly an economic move by these countries, but it was also meant to send a message about the countries’ distaste for apartheid.

Since the end of apartheid in 1994, all the bans on Krugerrands have been lifted by these countries. However, the history of this coin is certainly more complicated than the rest of the bullion coin group.

Coin Highlights

If you want to get a quick idea about what you’re getting with a 1 oz South African Krugerrand, consult the list of highlights below:

•  1 troy ounce of gold.
• .9167 purity level, or 22-karat gold.
• Obverse features former president of South Africa, Paul Kruger, and both the English and Afrikaans name (“Suid-Afrika”) of the country are around the edge.
• Reverse features a springbok antelope, a national symbol of South Africa.
• The original gold bullion coin made available to the public.
• At one time, represented 90% of the global coin market.
• Banned in several countries for many years due to South African apartheid policies.

Fractional Coins

Now, Krugerrands are undoubtedly expensive, no matter what strategies you use to reduce the premium on them. With the spot price of gold pushing the price into thousands of dollars, buying a 1 oz South African Krugerrand may not be an option for you.

That’s okay. As is the case with several other sovereign bullion coins, the Krugerrand is available using fractional ounces of gold, rather than using a full troy ounce.

There are three fractional Krugerrand denominations available. You can buy one in the 1/10 oz, ¼ oz, and ½ oz sizes. Each coin has the same 22-karat composition as its big brother.

These versions are quite popular, as they offer a much easier entry point than the 1 oz Krugerrand does. Unsurprisingly, the 1/10 oz coin is both the least expensive and most popular of the fractionals.

However, understand that there are additional production costs associated with producing these smaller coins. Those costs are then passed along to the consumer. 

So, in terms of premium and cost-effectiveness, fractional coins are more expensive than the bigger coins. Bear that in mind if you are trying to begin a gold coin collection.

Specifications