The Gold Krugerrand as the first form of gold coin investment
The Krugerrand was conceived and created in 1957 as a legal tender 22-carat gold coin that could be affordable to all savers and private investors, to promote the gold in which South Africa was and is rich and for which it has been appreciated for centuries.
It was the first coin to contain 1 ounce of gold, and was initially offered for sale at a lower price than the current value of gold. The sale at a low price was part of a very specific marketing strategy, especially vis-à-vis Europe and America: in the United States, the Krugerrand allowed citizens to own gold legally as it was legal tender, while it was still forbidden to own gold in bullion form.
The history and characteristics of the Kruggerand coins
The 1oz Krugerrand gold coin measures 32.77 mm in diameter and 2.84 mm in thickness; it weighs 1.0909 ounces (33.93 g) and is minted from the same 22-carat gold alloy, with a purity of 91.67%, traditionally used for the Gold Pound. For many experts, its yellow-orange colour, resulting from the amount of copper used in the alloy, makes it unique and particularly fascinating.
The name of this particular coin comes from the portrait on the obverse of the coin of Paul Kruger, President of the Republic of the Transvaal in the late 19th century, and the 'rand' name of the South African currency, created from the original die used in 1892 for Krueger's half-crown coin. Along with the face value, the name of the state 'Suid-Afrika/South Africa' in Afrikaans and English is also given.
On the reverse is an image of an antelope (springbok), one of South Africa's national symbols designed and engraved by Coert Steynberg, a famous South African sculptor, for the 5-shilling coins. The reverse of the coin also bears the name of the coin, the year of minting and the words "FYNGOUD" and "FINE GOLD".
Thanks to an aggressive circulation campaign, the Krugerrand came to cover almost the entire global gold coin market in the 1980s, and smaller denominations of ½, ¼ and 1/10 ounce were put on the market alongside the 1oz version, making the Krugerrand even more attractive to small savers. The opening up of the sale of gold coins by other mints around the world was not enough to tarnish the Krugerrand's reputation. The abolition of apartheid and the election of Nelson Mandela to the presidency of South Africa made it even more important and significant on the international markets.
The Krugerrand is still one of the most traded coins today with more than 46 million pieces in circulation, equivalent to an impressive 1420 tonnes of gold.
Why buy a Kruggerand gold bullion coin?
Krugerrand gold bullion coins have characteristics that make them valuable to enthusiasts and extremely attractive to gold investors.
- They are investment gold coins and as such, as well as being VAT-free, they are a smart way to shelter your savings in a safe haven asset.
- They have a pure gold content of 91.67/1000, or 22 carats.
- Their design is unique and unmistakable, which makes them extremely difficult to counterfeit and consequently particularly easy to recognise, buy and sell.
- Krugerrands are very interesting coins from a private investment history perspective.
- Shipping is secure, confidential and insured.
The South African Mint's guarantee for the purchase of Krugerrand gold coins
The South African Mint is a private institution established in 1988 following the liberalisation of state activities and is wholly owned by the SA Reserve Bank. The South African Mint employs high-profile craftsmen whose work is controlled by a team of managers and artisans who manage the entire production flow.
All the gold used to produce South Africa's legal tender gold coins comes from the Rand Refinery (Pty) Limited, the official supplier of investment grade Krugerrands to primary distributors, both locally and internationally. The Rand Refinery is the world's largest and most important precious metal smelter and refinery, having refined over the years a third of the gold mined worldwide since the dawn of human history.
The craftsmen of the South African Mint combine their knowledge with the high technological standards that characterise the entire production. The uniqueness of the gold bullion coins produced here stems from the fact that while circulation coins are produced by highly automated, high-speed systems, the minting of investment coins takes time and slow, precise work. From the refining of the gold to the creation of the dies, from the production of the blanks to the striking of the coins, the minting process at Krugerrand aspires to achieve and exceed the standards of perfection we expect for the finest numismatic collectors' pieces.
Although the art of forgers is increasingly refined, forging a gold Krugerrand is an extremely complex job, both because of the quality of the raw material and the intrinsic characteristics of the coin.
Gifting a gold coin: the South African Krugerrand
If you want to make a gift of great material and cultural value, giving a gold coin is by far the most appropriate choice. It is a very precious gift that, unlike jewellery that loses its value through use, retains its value over time in terms of the price of the physical gold it contains and in fact represents a reserve of cash to be used in case of need.
Also not to be underestimated is the convenience of buying the coin, which is exempt from VAT as it is investment gold. Physical gold has always been the safe haven asset par excellence, its value historically increasing steadily and regularly.
Of all the historical gold coins, from Gold Pounds to Marengos, from collections such as Queen's Beasts to Australian Lunar series, gold Krugerrands remain a safe investment with a truly important story to tell and pass on.
How to resell your Krugerrand coins
You can disinvest your gold Krugerrands at any time.
Orovilla buys investment gold coins: all common gold coins, coin collections and rare and collector gold coins. At the time of purchase we appraise the coins, check them carefully for gold content, authenticity and condition.
The possibility of selling physical gold in any form and state of preservation, at any time and place, is its advantage over other forms of investment.