Specification
| Gold (oz): |
1.0 |
|
Fineness (carat): |
22 |
| Pure (g): |
31.103 |
|
Diameter (mm): |
32.77 |
| Standard (g): |
33.930 |
|
Thickness (mm): |
2.84 |
The Krugerrand has a milled edge. The number of serrations used on each size coin varies as well as on each finish. The 1oz Krugerrand has 160 serrations, with some versions having 188 and some 220. View detailed technical specifications
History
South Africa was the largest gold mining nation during the mid 20th century, contributing almost 50% to the annual global mine supply. To more easily sell this abundant supply of gold, the South African gold mining industry came up with the idea to develop a circulating gold bullion coin that would exclusively contain gold from the South African mines. The idea was approved by the South African Central Bank which authorized the creation of the legal tender Krugerrand gold coin. The Krugerrand gold coin was struck for the first time in the early 1970s by the South African Mint and would prove to be the most successful gold bullion coin ever to be issued by the Republic of South Africa.
The Krugerrand does not depict any face value on either side of the coin. Instead its value is determined by its fine gold content, relative with the prevailing market price of gold. The world renowned gold coin was created by the South African gold-mining industry.
The obverse of the Krugerrand gold coin depicts Stephanus Johannes Paulus Kruger, former president of the Transvaal Republic. Kruger would rise to international fame as the head of the Boer resistance against British forces in the late 19th century. The Boers, predominately Dutch-speaking settlers from Europe who lived in South Africa, tired of being ruled by the British Empire, decided to create their own independent country under the name Transvaal. Paulus Kruger, who was also a descendant of the Boers, would become a leading figure in the Boer quest to become a self-governed nation inside the territories of the British controlled South Africa.
Kruger came from a simple background; born on a farm in 1825 in South Africa he lacked any formal education, although his proficiency in hunting and horse riding would prove to be of good use during his military service in the Transvaal army. He advanced fairly quickly in the army ranks and by his early 40s was already promoted to Commandant-General of the Transvaal forces. Kruger’s skills went beyond being a soldier, since he was a fine diplomat as well. In 1877, when the Boers clashed for the first time against the British, Kruger through diplomatic means secured a victory for the Boers. This boosted his popularity, and as a result, he was elected president of the Transvaal Republic in the general elections that followed three years later.
The South African Krugerrand contains gold from the richest gold deposit on earth
Unfortunately, the peace between the Boers and British did not last long, as large gold deposits were found inside the territories of the Transvaal Republic in an area called Witwatersrand. Even to this date, the Witwatersrand region is home to some of the richest gold deposits on earth; it is believed that almost 45% of all the gold ever mined on earth has come from this rich South African gold region. The British, determined to secure control over these vast riches, sent a huge force, by some estimates over 400,000 people strong, to combat the Boers. The Boers, greatly outnumbered by the British force, lost the war, and Transvaal was absorbed back into the British Empire in 1902. President Kruger who managed to escape to Europe never set foot again in Africa and he died in exile in Switzerland on 14 July 1904.
In modern coin history, the gold one ounce Krugerrand is the most famous of all 1oz gold bullion coins. It was launched by South Africa in 1967 and by 1980 the gold Krugerrand accounted for over 90% of the global gold coin market. US sanctions against the SA government in the mid to late 1980s did dampen the trade in Krugerrands, but restrictions were lifted on them in 1991.
Obverse
Portrait of Afrikaner statesman Paul (Paulus) Kruger, fifth President of the South African Republic (ZAR, Zuid Afrikaansche Republiek). Designed by the German engraver, Otto Schultz. This engraving first appeared on ZAR coinage in 1892. Legend: 'SUID-AFRIKA · SOUTH AFRICA'.
Reverse
A pronking springbok, the national animal of South Africa, graces the reverse. This design first appeared in 1947 on the South African Crown coin and was designed by sculptor Coert Steynberg. Legend: 'KRUGERRAND FYNGOUD 1OZ FINE GOLD', with the date either side of the springbok.
Presentation
Issued loose in bullion condition. These 1oz Krugerrands may show some minor blemishes such as edge knocks or scratches owing to mass production methods. This is perfectly normal for bullion coins and will not affect the precious metal value of them. Images provided of this product are stock photos and the coins you receive will be from the same issue, having the exact same specifications.
Buying Gold Krugerrands
Krugerrands are the official gold bullion coins of South Africa and are produced by the South African Mint in conjunction with the Rand Refinery. They are very popular with bullion collectors, being traded at price levels very closely associated with the live gold price. The more recent coins are noted for their strong rose gold hue, which is caused by the exclusive use of copper in the alloy. Earlier editions may appear more yellow due to silver being present. Each Krugerrand is manufactured using crown gold, which is 91.67% fine gold (22 carat). It's certainly not the most attractive coin ever produced, however this alloy gives the coins unparalleled durability compared to 'pure' gold bullion coins (0.999+ fine), making them ideal for investment.
Although intended as an investment article, there is a collector's market for dated Krugerrands. Dates between 1970 and 1991 tend to be relatively straightforward to find, with dates outside that range being more difficult to source. Mintage figures in 1967 was just 40,000 coins but by 1978 had reached more than six million coins. Figures have most likely been lower in recent years as many other countries are now competing in the one-ounce gold coin market, although rather frustratingly there are no reliable figures.
Top Reasons to Buy Gold Krugerrands
Gold Krugerrands can be a great investment! Purchasing gold Krugers is a popular way to acquire the precious metal and there's a very liquid market in them worldwide. We've outlined some reasons why you should consider buying them:
Popularity - The 1oz Krugerrand is world famous and bought and sold everywhere.
Cost - The 1oz gold Krugerrand is priced very closely to the gold spot price.
Entry Level - Affordable entry into gold bullion investment for many people.
Authenticity - The 1oz gold Krugerrand is an official legal tender coin of South Africa.
Physical Asset - A 1oz gold Krugerrand coin is a physical, tangible asset. You can touch it, hold it, keep it wherever you like.
Liquid asset - If you do need the money, you can sell 1oz gold Krugerrand coins almost instantly, virtually anywhere in the world, often on the high street or by post.
There is a strong buyer market for gold coins.
1oz Gold Krugerrand Face Value
The Republic of South Africa is the southernmost country in Africa. The currency is the South African Rand. In 1961, South Africa replaced the Pound(GBP) system with the decimalised Rand(ZAR), with 100 cents making up one Rand (R1). In introducing the gold Krugerrand, the intention from the South African government was that these coins would be used as ordinary circulating coinage, hence the use of the 0.917 fine gold to manufacture them.
This didn't necessarily happen, but a law passed in 1989 gave the coins legal tender status in South Africa. Unusually for a legal currency coin, the face value of the Krugerrand was the melt value of the gold composed in it. So the spot price of gold per troy ounce was 35,000 Rand, then the face value of a 1oz gold Krugerrand would be R35,000. This is in contrast to nearly all other bullion coins produced by mints across the world, which have a nominal face value far lower than their precious metal melt value.
Conclusion
To this date, investors have bought some 48 million ounces of fine gold contained in over 60 million coins, establishing the Krugerrand as the most popular and actively traded gold coin in the 21st century. By taking possession of a Krugerrand gold coin, you gain an implicit guarantee of it being international accepted by bullion dealers, financial institutions and investors alike.
