Initially introduced to the market at a time when American investors weren't allowed to own gold bullion, the gold South African Krugerrand's a testament to the power of creative problem-solving. The South African Mint introduced the coin to the market in 1967, and by 1980, it was the most commonly traded gold coin in the world. Although it did experience ups and downs due to the apartheid boycotts, the Krugerrand's popularity never completely waned and the coin has since come back stronger than ever.
What Types are Available?
In the broader sense, there are two types of Krugerrands that people buy: bullion coins and collector coins. Although you'd think that an "all Krugerrands are made equal" approach would be applicable here, collector coins aren't of much use to you if you're dealing in gold bullion.
How do you tell the difference between a collector Krugerrand and a bullion Krugerrand? It's easier than you might expect.
The first thing you look at is the asking price. A collector coin will often be priced higher than its bullion counterpart. The second thing to evaluate is the coin itself. Although coins may imitate the Krugerrand's style, there are a few questions you can ask yourself to differentiate the bullions from their counterparts.
Does it have the correct inscription? Did the South African Government or the South African Mint do the commissioning? Is this the correct size?
What Physical Properties Does the Gold South African Krugerrand Have?
In 1967, there was only one size of Krugerrand available on the gold coin market. It had a denomination of 1 oz., weighed in at 33.93 grams, and was never found with more than 160 reeded edges. Since then, 3 more sizes have been made available in the ½ oz., ¼ oz., and 1/10 oz. forms. These come with 185, 150, and 115 reeded edges, respectively.
Comprised of 91.67% 22 karat gold alloy and 8.33% copper, the proportions of a Krugerrand are consistent no matter how large or small the coin is.
Reasons to Invest
• Easy Storage: The copper alloy in the Krugerrand makes it scratch-resistant and durable.
• Reputation: These coins have been on the global gold coin market since 1967.
• Popularity: Since this is a regularly traded coin, finding reliable dealers and shopping around for lower prices is more of an option.
The only drawback to investing in the Gold Krugerrand coin is that it is not allowed by the IRS to be held in a gold IRA account.
The success of the gold South African Krugerrand ultimately encouraged other countries to get in on coin-commissioning action. At one point, commanding 90% of the gold coin market, the Krugerrand still continues to be a popular investment. You can't go wrong adding "the godfather of gold coins" to your portfolio.
What Types are Available?
In the broader sense, there are two types of Krugerrands that people buy: bullion coins and collector coins. Although you'd think that an "all Krugerrands are made equal" approach would be applicable here, collector coins aren't of much use to you if you're dealing in gold bullion.
How do you tell the difference between a collector Krugerrand and a bullion Krugerrand? It's easier than you might expect.
The first thing you look at is the asking price. A collector coin will often be priced higher than its bullion counterpart. The second thing to evaluate is the coin itself. Although coins may imitate the Krugerrand's style, there are a few questions you can ask yourself to differentiate the bullions from their counterparts.
Does it have the correct inscription? Did the South African Government or the South African Mint do the commissioning? Is this the correct size?
What Physical Properties Does the Gold South African Krugerrand Have?
In 1967, there was only one size of Krugerrand available on the gold coin market. It had a denomination of 1 oz., weighed in at 33.93 grams, and was never found with more than 160 reeded edges. Since then, 3 more sizes have been made available in the ½ oz., ¼ oz., and 1/10 oz. forms. These come with 185, 150, and 115 reeded edges, respectively.
Comprised of 91.67% 22 karat gold alloy and 8.33% copper, the proportions of a Krugerrand are consistent no matter how large or small the coin is.
Reasons to Invest
• Easy Storage: The copper alloy in the Krugerrand makes it scratch-resistant and durable.
• Reputation: These coins have been on the global gold coin market since 1967.
• Popularity: Since this is a regularly traded coin, finding reliable dealers and shopping around for lower prices is more of an option.
The only drawback to investing in the Gold Krugerrand coin is that it is not allowed by the IRS to be held in a gold IRA account.
The success of the gold South African Krugerrand ultimately encouraged other countries to get in on coin-commissioning action. At one point, commanding 90% of the gold coin market, the Krugerrand still continues to be a popular investment. You can't go wrong adding "the godfather of gold coins" to your portfolio.