WHAT IS 'Krugerrand Gold Coin'

The Krugerrand gold coin is a gold coin minted by the Republic of South Africa. Krugerrand gold coins contain exactly one troy ounce of gold. This coin was first minted in 1967 in order to stimulate the market for South African gold. It is considered legal tender within the country. 

BREAKING DOWN 'Krugerrand Gold Coin'

The Krugerrand is one of the most frequently traded gold coins in the world market. The coins bear the image of Paul Kruger, who was president of the South African Republic from 1883 to 1900. Kruger held office when one of the world’s most profitable mines, Durban Deep, was founded in 1896. He was also president during the Witwatersrand Gold Rush, which led to the establishment of Johannesburg, one of South Africa’s largest cities.

South Africa minted the coins to help sell the country’s gold to private owners. The country was the largest gold producer in the world in 1970, holding more than 75 percent of the world’s gold reserves. Through the 1970s, Krugerrand gold coins quickly became the leading choice for gold investors. By 1980, the Krugerrand overwhelmingly dominated other gold investments, accounting for 90 percent of the world’s gold-coin market.

In 2016, the nation’s gold output had dropped by 85 percent since 1980, and South Africa produced just 6 percent of the world’s gold.

The Krugerrand was the first gold-bullion coin that was tenderable at the market value of its face gold content. Because it was not supposed to be a replacement for the currency, it is considered to be a medal coin by definition.

Investing in Krugerrand Gold Coins

Krugerrands remain a popular investment for gold investors in part because of their value and small size, which makes for easy storage. Many gold investors consider this precious metal a safe investment that will retain its value even in an economic collapse. Owning a tangible asset appeals to some investors, who put greater trust in physical coins or bars than a security that exists only on paper.  

Investors continue to buy gold because of the proven longevity of its value. Some other popular gold bullion coins are the American Eagle, Canadian Maple Leaf and Chinese Gold Panda. In addition to the countries that produce these popular coins, Australia, Russia and Peru also rank among the top gold-mining countries in the world.

Investors interested in buying Krugerrand gold coins should have a secure place to store their investment. They should also be wary of scammers, seek a reputable gold dealer and brush up on their state’s tax laws, which could include a sales tax on gold.  

  1. Mint

    A mint is the primary producer of a country's coin currency and ...
  2. Gold Bull

    A gold bull is a trader or investor who trades with the anticipation ...
  3. Gold Standard

    The gold standard is a system in which a country's government ...
  4. Gold Reserve Act Of 1934

    The Gold Reserve Act of 1934 is an act that took away title to ...
  5. Gold IRA

    A Gold IRA is a retirement investment vehicle used by individuals ...
  6. World Gold Council - WGC

    The World Gold Council is a nonprofit association of gold producers, ...
Related Articles
  1. Insights

    Giant Gold Coin Stolen From German Museum

    The 221-pound coin would be worth close to $4.5 million at current gold prices.
  2. Investing

    The Better Inflation Hedge: Gold or Treasuries?

    Owning gold may not be the best option for hedging against inflation. What else, then? Try treasuries or gold ETFs.
  3. Trading

    History Of Coinage In The U.S.

    From the barter system to commemorative coins, we look at the history of U.S. money.
  4. Investing

    Top 5 Gold ETFs for 2018

    Gold ETFs offer a convenient way to take advantage of the volatility of the precious metals market.
  5. Investing

    Investing in Gold: Direct Vs. Professional Management (ABX, GG)

    Find out how you can access the gold market through common stock, futures contracts, and actively managed or passively managed ETFs and mutual funds.
  6. Investing

    Why the Price of Gold Is More Than Just Supply & Demand

    The price of gold is driven by multiple factors that work together in at times counterintuitive ways. Understanding the place of gold in a portfolio requires a look at history.
  7. Investing

    Why is Gold a Counter Cyclical Asset?

    Gold is widely considered a safe haven during market turbulence. History has proven gold performs counter cyclically to the state of the U.S. economy.
  8. Investing

    Why Gold Has Always Had Value

    Gold has an allure and a price tag, but with no real intrinsic value, why do we consider it so precious and valuable? Explore the answer.
  9. Investing

    Which Gold ETF Should You Own?

    Now may be a good time to get into gold ETFs. Here's how to do so, and which ETFs should be considered the best bet.
  10. Investing

    What Is Wrong With Gold?

    Despite its historic and symbolic appeal, this metal is simply a commodity. Here we explore its meaning as an investment.
  1. What does the grade of a gold mine refer to?

    Discover how gold mines are graded, how the World Gold Council defines a high-grade gold mine, and where the highest graded ... Read Answer >>
Trading Center