South Africa’s gold coin, the Krugerrand, was first introduced back in 1967 as a way to help the market for gold in South Africa. The coin was an instant success and by the time 1980 rolled around it was responsible for about 90 percent of the market for coins. Throughout the 70s and 80s, a few countries prohibited importing this coin because it was affiliated with the government in South Africa. That same apartheid government is no longer in existence. Collectors still value the Krugerrand as a popular choice in coins to add to their collection.
When the coin was introduced in 1967, it was brought on to be a method for private individuals to own gold. Even though it was quite unusual for bullion coins, the Krugerrand was awarded the status of legal tender. Due to this change, it was produced in a durable alloy made of a copper-gold mixture. Regardless of the coin gaining the status of legal tender, the economic sanctions imposed upon this coin made it illegal for importation in many Western countries throughout the 70s and 80s. All of these sanctions ceased to exist once the South African government abolished the apartheid in 1994.
Once 1980 rolled around, the Krugerrand was 90 percent of the global market for coins. It was during that same year that South Africa decided to introduce three additional coins weighing in at a half-ounce, quarter-ounce and tenth-ounce of gold. As of 2008, there were enough Krugerrand coins sold to account for 46 million ounces in gold.
During the bull market in the 70s, the Krugerrand spared to number one on the market for those searching for a solid gold investment around the world. From 1974 to 1985, an estimated 22 million of these coins were shipped into the US alone. The alarming success of the Krugerrand helped to encourage other countries to issue their own gold coins, which included that of the 1979 Canadian Gold Maple Leaf, the 1981 Australian Nugget, the 1982 Chinese Gold Panda, the 1986 American Gold Eagle and the 1987 British Britannia.
Numerous private mints attempted to make money on the Krugerrand’s popularity by minting silver and gold bullion rounds similar to the Krugerrand. Rounds featured a springbok antelope and Paul Kruger, with some of those copying the original Krugerrand’s design, although the inscriptions seem to have been altered. The South African Mint does not offer these rounds, which makes them unofficial. Since they do not have a legal tender, they cannot be named a coin.
Physical Characteristics of the Krugerrand
Krugerrand coins are 32.77 mm in diameter and only 2.84 mm in thickness. The actual weight of the coin is less than 34 grams. This coin is minted with a gold alloy that is almost 92 percent pure, which equates to around 22 karats. As a whole, the coin contains around one troy ounce of gold. Eight percent of the coins weight comes from copper. When the copper is combined with the gold, it helps to provide the coin with an orange-like appearance, rather than that of the silver-alloyed coins. Copper-based coins are that much more durable and harder, so they are capable of resisting dents and scratches more than their counterparts are.
Otto Schultz, the designer of the Krugerrand, provides the obverse side of the coin with the face of the political leader, Paul Kruger. He was a president who served for four-terms for the Republic of South Africa. On the reverse, there is a springbok, which is one of South Africa’s national symbols. Coert Steynberg was the designer of the image, and it was used on the reverse of the five-shilling coin that South Africa had earlier. South Africa is inscribed English and Afrikaans on the gold coin. As of September of 1980, the Krugerrand was available in three varying sizes of pure gold. Rand Refinery Limited in Germiston owns the trademark of the word Krugerrand.
Purchasing the Krugerrand
Since the Krugerrand is so popular in nature, many investors and collectors have been flocking to to purchase of this amazing piece throughout the last decades. The hardest part when it comes to purchasing a gold coin it to ensure it comes from a reputable source. When you decide to spend an ample amount of money on a gold coin, the last thing you want is to be ripped off by someone who does not know what he or she are selling you in the first place. In order to ensure you are getting the absolute best in the industry, you can purchase your Krugerrand from GovMint.com or GoldSilver.com to ensure you are receiving the best there is to offer.
Don’t waste your time purchasing from a retailer who cannot provide you with what you need for a rare coin purchase. It is always best to perform your homework beforehand and make sure you are dealing with someone who knows what coin collecting is all about. Bringing home a piece of history should be an easy and effortless experience, which is what the staff at GovMint.com and GoldSilver.com makes sure to provide you with every step of the way. Pick up your coin today and bring home a piece of history that will enliven and enrich your financial portfolio for years to come.