If you are interested in unique coins that hold historical value and cultural significance, alongside representing a special financial turning point in history, then South Africa has one such coin that every collector should seek out and keep in their figurative back pocket. That coin is the gold South African Krugerrand coin.
What Are Gold Krugerrands?
Gold Krugerrands are a coin that is minted with the national symbol of South Africa, the Springbok, in South Africa. Krugerrands were introduced back in 1967 and today remain incredibly popular not just in South Africa but all over the world.
The South African gold Krugerrand is one of the most popular gold coins ever to be minted because at the time it was released it was the first modern bullion gold coin and became a symbol of prestige and wealth on an international level.
Where Does the Name Krugerrand Come From?
The name for the gold Krugerrand coin comes from a combination of the local currency, which is called the rand, and the last name of the first president Paul Kruger. They are also called this in honor of the location where gold was first discovered in South Africa in 1886, called Witwatersrand.
Gold Krugerrand History
As mentioned, the gold Krugerrand became the most famous name among gold coins because of its modern design and iconic release. It has no face denomination because the value of the coin was linked to the gold spot price. This was the only gold bullion coin that was available to international markets, which added to its importance. It is for this reason that Krugerrands were essentially a fast and simple way to spell out wealth.
Originally, it was mass-produced to provide private ownership for gold in the form of legal tender currency. Coins were made with a copper-gold alloy so that they would be more durable. Later, these coins were released in smaller sizes so that they would be more readily available to a larger percentage of the population who wanted to invest in smaller sized gold coins. It was the success of the Krugerrand gold coins that actually lead other mints around the world to issue gold bullion coins including the gold American Eagle coins and gold Canadian Maple Leaf coins.
Gold Krugerrand Production
The production of these coins and other gold coins from the area changed Africa instantaneously. In fact, 75% of the world's gold was produced near the end of the 1960s and the beginning of the 1970s in South Africa.
The Krugerrand gold coin was unique far more as it was legal tender which meant that foreigners could buy them at a time when it was otherwise illegal to purchase foreign gold bars. At that time, if gold bars were not produced in your country, you could not buy them. The gold coins now have their weight stamped onto them rather than their face value to emphasize that they are tied to the spot price of gold which makes it easier to trade and account for the value.
Gold Krugerrand Design
The name Krugerrand refers to the first and only president of South Africa at that time, Paul Kruger. His face is on the obverse while the Springbok is on the reverse.
Why Are Gold Krugerrands Popular?
Today, the South African gold Krugerrand remains incredibly popular due to its potential as an investment tool. Many people invest in gold coins to hedge their losses in the event that an economic downturn negatively influences the performance of all other investment tools. There is a high demand for the Krugerrand especially those that are part of a collector series.
This increase in demand is due to the historical importance of the coin and the fact that many collectors seek out at least one of these coins to add to their collection simply because of the status symbol it once held and the status symbol it continues to hold. A symbol that other coins simply do not have. The investment in gold coins is, of course, a sound one because of the protection it provides especially given the fact that changes to the economy or other indexes will not influence the spot price for precious metals directly.
Gold Krugerrand Pricing
Gold Krugerrand prices do fluctuate but the popularity of the coins has continued to increase. We sell Krugerrand gold bullion coins in current and backdated issues. You can get your hands on whatever coins you want for your investment purposes.
About the South African Mint
The South African mint has been in operation since 1890. Headquartered out of Centurion, it mints all of its coins in South Africa on behalf of the Reserve Bank in South Africa.