From 1967 to today – Questions and answers about the Krugerrand

Krugerrand Questions and Answers

Krugerrand 1967 or how it all began

The Krugerrand is a South African coin first minted in July 1967 to help market South African gold and is produced by the Rand Refinery and the South African Mint (SA Mint) .

Where does the name “Krugerrand” come from?

The name is composed of Paul Kruger, the former president of the South African Republic (whose face is depicted on the obverse), and Rand, the South African monetary unit. The reverse of the Krugerrand features a leaping springbok, the national animal of South Africa.

Who was Paul Krüger?

Stephanus Johannes Paulus Kruger (10 October 1825 – 14 July 1904), also called Oom Paul or spelled Kruger, was a South African politician and President of the South African Republic from 1882 to 1902.

What was the mintage of Krugerrand gold coins in 1967 and later?

There were minted in 1967 40,000 bullion coins, also called bullion and 10,000 pieces in proof quality = PP/polished plate. A limited number of proof and proof-like coins were minted in 1967-1969, followed by the issuance of the standard one-ounce bullion coin for mass production. Smaller bullion coins containing 1/2 ounce, 1/4 ounce and 1/10 ounce of fine gold were first issued in 1980. Mass produced at the time, the Krugerrand was also fortunate to have no competition from 1970 until the introduction of the Canadian Maple Leaf gold coin in 1979.

At that time, some individual investors bought hundreds, sometimes thousands of 1 oz Krugerrands. In 1978 alone, more than 6 million coins (187 tons) were issued to meet global demand.

Sanction from the mid 80s

However, when sanctions were imposed on South Africa in the mid-1980s (until the early 1990s), few Krugerrand coins were exported over the next two decades. In some years, no Krugerrand gold coins were exported at all. During this time, the United States (1986), Australia (1987), the United Kingdom (1987), and Austria (1989) introduced their own gold coins in a 1 oz. denomination. size to the market and established them.

After the global financial crisis in 2008, there was a remarkable revival. Annual issuance began to rise, with the Krugerrand regaining its former status as the world’s best-selling gold bullion coin in Krugerrand – 2.2 million ounces were issued that year.

How much did a Krugerrand cost back then in 1967?

The average price of an ounce of gold on world markets in 1967 was the equivalent of $35.10. A 1 oz. Krugerrands had an average retail markup of 5%. Thus, taking into account the dollar-DM exchange rate at the time, a Krugerrand cost an average of 73.93 euros in 1967.

How were the very first Krugerrand gold coins delivered?

At the very beginning, 40,000 gold bullion coins were minted, but only the first ones were delivered or sold in an original “SA Mint paper bag“.

Krugerrand 1967
Krugerrand 1967

In what sizes and weights are the Krugerrand gold coins?

From 1967 to 1980, the Krugerrand was only available as a 1 ounce coin. Since 1980, there are also the denominations ½ ounce, ¼ ounce and 1/10 ounce.

In 2007 for the 40th anniversary there was an additional 1kg version in fine gold (all others 22K gold), and in 2017 for the 50th anniversary there was a 50 oz, 5 oz, 1/20 oz as well as 1/50 oz mintage. In 2018, the 2 oz Krugerrand was added to the range.

1 oz /oz. – Since the introduction of the Gold Krugerrand program in 1967, the Gold Krugerrand at 1 troy ounce has been a constant. Until 1980, the 1-ounce Krugerrand was the only gold coin available that was made of 91.67% gold, or 22 karat gold. The rest of the metal profile is 8.33% copper, which increases the durability of the coin. Each of the 1-ounce gold coins has a diameter of 32.77 mm, is 2.84 mm thick and has a gross weight of 33.93 grams.

1/2oz from 1980

1/2 oz / ½ oz. – In 1980, the South African Mint began minting Krugerrand coins in sizes smaller than one troy ounce. This allowed more people who could not afford to buy a full ounce of pure gold to purchase a form of the extremely popular Krugerrand. The 1/2 ounce size was generally produced in smaller quantities than its one ounce counterpart and in some years was minted only in proof.

1/4oz and 1/10oz from 1980

1/4 oz. / ¼ oz. – The gold 1/4 oz. Krugerrand was introduced in 1980 along with its larger counterpart, the ½ oz. Krugerrand, introduced. In some respects, the 1/4 ounce Krugerrand has proven more popular than the 1/2 ounce size, as it is priced well below the 1/2 ounce size.

1/10 oz. / 1/10 oz. – The smallest gold Krugerrand appeared in 1980 along with the other South African bullion coins in fractions. As the smallest gold coin, the Krugerrand also became one of the biggest sellers, appealing not only to price-conscious investors but also becoming a popular Christmas gift for those who wanted to give a truly “golden” present. In many years, the 1/10 ounce gold Krugerrand had the largest or second largest mintage of any Krugerrand coin in a given production year.

What is the most famous gold coin in the world?

The most famous and at the same time the most popular capital investment coin in the world is actually the Krugerrand.

Other well-known gold coins: Maple Leaf, American Eagle, American Buffalo, Australian Kangaroo, Vienna Philharmonic, Sovereign and Britannia, China Panda, Centenario and Vreneli.

What is so special about the Krugerrand?

The Krugerrand is made of a copper-gold alloy that weighs a total of 1.0909 troy ounces, of which one troy ounce is 24 karat pure gold (. 999). The copper alloy makes it extremely durable and scratch-resistant – and gives the Krugerrand its characteristic orange-gold hue.

What is the most expensive Krugerrand?

In 2017 there was a limited, anniversary mintage of 201750 gold coins weighing 50 ounces to mark the 50th anniversary. Each of these Krugerrand gold coins is worth about 100,000 euros.

For the 40th anniversary in 2007, there was already a special edition with a limited edition of 40 XXL coins. At that time, these gold coins were sold out in a very short time. Each gold coin weighs about one kilogram and were sold at the time for about 30,000 euros.

Why are Krugerrand gold coins different in price?

Especially Krugerrands of special vintages often achieve significantly higher prices than the pure material value of the gold contained. For example, firsts from 1967 or rare coins from the apartheid era. In addition, of course, Krugerrand premium gold bullion coins, which are issued on special occasions and vary in price.

Krugerrand advantages

  • Krugerrand has only a small premium on the value of its gold content
  • Krugerrand coins are resistant
  • Lower investment costs
  • Easy to sell and worldwide
  • Popular design
  • Easy to store and transport

Is the gold Krugerrand tax free?

Yes, Krugerrand 1oz gold coins are officially defined as investment gold and thus can be purchased free of VAT. Coins that can be purchased free of VAT must meet two criteria:

  • Gold fineness over 900/1000
  • the coin must be recognized as a means of payment in its country of origin

The Krugerrand 1oz meets both criteria.

If you do not want to pay tax on the profit, you should hold your Krugerrand coins for at least one year and keep the keep.

Can I easily resell Krugerrand gold coins?

The Krugerrand gold coins are in great demand worldwide and thus guarantee the largest buyer market of all. We are happy to buy Krugerrand gold coins. Please contact us if you would like to sell your collection.

The Krugerrand platinum coin and its incredible popularity:

The Krugerrand family also includes a platinum coin minted in 2017 to mark the 50th anniversary of the Krugerrand brand.

The Krugerrand platinum coin is a highly desirable precious metal coin with a weight of one troy ounce and a purity grade of 99.95%. The coin features the image of former South African President Paul Kruger on the obverse and a leaping springbok antelope, the national symbol of South Africa, on the reverse.

Although the platinum Krugerrand is a relatively new member of the Krugerrand family, it has gained incredible popularity among investors and collectors. The unique design and high purity of the platinum coin make it a desirable addition to any precious metals portfolio, while its limited mintage(only 2017 pieces) ensures its exclusivity.

One of the main factors behind the popularity of the Krugerrand platinum coin is its rarity.
Another factor contributing to the popularity of the Krugerrand platinum coin is its association with the established Krugerrand brand. The Krugerrand name has long stood for reliability and trust, and the platinum coin meets the same quality and purity standards investors have come to expect from the Krugerrand brand.

Overall, the Krugerrand platinum coin is a unique and valuable addition to the world of precious metal coins. Its rarity, high purity and association with the prestigious Krugerrand brand make it a highly desirable coin for collectors and investors alike.

Perhaps also interesting:

Krugerrand – Silver coins – Gold coins – Platinum coins

Other interesting gold coins from South Africa: