Buying Krugerrands – Price, gold value and collector value explained simply

ByDirk Wasserthal
Krugerrand gold coins from various years, some in original boxes and some in capsules, including a close-up of a historic Krugerrand coin from 1967.

The value of a Krugerrand gold coin is equal to the price of gold (d. h. the value of 1 troy ounce) plus a premium. In most cases, the markup is between 3 and 5%. In addition, there are other subtleties in determining the price of each coin of this world-famous series. Now what to consider when you want to buy Krugerrand? How much does a Krugerrand cost?

How to determine the value of a bullion Krugerrand?

It is not easy to say exactly how much a particular South African Krugerrand is worth in the bullion variety. The price is due to the short-term volatility of the physical gold market. It would be strange to list fixed prices here, as they would be outdated before the article is published and change daily. So how can you find out the current value?

The easiest way to find out the price is to contact a reliable precious metal coin dealer or visit the comparison portals, such as gold.de or gold-preisvergleich.de.

A brief history about the coins

The South African gold Krugerrand was introduced in the late 1960s and was the first modern bullion coin. Within a decade, they quickly gained popularity, becoming the most traded form of privately owned gold. However, this changed in the mid-1980s.

At that time, international embargoes were imposed on South Africa to combat the system of racial segregation known as apartheid. Thus, gold buyers and private investors in other countries were not allowed to purchase Krugerrands.

However, this was not the only reason why South African precious metal products lost market share. In response to these embargoes, other countries also began minting their own bullion coins to meet the demand for precious metal coins. Nevertheless, the Krugerrand remains the world’s most popular bullion coin, offering investors and collectors alike many excellent opportunities for long-term returns.

The beginning

The Krugerrand was first produced on July 3, 1967. The first Krugerrand gold coins were sold in SA Mint paper bags. The Rand Refinery supplies the gold, and the coins are produced by the South African Mint, which is the only organization in the world authorized by the South African Reserve Bank to mint the gold and silver issues and other South African coins that are legal tender.

Interestingly, the name “Krugerrand” is composed of two words: the name of former South African President Paul Kruger (the obverse of the coin bears his portrait) and the name of the country’s monetary unit, the South African rand. The reverse shows the galloping springbok found on the southern African continent.

Types of Krugerrand – bullion and proof coins

You can buy Krugerrands in four sizes, which are available in two minting formats – as bullion coins and as collectibles in proof quality. However, all types are minted in 22-karat gold (917 proof).

Krugerrand gold bullion coins

1 oz: Since the introduction of the gold Krugerrand program in 1967, the 1 troy ounce coin has been the most important product. Until 1980, the coin made of 91.67% gold, or 22ct gold, was available only in this weight. The physical strength of the coin is ensured by the addition of 8.33% copper in the alloy. Each of the current 1-ounce gold coins has a diameter of 32.77 mm, a thickness of 2.84 mm and a gross weight of 33.93 grams.

1/2 ounce: 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 whole ounce of pure gold to buy the popular Krugerrands. The 1/2 ounce size was usually produced in smaller runs than its one ounce counterpart, and in some years was minted only as a proof.

1/4 Ounce: The 1/4 ounce gold Krugerrand was introduced in 1980 along with its larger counterpart, the half ounce. In some respects, the 1/4 oz Krugerrand proved more popular because its price was much lower.

The 1/10 oz: South Africa’s smallest gold bullion coin also appeared in 1980. It also became one of the best-selling coins, which not only attracted thrifty investors, but also became a popular Christmas gift for those who wanted to give a real “gold” gift. Over the years, the 1/10 ounce gold coins have had the highest or second highest mintage in each year of issue.

The production of Krugerrand coins was established according to the following scheme:

First step – extraction of gold from the Rand mines,

Second step – refining and production of blanks at the Rand refinery in Germiston,

Third step – minting coins in the new mint in Gateway (Centurion),

Fourth step – final inspection, packaging and sale in the edge refinery.

This algorithm for production is still used today.

Technical data for Gold Krugerrand:

Diameter – 32.77 mm,

Thickness – 2.84 mm,

Total weight – 33.9305,

Solid gold content – 31.11 g,

Pigment (copper) – 2.82 g,

Gold fineness – 916.67 (22 carats),

Edge – 160 corrugation.

Gold Krugerrand Proof

But you can buy not only the bullion issue, but also as a proof. The gold coins have been produced since the introduction of the investment program in 1967 and epitomize the quality and mintage of this iconic coin. These coins can be distinguished from their investment grade counterparts by counting the number of ripples on the obverse: The proof issue has 220 fluting, while the gold investment coin contains 160 fluting.

For decades, the South African Mint has traditionally minted far fewer proof coins than bullion coins (also known as bullion coins). This was mainly due to the high demand for the bullion coin version. However, as the South African Krugerrand has become both a numismatic status symbol and a practical gold store in recent years, mintages of proof coins have in some cases been higher than bullion coins. Individual vintages were minted only as proof, depending on the size.

Most expensive Krugerrand

The 2017 Krugerrand Anniversary weighs 50 ounces. Recently, it was estimated at 2.2 million South African Rand, which currently, at the time of writing, corresponds to almost 130,000 Euros.

The gold value of this coin alone is an impressive 85,726.5 euros based on the current (as of 07/08/2022) gold price. However, their value as a collector’s item is significantly higher due to their rarity – only 50 pieces were minted .

Ideas why Krugerrand gold coin is a good investment

Krugerrand is not only the most popular gold coin in Germany, but also worldwide. This makes it easier to sell one day, no matter where you are. At the same time, the coin is a very unusual but also sought-after gift. The last few years at RareCoin we have sold numerous proof gold coins and sets as gifts for birthdays, anniversaries, weddings, anniversaries, graduations and so on. Some customers buy such Krugerrand coins for themselves or even for their partner, children, grandchildren, etc..

Buy or sell Krugerrand

The Krugerrand is a very lucrative investment. There are not many coins in the world that are so profitable and popular. In our RareCoin Online Shop you can buy a gold Krugerrand at an optimal price or you are welcome to sell your proof coin, sets, prestige sets and launch sets. We guarantee high quality, best condition and authenticity of the pieces and a very good price when buying.

Perhaps also interesting:

Krugerrand – Silver coins – Gold coins – Platinum coins

Discover our Krugerrand collection in the current range!

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