The grandfather of modern gold bullion coins, the South African Krugerrand is arguably the most successful gold coin ever made. First minted in 1967 as a means of promoting the South African gold market, the Krugerrand accounted for up to 90% of all gold bullion coin sales by 1980.
Krugerrands are legal tender coins, meaning you can use the coins as money in its country of issuance, South Africa. It is also IRA approved, allowing financially savvy investors to rely on the staying power of gold for their retirement planning.
Background
The Krugerrand is named for South African politician Paul Kruger. Kruger served as president of the South African Republic for four terms and is remembered as the leader of the Boer resistance against the British during the Second Boer War (1899-1902).
A detailed engraving of Paul Kruger’s profile takes up the center of the front of the Krugerrand, partially encircled by the words ‘South Africa’ both in English and Estonian. The rear of the coin depicts the springbok antelope, a national symbol of South Africa, along with the date and size of the coin.
The Obverse of the South African Gold Krugerrand
The Reverse of the South African Gold Krugerrand
Few South African exports have enjoyed such worldwide acclaim as the Krugerrand. Years after its first release, the continued demand of the Krugerrand is a testament to its high-quality craftsmanship and its inimitable and iconic design.
Purity and Size
Compared to the soft and easily-deformed fine gold contained in many different types of coins from around the world, the gold in the Krugerrand is a sturdy mixture of copper and gold. This mixture, known as crown gold, can also be found in British gold sovereigns. Krugerrands are backed 100 percent for weight and purity by the government of South Africa, and come in four sizes:
- 1 Troy Ounce
- 1/2 Troy Ounce
- 1/4 Troy Ounce
- 1/10 Troy Ounce
Gold Krugerrands proofs are also in circulation and can be differentiated from standard Krugs by the number of serrations on their edges. Normal Krugerrands have between 160 and 115, while proof Krugs have 220.
Krugerrand Facts
Did you know that many gold bullion coins popular today were originally minted after their home nations saw the success of the Krugerrand? The American Eagle and Canadian Maple Leaf and others were minted in the 1970s and 1980s as a response both to the Krug’s success and its scarcity due to international sanctions against South Africa due to apartheid.
Since finding its way over to the US, the Kruggerand has enjoyed unparalleled popularity and even carved out a niche for itself in American culture and folklore. Today, anonymous donors in certain cities in the United States have made it a tradition to donate Krugerrands instead of common currency in Salvation Army donation kettles during the holidays.
The Krugerrand is perhaps the best-selling gold bullion coin of all time. Exact figures are hard to come by, but between 1974 and 1985 alone, an estimated 22 million Krugs made their way into collections in the United States.