FAQs - Krugerrands
International Dealers: Coins and
South African Dealers: Coins and
KrugerrandsThe world's most widely held and actively traded gold bullion coin. During the late 1960s and early 70s, when South Africa's annual gold mine output averaged 75% of total output in the western world, the promotion of gold was considered vital, following the final collapse of the Gold Standard in 1971.
The chosen vehicle to drive the demand was the Krugerrand, which was developed in the 1960s by the Chamber of Mines of South Africa, working closely with the South African Reserve Bank and the South African Mint.
The Krugerrand was the world's first ounce-denominated gold coin. Although they are legal tender, they have never recorded a face value on their obverse or reverse sides. This was done to emphasise that the value of each coin is directly related to the prevailing value of their fine gold content. They were mass produced to enable the "man in the street" to purchase gold easily and with confidence.
The first 22 carat gold Krugerrand was minted on 3 July 1967. Since its inception more than 50 million Krugerrands in all sizes have been minted. In 1980 the fractional Krugerrands (½ oz, ¼ oz and 1/10 oz) were added to the 1oz Krugerrand to assist the smaller buyer to buy gold at an affordable price. Unusual for gold coins at the time, the Krugerand could be converted into any currency. The Krugerrand was the first legal tender gold bullion coin to gain worldwide use in the modern era.
To this day, many gold owners equate gold ownership with Krugerrand ownership.
Krugerrand's distinguishing features:
- The World's first gold bullion coin
- The World's most widely traded gold bullion coin
- An ounce denominated coin
- Easy to buy and sell world-wide
- Most recognized bullion gold coin brand world-wide