South African Gold Krugerrand Coins
The African gold Krugerrand coin is a very popular bullion coin for those interested in investing in the gold market. In fact, the Kruggerand was the very first modern bullion coin ever minted that could be used as legal tender.
There are many reasons that this coin is popular, but one main reason for this one is that it is easily accessible and easily sold because it is so popular, which is desirable for many people who invest in precious metals of any kind. With the unstable nature of the economy today, investing in gold can allow you to have a solid strategy amid all the market turmoil going on today. Gold has been a standard of wealth for many years, and physically owning your own gold is a great way to protect your wealth and financial status.
Gold Krugerrand coins are typically one ounce coins, weighing in at 22 carats of purity. This coin is praised as a great collectible and investment by gold enthusiasts around the world. In 1967, the South African government first minted this coin to rev up the marketability of South African gold. It is considered legal currency like almost all gold is, but is rarely used for that purpose. It is more of a collector’s item, known commonly to the collecting industry as “medal coins.” It was the first coin of its kind to be valued at the price of gold as it stands. There is no amount imprinted on the coin, and when it is sold, its value is based upon the market value of gold rather than a preset denomination.
Gold Krugerrand coins today are available in an assortment of weights, including half-ounce coins and one-tenth ounce coins, which are also valued based on the market price respective to their weight. For example, a one-tenth ounce Krugerrand will be worth 1/10 the market value of gold, and so on. This coin is considered a form of gold bullion, which is why it was illegal for Americans to privately own them for many years. When the government declared that they were considered legal tender, it became acceptable for anyone to own them if they had the desire. Many countries did make them illegal because they didn’t like the South African politics and the government in the country, but after 1994, the political climate changed and the prohibition ended.
The South African Krugerrand is easily identifiable. They have an image of Paul Kruger on one obverse, who was the 5th president of South Africa and resistance leader within the nation. On the reverse, you will find a picture of a springbok antelope, which is a national symbol of South Africa.
Investing in this coin is like making an investment in any other gold. For example, if you bought a Krugerrand in the 80s when the market value was somewhere near $600 per ounce, you might now have a coin that is worth well over $1,000, since it is based on the market value of gold. Adding Krugerrands to your gold portfolio is a smart move in today’s economy.