FAQs - Krugerrands
International Dealers: Coins and
South African Dealers: Coins and
KrugerrandsIn the 20th century South Africa was the largest gold producing country in the world with production at times accounting for as much as one-third the world's total output.
The first Krugerrand was minted in 1967 as a gold bullion coin, the value of which was based upon the international spot price of the metal. The legal tender 22 carat gold Krugerrand was the concept of the South African Chamber of Mines and first became available to the public in 1967. The Krugerrand is a gold investment product for the "man in the street".
The concept of a one ounce gold coin tied to spot gold's fluctuations quickly caught on. The Krugerrand is an alloyed coin at 22 carats, or 0.9167 purity. Denominated as one ounce of gold, it is struck with no face value indicated on the coin.
Featured on the coin's reverse is the springbok, South Africa's national animal. The Krugerrand contains exactly 1 troy ounce fine gold and its value is based on the daily gold price. It is legal tender in South Africa.
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. Unusually for gold coins at the time, the Krugerand could be converted into any currency.
By 1980 the Krugerrand accounted for 90 per cent of the global coin market. The Krugerrand dominated the world's gold coin market over the next nine years but during the years when sanctions were applied against the South African government in the mid 1980's, other mints took the opportunity to issue their own gold bullion coins. However, the Krugerrand had already established itself as one of the leading brands in the world and still remains so in the 21st century.
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.