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Gold is a highly desirable precious metal. While we are all familiar with gold coins, there are also Krugerrands, frequently regarded as the most beautiful gold coins. In this blog post, we will talk about everything you need to know about Krugerrands and why they’re so popular!
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Krugerrands are gold coins made in South Africa. The Krugerrand was first made in 1967, a co-production of the South African Mint and the Rand Refinery, making precious metals.
The name of the coin is taken from Paul Kruger, who served as South Africa’s first Boer president from 1883 until 1900. Paul Kruger was the country’s first Boer president, serving from 1883 until 1900. As a result, the phrase “Kruger” and “rand” are combined to form the Krugerrand.
This coin has a picture of President Kruger on one side and a picture of the South African Republic’s national animal, the springbok. The word “Krugerrand” is written above the springbok. You will see how much gold is in this coin underneath the springbok image. There are also words on one side that say “Suid Afrika – South Africa.” This means that Krugerrands are legal tender in South Africa.
History of the Krugerrand
The Krugerrand was a specifically created coin for people who wanted gold. It was a successful coin because it allowed people to easily invest in gold. People thought of the Krugerrand as a kind of coin that could be bought with gold, and it became popular all over the world.
Krugerrands became popular in the 1970s. Gold made a lot of people happy because the price went up. By the end of that decade, the price was over $2,200 an ounce. That is when U.S. investors started buying Krugerrands because no gold coins were being minted in the United States at that time. The first American Eagle gold and silver bullion coins were issued in 1986, explaining why U.S. investors favored Krugerrands over American coins.
The Krugerrand’s Success
The Krugerrand was a successful gold coin that made other countries do the same. Canada began making its maple leaf gold coins in 1979, and China made its panda coins in 1982.
The demand for Krugerrands was always changing. They increased through the 1970s, declined in the late 1980s and 1990s, and started increasing again around 1999. Sometimes they made many of them (six million), but sometimes they only made 24,000.
In 2018, there were more than 50 million ounces of gold Krugerrands. These are the same as American Eagle gold bullion coins. The difference is that there were only 20 million ounces of American Eagle gold bullion coins produced since their original production in 1986. At one time, South African Krugerrands made up roughly 90% of all the gold bullion coins worldwide.
Originally, there was just the one-ounce gold coin. Now they make coins that are half-ounce and quarter-ounce, and tenth-ounce.
How Krugerrands Are Made
The Krugerrand is a gold coin that was designed to last. As a result, it is made of a blend of gold and copper. Due to the coins’ purity of 91.67 percent (the remaining 8.33 percent) – 22 karats – they are created to weigh more than one ounce (1 and 1/11 ounces) in total to include one troy ounce of gold.
Krugerrands are not pure gold but partly copper. This makes them more resistant to scratches than other bullion coins, pure gold. They also have a different color from other bullion coins because of the copper.
People who come to South Africa may take no more than 15 coins of Krugerrands with them when they leave. This is a limit from the South African Reserve Bank.
Silver Added to the Mintage
The resurgence in popularity of gold Krugerrands, coupled with rising gold and silver prices, has released one-ounce silver Krugerrand bullion coins every year since 2018. The 99.9% fine silver Krugerrand design is identical to the original golden Krugerrand.
In 2018, on the 50th anniversary of the original Krugerrand coin, a special platinum version was made as a collectible. Proof coins have 60 more edge serrations than regular bullion coins.
Frequently Asked Questions About Krugerrands
Economic sanctions were imposed on South Africa for its apartheid regime. During the 1970s and 1980s, it was illegal to import Krugerrand coins in many Western countries. More than 50 million Krugerrand coins have been sold since production started in 1967.
In 1985, the United States prohibited the importation of Krugerrands. After this, many people thought it was illegal to own Krugerrands, but they are now legal to import again.
The 50 years of international marketing and worldwide trade have made this coin one of South Africa’s most famous and valuable exports. Gold coins have a market value of $2.5 trillion, but this does not include gold bars. It is easy to buy and sell gold coins, but they are worth different amounts each day due to how much people want them.
Krugerrands are a good investment because gold is stable and easy to sell. Many people use it as an investment because they can turn it into money if they need it.
FNB will be the first bank to sell Krugerrands online. It will partner with Rand Refinery to be sold on its share-investing platform. You usually buy Krugerrands at a coin dealer.
The Krugerrand is the first legal gold coin. It was made by the South African Mint, and it can be bought and sold everywhere legally. So many people wanted this coin to become the world’s most popular gold coin.
There is no limit on how much gold you can have in the U.S. You will need to spend your budget, but there is no limit to what you can have.
An ounce of Krugerrand is 33.9 grams. It is made out of gold that has been mixed with other metals.
Krugerrands are still popular among gold investors. South Africa has had bad luck with gold production, but people still like the Krugerrands.
Krugerrands can be sold to FNB Share Investing. They will buy them back if you store them in Rand Refinery Ltd. To sell, just buy Krugerrands from a dealer and turn in the Krugerrand to the FNB Share Investing company.
Gold, as many people are aware, is not magnetic. If a magnet adheres to it, it is not genuine. Also, if the coin does not ‘ping’ when dropped on a smooth surface, then it could be fake.
More information on Krugerrands can be found on this website.