Krugerrand Investment Gold Coin – The Trailblazer


Krugerrand is a very popular investment gold coin. Let’s find out more about this coin which
single-handedly created a whole new worldwide market. First Krugerrand was issued to the public
on July 3rd, 1967. South African government wanted to boost demand
for physical gold produced from rich precious metals deposits of that country. And that’s why Krugerrand was created. For more than a decade that followed, Krugerrand
was the only investment gold coin available on the world gold market. It became so popular that by 1980, sales of
Krugerrands comprised 90 percent of all gold coins sales in the world. How did Krugerrand get it’s name? Krugerrand is a coined word. “Kruger” part comes from the surname of Paul
Kruger, a politician and president of South African Republic who was in power in late
19th and early 20th century. Rand is the name of
a monetary unit of South Africa, just like american dollar,
euro, japanese yen or swiss franc. Krugerrand gained it’s status as the world’s
most popular investment gold coin in spite of many obstacles that it faced. During 1970’s and 1980’s, many countries,
including United States, Australia and Japan banned import of Krugerrands from South Africa
because of the politics of discrimination of black people in that country. As discrimination ended, the export ban was
lifted and since then Krugerrand improved it’s status of the choice
investment gold coin. And all that in the midst
of growing competition the market. Other countries started to mint their own
versions of investment gold coins trying to repeat the unprecedented success of
South African Krugerrand. Now, let’s see how
Krugerrand gold coin looks like. On the obverse, the coin bears
the face of Paul Kruger. Around the head there’s text in Afrikaans
and English which denotes South Africa as the coin’s country of origin. A smooth and gracious South African antelope
called Springbok is depicted on the reverse. Above the animal, the word “Krugerrand” is
inscribed. Mint year is separated and imprinted
to the left and the right of the Springbok. At the bottom, there is annotation of the
amount of pure gold that the coin contains, again, written in two languages. Edge of the coin is reeded, with 160 serations
on a regular investment coin and 220 serations on a special, proof version of the coin. From 1967 until 1980, Krugerrand was produced
only in one size: one ounce of fine gold. In 1980, fractional Krugerrand gold coins
were introduced: half ounce, quarter ounce and tenth ounce of fine gold. Every Krugerrand contains the amount of pure
gold exactly as written on it. For example, one ounce Krugerrand contains
31,10 grams of pure gold, and that is one ounce. But if you put that coin on a balance, you
will realize that it weighs 33,93 grams and that is more than one ounce. Why? It is because, traditionally, Krugerrands are
produced out of gold that is not 100 percent pure but little over 90 percent. In other words, one ounce Krugerrand
contains one ounce of pure gold and little less than 3 grams of copper. Small amounts of copper is added to gold coins
to be strengthened and more durable. Because of the content of copper, different
Krugerrands may vary in hue and tone of their color. That’s expected and nothing unusual. On the screen, you can see the dimensions
of different versions of Krugerrand gold coin. The diametar and thickness of each coin may
slightly vary depending on the conditions under which they are struck. Before I close, let me answer question why
should you buy Krugerrand investment gold coin. If you are looking for a gold coin that will
closely follow changes in the price of gold on the world market, Krugerrand is a very
good choice for you. This coin is bought and sold worldwide with
the low premium over the spot price of precious metal it contains. Because it is minted in large quantities,
it will likely never have additional numismatic value. So, if you want to bet on the increase of that
value for your coin, you may look elsewhere. Or, maybe not? In 2017, Krugerrand celebrates it’s 50th anniversary. To commemorate this event, South African Mint,
which produces Krugerrands, issued special commemorative versions of Krugerrand, not just in gold, but for the first time in history also in platinum and silver. In due time, they may become numismatic rarities. Thank you for watching this video. If you want to find out more about different
types of gold and silver coins other than investment coins like Krugerrand,
click the link on the screen. Also like, share this video and subscribe
to our channel and that will encourage us to create more content like this. If you want to purchase Krugerrand or any
other gold or silver coin or investment bar, please, visit web page on the screen and you
will see the list of trustworthy and reliable gold and silver bullion dealers around the
globe that we recommend. Thank you and good bye.

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