The Krugerrand is a gold coin that has become synonymous with investment in precious metals. As one of the most recognisable and frequently traded coins in the world, we take a closer look at what makes them so enduringly popular.
During the 1960s, 70% of all gold distributed internationally was from South African mines. In a campaign to promote South African gold, The South African Chamber of Mines conceived the Krugerrand which was minted and issued on the 3rd of July 1967.
It was the world’s first bullion coin intended for private ownership, and its introduction marked a significant milestone in the investment gold market. At the time, citizens of the United States were not allowed to own gold bullion, however, they were permitted to own foreign coins. The ensuing trade of the Krugerrand thrived throughout the 1970s and in 1980, at the peak of the gold trade, it accounted for 90% of the global gold coin market.
As awareness of the South African racial segregation system of apartheid grew, the Krugerrand fell out of favour against numerous economic sanctions placed on the country. The demand for Krugerrands steadily declined until the South African government finally ended all apartheid policies in 1994.
The Krugerrand is named after Paul Kruger, a former President of the South African Republic, and the local currency which is the South African Rand or ZAR (Dutch Zuid-Afrikaanse Rand). Kruger was in office during the Witwatersrand Gold Rush which began in 1886 and resulted in the founding of the largest city in Southern Africa - Johannesburg.
The coin features the image of Kruger on one side, while the reverse showcases a springbok, a small brown and white gazelle which is the national animal of South Africa.
Composed of 91.67% gold (22 karats), it contains one troy ounce of pure gold along with copper to enhance durability. This combination not only gives it a distinctive reddish hue but also ensures that it can withstand wear over time. The value of a Krugerrand is primarily derived from the gold content which fluctuates in line with the current gold price. Over the years, it has gained immense popularity among investors and collectors alike due to its liquidity; Krugerrands are easily bought and sold across global markets.
The Krugerrand stands out not just for its historical significance but also for its role as a reliable investment vehicle in an ever-changing economic landscape. Its blend of beauty, practicality, and intrinsic value continues to captivate those looking to diversify their portfolios with tangible assets.
Here at Wotton Auction Rooms we regularly consign Krugerrands for sale, promoting them to an international market of bidders to achieve consistently impressive hammer prices. Whether you are looking to sell Krugerrands, or start investing in these gold coins, our team would be delighted to assist.
