What are Gold Krugerrands?

March 15th, 2013  |  Published in Coin Series

Gold Krugerrands are popular among gold buyers and coin collectors. This gold coin is minted exclusively by the Rand Refinery of South Africa to promote the gold trading market in the country. The term “Krugerrand” is a combination of the name of Paul Kruger, the former president of the Transvaal, and Rand, which is South Africa’s currency. During Kruger’s time, gold deposits were discovered in the area known as the Golden Arc. The Krugerrand was minted in order to turn the large deposits of precious metal into cash. In 1967, the first 1-ounce gold coin was made.

Krugerrands are considered unique in that while they are actually bullion coins, they were also considered legal tender and were used as currency. For this purpose, the coins were minted using an alloy made from gold and copper in order to make it durable and resistant against scratches and dents. Initially, Gold Krugerrands were considered illegal for residents of other countries to purchase in the 1970s and throughout the 1980s because of South Africa’s apartheid policy. After apartheid ended in 1994, the sanction against the coin was lifted.

Krugerrand Specifications

The Krugerrand is actually 22 karats, made from a gold-copper alloy (11 parts to 1, respectively), giving it a slightly reddish color. Its value if it is to be exchanged for cash is the value of the gold it contains. Its actual weight is 33.93g, which is equivalent to 1.09 troy ounces. About 31.10g of the coin is gold and 2.82g is copper. It is 2.84mm thick and 32.77mm in diameter.

In modern times, there have also been collectible versions of the coin struck. These are in proof quality and may be found across a variety of different precious metal weights.

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