South Africa’s iconic bullion coin transformed the private ownership of gold. Proving so popular worldwide, the Krugerrand inspired other nations to mint their own 1oz coins. The Canadian Gold Maple Leaf, Australian Nugget, Chinese Gold Panda, American Gold Eagle and British Britannia coins all came to follow.
Even today, the Krugerrand is one of the most popular gold investments. So if you’re buying into gold, it pays to know what makes the Krugerrand so popular. And why the original 1oz gold coin could be the investment for you.
Gold coins all come with a common advantage over bullion bars and jewellery. For starters, they are officially issued by governments which make them instantly recognisable across the globe. Meaning you can sell your 1oz gold coins almost anywhere in the world, without the hassle of verifying authenticity.
Another key advantage is their size. Coins are a small collectable investment. So you can build your portfolio one coin at a time – making 1oz coins the most “affordable” gold investment. Of course, you can buy as many coins as you want, giving you complete control over your investment.
It´s the same apples for selling coins as well. You decide how much of your collection to sell or keep at any given time. While the divisibility of coins also make them easier and safer to store.
The original, still unique
Getting back to the Krugerrand, there are some specific advantages that sets it apart from other 1oz bullion coins:
Legal tender value
Since the first Krugerrand was minted, the South African coins have been legal tender. However, they don’t have any monetary face value. Which means their legal tender is valued at the market price of gold. So you are legally within your rights to exchange a Krugerrand coin for the cash value equivalent to 1oz of gold.
In today’s market you can buy Krugerrand coins for slightly less than the American Gold Eagle and Canadian Gold Maple Leaf. While 1oz bullion coins are generally the most cost-effective gold investment, slightly lower prices give the Krugerrand an extra advantage over other coins.
A more solid gold
Krugerrands consist of a 22-carat alloy of over 90% gold and small amounts of silver and copper. The blend gives the Krugerrand its signature golden-orange glow, but also makes the coin more durable. Pure gold is quite soft and easily marked or damaged. Whereas the 22 carat Krugerrand coin is stronger compound than other bullion coins.
The popularity of the Krugerrand is one of its biggest assets. It remains the most widely collected and traded bullion coin in the world. Which means you can buy Krugerrands with the confidence that demand will be high when the time comes to sell. The history, design and global appeal of South Africa’s bullion coin makes it hard to find a more convenient gold investment.