The Controversial History of South Africa And The Krugerrand

The Controversial History of South Africa And The Krugerrand

The South African Krugerrand is a gold coin that was first minted in 1967 and for some decades created a stir of controversy around the globe. Unusually for gold coins at the time, the Kruggerand could be converted into any currency and was introduced to help promote the South African mint. By 1980 the Krugerrand accounted for 90 per cent of the global coin market – despite some countries rejecting the coin due to its association with apartheid.

When the Republic of South Africa discovered a huge resource of gold in the 1960´s they were eager to market the metal to the world. However, at the time the purchase of gold ingots for private ownership was illegal, so the South African government decide to farm their gold out as coins as sold them at five per cent over the spot price.

The original Krugerrand gold coin contained one troy ounce of 22 karat gold, but the options were widened when three smaller coins were minted in 1980, a ½ ounce, ¼ ounce and 110 ounce. The face of the coin features the bust of Paul Kruger, the State President of the Republic of South Africa who was fondly regarded as Uncle after standing up to the British during the Second Boer War between 1899 and 1902.

Krugerrand collectable gold coins

The Krugerrand is a focal point of gold and economic history. Many countries used to protect their currency against gold – known as the gold standard. This practice however made it illegal for private owners to by gold ingots or bars, so the South African Government came up with the novel idea to produce gold coins and offer it as legal tender. This allowed South Africa to profit from sales and allowed investors to have a hedge should there be a collapse in their countries currency.

The Krugerrand gold coin was a very attractive investment, but it was not without controversy due to its association with the South African apartheid government. The political and economic situation in South Africa was predominantly controlled by the British with help for the Dutch. The country attracted white supremacists looking to profit from the land and subsequently suppressed the black natives.

The apartheid regime which was introduced in 1948 sparked a nationwide institution of racism which restricted the rights and liberties. Blacks were made to mine gold and other natural resources in what effectively was a violation of the Abolishment of Slavery Act 1807. Because of the atrocities committed by the British and the installed apartheid government some countries refused it´s citizen´s the right to buy the Krugerrand.

Because of its controversies and its pivotal position in the history of gold, the Krugerrand is mostly regarded as an investor´s item today. You can find the latest prices of the Krugerrand gold coin by visiting today.