The Krugerrand is one of the world´s most popular coins among collectors, principally for its intricate design and its value. Over the long-term, Krugerrand coins are an excellent investment!
The coin was first struck in 1967 to make it easier for everyone in the world to buy gold. Prior to that, it was not legal for countries to import gold bullion from South Africa because of the countries activities during Apartheid. However, there was no law against investing in foreign coins.
So the Krugerrand was born and immediately given legal tender. This allowed holders to exchange the coin for cash anywhere in the world. The South African government was the first to come up with this concept – albeit the reasons were to promote the country more than investment.
The government plan somewhat misfired however, as many countries refused to acknowledge the Krugerrand and banned imports of the coin. The ban was lifted in the mid-90´s following the collapse of Apartheid and the Krugerrand has since become the most sold gold bullion in the world.
About Krugerrand gold
The name of the Krugerrand is derived from Paul Kruger, a former President of South Africa and hailed as the best leader the country as ever known, and Rand after Rand Refinery where the coin was originally produced. Rand Refinery is one of the largest gold mines in the world.
The coins are available in one troy ounce, half-ounce, quarter-ounce, and one-tenth, and is made from 99.9% pure gold. The rest is made up of copper alloy which makes the coin durable and scratch resistant and gives the Krugerrand its unique orange-gold hue.
The design features the bust of Paul Kruger on the obverse and a Springbok antelope on the rear which is the national symbol of South Africa. The coin is noted for its intricate design and the advanced techniques in which the coins are minted. The current price of a one ounce Krugerrand with coininvest.com is around €964.
****Why buy gold?
With the precious market performing so poorly, it is understandable why investors may feel skeptical about putting their money into gold. But we all know the golden rule is to buy low, sell high. And right now gold prices are low.
Another golden rule to remember when investing in gold is that precious metals are used to hedge against riskier investment. It is known as a safe house investment, but now the economy is stronger traders have more confidence that equity stocks will rise, therefore using precious metals for back up is not required – plus gold prices are going down.
However, the economy will not stay strong forever – or even stable. Currencies will fall eventually and when they do gold prices will rise. It may depend on the cause of the next financial crisis, and financial forecasts suggest it could be more serious than the 2008 banking collapse. Invest in gold now whilst prices are low, and make sure that the South African Krugerrand is amongst your investments.