The Krugerrand (/
|Value||1 troy oz. fine gold|
|Mass||33.93 g (1.09 troy oz)|
|Diameter||32.77 mm (1.28 in)|
|Thickness||2.84 mm (0.11 in)|
|Composition||Gold (91.67% Au, 8.33% Cu)|
|Years of minting||1967 – present|
|Design||1984 by Otto Schultz - Profile of Paul Kruger with "SUID-AFRIKA·SOUTH AFRICA" in the legend.|
|Design||1984 by Coert Steynberg - A springbok antelope with the mint date in the field. The legend is inscribed with "KRUGERRAND" and the gold weight.|
Production levels of Krugerrands have significantly varied during the last 50 years. From 1967 to 1969, around 40,000 coins were minted each year. In 1970, the number rose to over 200,000 coins. More than one million coins were produced in 1974, and in 1978 a total of six million were produced. The production dropped to 23,277 coins in 1998 but have increased again, although not reaching previous levels.
The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. It was minted in a copper-gold alloy more durable than pure gold. Economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. Hence the largest markets were the Middle East, Iran, Turkey, Thailand, Hong Kong, Taiwan and Latin America. These sanctions ended when South Africa abandoned apartheid in 1991.
Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.
Variations and imitationsEdit
During the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide. Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1981, the Chinese Gold Panda in 1982, the American Gold Eagle in 1986, and the British Britannia coin in 1987.
Private mints have also attempted minting gold and silver bullion rounds (the term coin denotes legal currency) in the style of the Krugerrand. The rounds often depict Paul Kruger and a springbok antelope, some even blatantly copying the design of the Krugerrands themselves, though the inscriptions are altered. These bullion rounds are not offered by the South African Mint or the Government of South Africa, and are therefore not official, have no legal tender value, and cannot technically be considered coins.
The Krugerrand is 32.77 millimetres (1.290 in) in diameter and 2.84 millimetres (0.112 in) thick. The Krugerrand's actual weight is 1 1⁄11 troy ounces (34 g). It is minted from gold alloy that is 91.67% pure (22 karats), so the coin contains one troy ounce (31.1035 g) of gold. The remaining 8.33% of the coin's weight of 1⁄11 ozt (2.828 g) is copper (an alloy known historically as crown gold which has long been used for British gold sovereigns), which gives the Krugerrand a more orange appearance than silver-alloyed gold coins. Copper alloy coins are harder and more durable, so they can resist scratches and dents.
The coin is so named because the obverse, designed by Otto Schultz, bears the face of Boer statesman Paul Kruger, four-term president of the old South African Republic. The reverse depicts a springbok, one of the national symbols of South Africa. The image was designed by Coert Steynberg, and was previously used on the reverse of the earlier South African five shilling coin. The name "South Africa" and the gold content are inscribed in both Afrikaans and English (as can be seen on the pictures of the coin).
Since September 1980, Krugerrands have also become available in three additional sizes containing 1⁄2 ozt (15.55 g), 1⁄4 ozt (7.78 g) and 1⁄10 ozt (3.11 g) of gold. The word "Krugerrand" is a registered trademark owned by Rand Refinery Limited, of Germiston.
|1 oz||32.77||2.84||33.930||22 karat 91.67%||31.103||1.000||160**|
|1/2 oz||27.07||2.215||16.965||22 karat 91.67%||15.552||0.500||185|
|1/4 oz||22.06||1.888||8.482||22 karat 91.67%||7.776||0.250||150|
|1/10 oz||16.55||1.35||3.393||22 karat 91.67%||3.110||0.100||115|
|* Maximum dimensions|
The South African Mint Company produces limited edition proof Krugerrands intended to be collectors' items rather than bullion investments. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 edge serrations, while bullion coins have 160.
50th Anniversary KrugerrandsEdit
2017 marked the 50th year of issuance (1967–2017) and to commemorate the anniversary, the South African Mint produced "Premium Uncirculated" versions in gold (.916 or 22 carat) and for the first time also in platinum (.999 fine) and silver (.999 fine). The issue limit for these commemorative platinum, gold and silver coins was 2,017 for platinum, 5,000 for gold and 1,000,000 for silver. The commemorative issues are distinguished by a '50' privy seal mark above the springbok design on the reverse for the platinum and silver issues and to the right of the sprinbok design on the gold issues. In addition to the "Premium Uncirculated" issue, 15,000 silver "Proof" krugerrands were also issued as well as "Proof" krugerrands in gold and platinum.
The South African Reserve Bank restricts the exportation of Krugerrands by a South African resident to a non-resident to a maximum of R30,000 (about US$2,100 or 1,870 Euro as of June 2018). Visitors to South Africa can export up to 15 coins by declaring the items to the South African Revenue Service.
Depositing Krugerrands in Salvation Army donation kettles has become an annual tradition of one or more anonymous benefactors in several cities around the United States, including Daphne, AL, Atlanta, GA, Seattle, WA, Spokane, WA, Fargo, ND, Bay City, MI, St. Clair Shores, MI, Kokomo, IN, and Tulsa, OK.
- "Krugerrand - definition". Dictionary.com, LLC. Retrieved 11 August 2012.
- "Products". Rand Refinery. Retrieved 19 April 2019.
produced by Rand Refinery and the SA Mint
- "Bullion". The South African Mint Company. Retrieved 19 April 2019.
The South African Mint Company manufactures Proof Krugerrands, and jointly manufactures the Bullion Krugerrand with Rand Refinery.
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- Yearbook of the United Nations, Volume 45, p. 114, at Google Books
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- American Numismatic Association (1997). The Numismatist. 110. American Numismatic Association. p. 765. Retrieved 30 November 2011.
- Gleason, Stefan (16 April 2015). "Why the Krugerrand Is the King of Gold Bullion Coins". Money Metals. Retrieved 20 April 2018.
- Gleason, Stefan. "Why the Krugerrand Is the King of Gold Bullion Coins". Money Metals Exchange. Retrieved 27 July 2015.
- "2008 Krugerrand Series". South African Mint Company. Archived from the original on 10 March 2009. Retrieved 6 June 2009.
- Financial surveillance and exchange controls FAQ
- Glenn, Stacia (22 December 2011). "Krugerrand dropped into Salvation Army kettle". The Seattle Times. Retrieved 26 June 2013.
- "For fifth year in a row, mystery person drops a gold coin in Salvation Army kettle". AP. 13 December 2013. Retrieved 14 December 2013.
- "Gold Krugerrand appears in a Salvation Army red kettle". WDAY. 20 December 2012. Retrieved 26 June 2013.