KRUGERRANDS Find a MR K Store Own the legend
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15.280
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1837.100
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23.740
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1020.000
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2017.000
01

Our South African Heritage

For South Africans, Krugerrands symbolise our nation’s continuing narrative. Gold mining laid the foundations for South Africa’s early prosperity, while the design of the coin features renowned former president Paul Kruger on the obverse side. The reverse side depicts a springbok, a familiar sign of South African national pride and achievement to sports fans everywhere. Minted in South Africa from local raw materials, the Krugerrand carries the weight of history yet today is more relevant than ever.

Under the SARBA Act of 1989, Krugerrands are considered to be legal tender in South Africa, despite having no actual face value in Rand.

 

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02

It’s what’s inside that counts

First minted in 1967, the Krugerrand was the world’s first ounce-denominated Bullion coin. Beautiful and resilient, each 1 oz Krugerrand contains one full troy ounce of Gold (the troy ounce is the traditional unit of measure for precious metals). It actually weighs slightly more than an ounce, and comprises 91.67% pure South African Gold, with the balance accounted for by copper.

The addition of copper makes the Krugerrand particularly scratch-resistant, and gives each coin a distinctive orangish hue. Since 2017, 99.9% pure Silver Krugerrands have also been available.

 

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03

Why invest in Krugerrands?

  • Krugerrands are a convenient, tried and tested way of owning Gold as a private investor.
  • Krugerrands have guaranteed purity and weight.
  • They offer a value premium over the Gold Bullion price.
  • Krugerrands offer enduring value, a stable investment opportunity and enhanced financial security in uncertain times.
  • Krugerrands are available in various weights, giving investors more flexibility.
  • Krugerrands can be quickly and easily converted to cash, as there is always a ready market for them at easily ascertained prices.
  • Krugerrands are considered a currency rather than an asset, so they attract no VAT liability for South African taxpayers.

 

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04

Why Choose Mr K?

  • We are an established Gold Exchange, and we specialise in buying and selling Krugerrands.
  • We use our knowledge and experience to empower you as an investor.
  • We offer a customer-centred, discreet and professional buying and selling experience.
  • Mr K’s secure storage facilities give you the option of safely storing your Krugerrands on our premises, completely free of charge.

 

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Frequently Asked Questions

Krugerrands are 22ct Gold Bullion Coins, with a Gold purity grading of 91.67 percent. The reason behind the minting thereof was to promote South African Gold to international markets and to further empower individuals to own Gold Bullion. To this day, Krugerrands are still among the most frequently traded Gold Coins across the globe.

The first of these 22 carat Gold Coins were minted, through a collaboration between South African Mint and Rand Refinery, on the 3rd of July 1967.

This well-celebrated Gold Coin’s name is derived from the surname of former South African president, Paul Kruger, as well as the South African currency, ‘the Rand.’ Paul Kruger served as the president of South Africa from 1883 to 1900.

Each Krugerrand is minted from 22 carat Gold, with a purity grading of 91.67%, so that each Krugerrand contains precisely 1 TROY Oz of pure Gold. The remaining weight thereof is attributed to the Copper alloy, which is added to the Coin to make it more durable for ‘circulation processes.’

Over the last twenty years, the price of Gold, within a South African context, has increased with a staggering 1101.59% (Aug 2021).

Yes, the price of Gold is ‘Dollar-denominated,’ which simply means that Gold’s price is always determined in US Dollars. This means that even if you were to buy a Gold Krugerrand in South Africa, with South African Rands, the price of the Krugerrand in question will in fact be determined in US Dollars and merely converted to South African Rand at the time of purchase.

Our ‘Buying Price’ is that of Spot Price, which is the General Market’s current index asking price of Gold at any given time. Our selling price is Spot Price plus 7%.

Central Banks Reserves: When Central Banks invest in Gold, they buy enormous quantities at a time. Thereby, creating a large demand for Gold at any given time, and by doing so they generally raise the price thereof. The same is true that when Central Banks sell Gold into the market. Under such conditions, they usually sell large quantities at a time, thereby lowering the Demand for Gold and decreasing its price.

The Value of the US Dollar: There is an undeniable relationship between the Value of the US Dollar and the Price of Gold. This is an inverse relationship, which simply means that when the US Dollar strengthens, the price of Gold usually goes down. When the US Dollar weakens, the price of Gold usually goes up.

The Worldwide Jewellery Demand: When the  demand for Gold Jewellery increases on a global scale, Gold’s price will undoubtedly rise as well. The opposite is also true, in that when the demand for Gold decreases across the globe, its price will undoubtedly fall.

Investment Demand as Wealth Protection: In times of Global or National financial instability, investors will often not receive their expected returns on bonds, equities, and real-estate investments. Therefore, the demand for Gold generally spikes dramatically and when it does, its price too will increase.

Inflation: When US Inflation rates rise, the value of the US Dollar automatically decreases. At the same time, most other investment avenues generally fail to deliver inflation-beating returns to their investors. Therefore, many investors turn to Gold, which is commonly viewed as a hedge against inflation and currency depreciation. Under such conditions, the demand for Gold will rise, and so too will its price.

Buying Krugerrands is an excellent method of  diversifying one’s  investment portfolio, seeing as Gold is widely considered to be a proven hedge against inflation and currency depreciation. It’s also widely recognised as being a ‘liquid asset,’ which means that it can be quickly and simply converted into cash while retaining its market value. One of the biggest benefits to owning Krugerrands, is that it has Legal Tender status, which means that no VAT is charged in both the buying and the selling thereof. From a South African perspective, Krugerrands are easily obtainable, much more so than most other Bullion Coins. Last but not least, as one of the world’s most celebrated and  recognised Bullion Coins, the Krugerrand can be traded virtually anywhere in the world.

The profits made from selling Krugerrands are taxable. Seeing as Gold offers its keepers no interest nor dividends, those who invest in it, do so primarily with the purpose of making a profit from it, through the increase in Gold’s price. SARS, therefore, argues that the taxpayer who chooses to invest in Krugerrands, must contemplate selling it at some stage in the future. Thereby, aiming to make a profit, which in return is taxable.

Taxpayers who decide to invest in hard assets like Krugerrands, must be careful to record the reasons for their decisions to invest in these assets. Also, their subsequent actions must always support their stated intentions. Failure to do so may make it difficult, if not impossible, to discharge the onus of showing why any proceeds made from Krugerrands should not be taxed. This means, that if you invest with no intention to sell soon, you may argue that the proceeds are not taxable.

When selling Krugerrands, without having any record of the buying price the coins in question, the following will apply: Paragraph 1 of the Eighth Sch which determines that the base of pre-valuation date-assets must be determined in terms of para 26-9. Paragraph 26(2) provides that where the pre-valuation date expenditure cannot be determined, the taxpayer must adopt either the market value method (para 29), or the 20% of proceeds method.

Krugerrands were specifically designed to be Legal Tender and, therefore, no VAT is charged in both the buying and the selling thereof.

At Mr K we are experts in the field of buying and selling Bullion. Therefore, we are well trained and equipped to know what to look for, with regards to any potential flaws in Bullion. Secondly, the fact that we buy directly from Rand Refinery, gives our clients peace of mind that the Krugerrands bought from Mr K are authentic and of the highest quality. In buying Bullion from the public, we are more alert with regards to the authenticity and quality of the products in question. Therefore, we thoroughly inspect all Bullion on offer, for any potential flaws that would devalue the item in question. We conduct all of five 5 checks on each Krugerrand bought from the public, including the ‘Ping Test,’ to ensure its authenticity. We also ensure that all our staff is adequately trained in these processes, to ensure that they know what to look for, as well as what to listen for in the context of the aforesaid ‘Ping Test.’

Crypto Currencies are in many ways directly the opposite of Bullion. The most obvious difference between the two, is the fact that Crypto Currencies are completely digital, while Krugerrands are physical Bullion products. Another major difference between the two, is that the amount of ‘Coins’ within any particular Crypto Currency have been intentionally limited, to precisely monitor its supply and demand, while Krugerrands will most likely be manufactured while there remains Gold available to be mined. The last major difference between the two currencies, is that Crypto Currencies seem to be much more volatile than Krugerrands, with rapid and unpredictable changes occurring within most of its currencies on a regular basis. Krugerrands on the other hand have proven itself to be much more stable with regards to fluctuations, and, therefore, and ideal investment over the long haul.

Despite both Gold Shares and the Krugerrand belonging to the Gold market at large, and both being Dollar-depreciated, these two investments differ quite drastically from one another. Gold Shares generally refer to an investor’s ‘owned percentage’ in a larger unit of Gold or in a company operating in the Goldindustry. Such shares are usually digital in nature and are strictly regulated in terms of supply and demand. In contrast to Gold Shares, the Krugerrand is a tangible investment. The Spot Price, thereof, fluctuates in correlation with the Dollar-Rand exchange rate, as well as with the rise of Gold itself. Unlike in the case of Gold Shares, the Krugerrand can be physically kept safely by investors themselves, thereby, eliminating the risk of digital organization.

Both Silver and Gold Krugerrands weigh 10z in total. The Silver Krugerrand is manufactured from Fine Silver, with a purity grading of 99.9 percent. In contrast to this, the Gold Krugerrand is manufactured from 22ct Gold, with a purity grading of 91.6 percent. Added to the Gold Krugerrand is a fair percentage of Copper, to make it more durable. To do so is particularly necessary for the Gold Krugerrand because it is a circulation (circulated) product. The Gold Krugerrand is also considered a Legal Tender, while the Silver Krugerrand isn’t. Therefore, no Tax is charged to any transactions relating to the buying and selling of Gold Krugerrands. In contrast to this, the Silver Krugerrand does not enjoy Legal Tender Status and, therefore, Tax is charged to all transactions relating to the buying and the selling thereof.

South African based refining and smelting company, ‘Rand Refinery’ is the only producer of Krugerrands.

Mr K is one of only a few organizations registered to buy Krugerrands directly from Rand Refinery. Mr K offers its clients the option of purchasing either ‘newly minted’ Krugerrands, or Krugerrands that have already been in circulation.

This potential ‘difference in colour’ can be attributed to the source of both the Gold and Copper alloyed together in the Krugerrand itself. Gold can potentially differ in colour, depending on the specific area it was mined in, whilst the same is true for Copper. Seeing as Krugerrands are circulated products, Copper is added to it, to make it more durable in the long haul. Thereby, causing Krugerrands to be 22ct Gold, instead of the 24ct.

A Proof Krugerrand is not a circulated mint, but rather permanently sealed with the purpose of never being opened nor touched. These Coins are set in casings or capsules to meet the aforesaid aims. Proof Krugerrands also have a unique appearance, to differentiate them from circulated Krugerrands, which are manufactured for the purpose of circulation. Proof Krugerrands have a mat-finish, with a glossy background. The manufacturing costs, as well as the grading costs, attributed to these Coins, are higher than that of ordinary Krugerrands. Therefore, it is only produced on request. Proof Krugerrands are primarily aimed at the collectors’ market.

When buying Proof Krugerrands from our clients, Mr K is obligated to take such Coins out of its concealed packages, to inspect it for any potential blemishes. By doing so, the Coins in question lose their ‘Proof Status.’ Therefore, can only be purchased at the price of a circulated Krugerrand.

Numismatic coins are directed at the collector’s market From an investment perspective, Numismatic Coins, generally require a much longer period of investment. The biggest reason for this is because there are very few organizations that buy Numismatic Coins for their collectors’ value. Most organizations within the Precious Metals Market will purchase such coins only for their metal value. Mr K, however, chooses to focus primarily on Krugerrands.

Mr K is proud of our South African heritage and, therefore, we primarily trade in Bullion which was produced and manufactured within South Africa. Sourcing South African Bullion is also much easier than international Bullion, as importing Precious Metals can be both very costly, as well as time-consuming. Doing so only tends to spike the prices of Bullion unnecessarily. Mr K, therefore, prefers South African Bullion, as it’s manufactured from the same metals as its oversees counterparts and can be sourced at a fraction of the price.

We can only deem a Bullion product as being sold, once we have received the funds matching the quotation for the item/s in question. Therefore, we require that all ‘accepted quotations,’ be settled and cleared immediately. Only by doing so, can clients receive the purchased items at the quoted price. Should funds, relating to the purchase of Bullion, reflect later than the pre-determined deadlines (given to clients at the time of quotation), the quotation in question will undoubtedly change, in accordance with the Gold market itself.

We also keep minimum Bullion stock at our various outlets. Such stock is sold on a ‘first come first serve’ basis, which further emphasises the importance of all EFT purchasers being cleared immediately. In most cases, we will, however, need to order the Bullion products purchased. Under such circumstances, as is most often the case, we can only order the products if the full purchased amount has been cleared and fully reflects in our Bank account.

The bank charges are too high when paying with your debit or Credit Card.

For Mr K to stay compliant with the terms of our licensing agreement, we ensure that all required administration processes are strictly followed, as set out in our aforesaid licensing agreement. By doing so, we protect both ourselves as an organization, our staff, and most importantly of all our clients. We do, however, ensure that we complete the administration processes in question in a manner that is both quick and simple, to ensure customer satisfaction.

As a respected Gold Buyer, we gladly accept Gold Coins from other countries, based on the predetermined Gold Price per gram, as it stands at any given time, in accordance with the weight and purity grading of the coin in question. Hence, we follow all the same processes, as in the case of purchasing other Recycled Precious Metal items.

Mr K will buy all Krugerrands at prevailing commodity prices, as long as the coins in question meet the industry standards. Please visit our pricing page, available on our website, for our current buying prices. To sell your Krugerrand/s to us, simply take these to your nearest Mr K store and we will purchase them from you in a manner which is both transparent and very professional.

When storing Krugerrands, you have three options available to you:
1. You can store it in a secure place of your choosing, for example at your home or office. Please note that it’s not advisable to store Krugerrands in a home safe or in any other ‘obvious location.’
2. You can store it in a safety deposit box, obtained from a commercial bank or another service provider.
3. You can make use of Mr K’s complementary Safe Custody Service.

South African residents are not allowed to export Krugerrands without the approval of the South African Reserve Bank. Foreign tourists or visitors are allowed to export fifteen 1-ounce Krugerrands per passport, provided that the coins in question were purchased in a foreign currency.

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