Artefacts discovered in Bulgaria suggest this lustrous yellow metal was first mined as early as 4700 BC. Today, Gold coins are proof of its enduring appeal. However, while Gold mining may have originated in the Balkans, it was the people of Ancient Egypt who first began to produce and utilise this Precious Metal on a grand scale.
In addition to being prized for its beauty, Gold was seen as a symbol of wealth and, by extension, power. The country’s rulers strived to surround themselves with it, even in death. When Howard Carter opened the sarcophagus containing Tutenkhamun’s preserved remains, he found it contained three coffins. The innermost was made of solid Gold and weighed more than 110 kilograms. However, it is perhaps the sheer beauty of the boy King’s golden death mask that prompts most tourists from all over the world to visit the Grand Egyptian Museum in Cairo.
It was King Croesus of Lydia who, in around 550 BC, gave the order to create the world’s first Gold coins. Other countries gradually followed suit, and only in the early 1970s was their use finally abandoned worldwide.
A new role for Gold coins
While it is no longer practical to utilise coinage whose intrinsic value varies according to supply and demand, commodities whose price is influenced by market forces are prized by investors. Until 1967, Gold was bought and sold mainly as large Bullion bars and was unaffordable to the average citizen. In that year, however, the South African Government devised a novel plan that would end this elitist market.
The Krugerrand coin was an immediate success. It not only fulfilled the government’s goal of increasing Gold sales, but as the appeal of these new Gold coins grew, they became a popular vehicle for investors, including those previously excluded from this market by the high price of Bullion bars. Furthermore, Gold investments involving Krugerrands are VAT-free because these coins were designated legal tender.
The Kruger coin rapidly became, and still is the most widely sought-after Gold coin, but its appeal is not limited to investors. Collectors prize them for their beauty and still favour them over rival mintings like the American Gold Eagle, the Canadian Gold Maple Leaf or the British Gold Sovereign.
Among collectors, their value is based on factors like scarcity and condition rather than spot prices. To satisfy the more exacting requirements of the world’s numismatists, the South African Mint produces a double-struck, limited edition of its flagship product known as proof coins. Collectors are often willing to pay well over the current spot price for rare mintings, even though rarity has no influence on their intrinsic value.
Investment benefits of Gold coins
The Gold price is less volatile than share prices. Despite occasional dips, the metal’s upward trend remains consistent. A one-ounce Kruger coin sold for around $35 in 1967 and would be worth around 56 times that figure when this article was written. Gold investments are invariably part of an experienced investor’s portfolio. So, where should one buy it?
Choose an authorised Bullion dealer. MR K purchases Krugerrands and bars directly from the Rand Refinery, ensuring quality and authenticity. Why not visit our online store and join the millions who benefit from investment in Gold?
DISCLAIMER: The information above was derived from reliable sources and deemed accurate at the time of writing. However, changes following publication may have affected its accuracy. Such changes may occur without notice, and Mr K cannot be held liable for inaccuracies in this article’s content or how a reader may choose to interpret it.
