The Rise of the Krugerrand Coin in the Global Bullion Market

A decision by the South African government opened the Bullion market to private investors, and here’s how the iconic Gold Krugerrand coin transformed investment. Before 1967, investing in Gold was limited to purchasing shares or those outsized Bullion bars usually stored in armoured vaults. Essentially, this meant that only governments, banks and the wealthier members of society were in a position to trade in Gold Bullion. However, when the Rand Refinery and the South African Mint collaborated to mint a troy-ounce Gold coin bearing the head of Paul Kruger, the Precious Metal became instantly accessible to those with a more modest income.

At the time of the Krugerrand’s launch, nobody could have foreseen the extent of the impact it would have. Not only did sales soar locally, but the novel one-ounce coin soon gained the attention of collectors and investors worldwide. The 1970s saw a major bull market for commodities, and by the end of the decade, the Gold price peaked briefly at well over $2 000, and Krugerrands became a popular choice for investors in the US.

Impressed by the coin’s success, other countries began to follow suit. Canada became the first when, in 1979, the North American nation released a Gold coin bearing an image of its national emblem – the maple leaf. Three years later, China launched its one-ounce Panda. Unusually, the US was slower to respond, adding Gold and Siver versions of its American Eagle coin only in 1986. While the latter gained popularity also, it was the golden facsimile of the president of the former Boer republic that dominated the market, accounting for around 90% of all Gold Bullion coins at one stage and remaining to be the market leader.

Why Should You Invest in Krugerrand Coins?

As mentioned, there are other ways to invest in Gold. In addition to shares, there are newer options like futures and exchange-traded funds (ETFs). But there are several good reasons to opt for Gold coins:

  • Better value retention: Economic downturns are a fact of life, and when they occur, physical Gold and other Precious Metals are significantly less exposed to the volatility typical of the alternatives, which tend to fall prey to the fears and whims of investors during times of uncertainty.
  • Easy to monitor: The Gold spot price is set daily and updated at intervals. Prices are quoted in US dollars per troy ounce, so the precise market value of your Krugerrand coins is instantly available whenever you need it.
  • No costly broker fees: If you purchase from a registered Bullion dealer, you will pay only a nominal surcharge. Furthermore, your purchase will not attract VAT because Krugerrands are designated as legal tender.
  • More options: In 1980, the South African Mint began issuing half, quarter and one-tenth of an ounce Gold Krugerrands, followed by a one-ounce Silver version in 2017. The choice means there are still affordable options, despite the metal’s steady gain.

Where to Buy Your Krugerrand Coins

Mr K is a reputable, established Bullion dealer and one of the few permitted to purchase directly from the Rand Refinery, ensuring authenticity and perfect condition. You can buy online or from our showrooms, and we offer a safe custody service. If you’re ready to invest in your family’s future, why not click here to view our options?

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.