Where to Buy Gold Krugerrands and Their Value Today

None of the elements we currently prize for one reason or another has gained the universal appeal of the dense, soft and malleable bright yellow metal with the chemical symbol Au. In addition to its value to the electronics industry as a corrosion-free electrical conductor, its reflective properties are invaluable for various aerospace and electronic warfare developments. However, in the public domain, we buy Gold Krugerrands, and to a lesser extent, Jewellery, both for their beauty and value as investment vehicles.

Unlinking paper currencies from the fixed price of this Precious Metal has allowed its value to be determined by supply and demand. Since then, it has proved to be one of the most dependable investment opportunities. Alternatives, such as stocks and shares, are highly sensitive to external factors that might influence a company’s sales and profits. As a result, their value is frequently subject to significant fluctuations, leading to heavy losses as often as substantial gains. By contrast, the Gold Krugerrand has consistently increased in value, despite comparatively minor downturns since its launch in 1967. When US President Richard Nixon decided to unlink the Dollar, the metal’s value was fixed at $35. In June 2017, it reached an annual high of almost $1300, and the trend continues. 

While governments and banks purchase the metal as standard Bullion bars, they weigh 12,4 kilograms (400 troy ounces) and carry a price tag that precludes most small investors. When the South African Mint and the Rand Refinery were appointed to release the first Gold Krugerrand, the goal was to open the opportunity to everyone. At the launch, locals could have purchased the world’s first Bullion coin to contain precisely 31,1035 grams (1 troy ounce) of fine Gold for just over R30, including a small premium. When comparing that figure with that 2017 Dollar price, it’s easy to explain this coin’s popularity with investors.

Granting the coin legal tender status served to exempt it from VAT though,  in South Africa, only the SA Mint and authorised coin dealers are permitted to trade in Gold Krugerrands. However, the Reserve Bank will purchase these but not other commemorative coins. Like stockbrokers, the dealers are entitled to add a premium to the prevailing official price, which is published twice daily.

There are some advantages when buying your coins from an authorised dealer. Firstly, you will be assured that you are buying genuine Gold Krugerrands with the approval of Rand Refinery. Also, if you are concerned about their security if kept at home, some reputable dealers will be able to provide you with a safe custody facility. Finally, the dealer will guarantee to repurchase your coins when you choose to sell them.

Mr K is an authorised dealer in Precious Metals and one of very few permitted to purchase Bullion coins directly from the Rand Refinery. We assure authenticity, provide a safe custody service and guarantee total discretion whether you buy Gold Krugerrands in-store or online. We invite you to learn more about buying Gold Krugerrands and other Bullion investment opportunities.

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.