1 Unze Krügerrand
|country of Origin||Südafrika|
|size in mm||32,61 x 2,80 mm|
The Krugerrand, or Krügerrand in the German speaking area, is not only the world's best known bullion coin but also has the biggest market share among bullion coins. This is the result of the low surcharge compared to the price of pure gold. The Krugerrand coin has been minted since 1967 in 1 ounce denominations. From 1980 onwards smaller denominations (1/2 ounce, 1/4 ounce, 1/10 ounce) were introduced. The official mint is the SA Mint. The Krügerrand coin is exclusively minted in gold and does not exist in silver, platinum or palladium.
Gold with copper alloy
The coin contains 1 troy ounce of gold and has a weight of 33.9306 grams. Thus the coin has a fineness of 22 carat or 91.667%. The higher weight is the result of a copper alloy which makes the coin more resistant to scratches and gives the coin its unique orange appearance. The name of the coin is a compound of the South African statesman Paul "Kruger", who was president of the South African Republic between 1882 and 1902, and "Rand", the official currency in South Africa.
The distinctive difference
The face value of the gold coin is not imprinted on the Krügerrand as compared to other investment coins. Nevertheless, the Krugerrand is recognised as legal tender in South Africa. The legal tender value of the coin is based on the Gold Fix Price at the London Bullion Market.
The design of the Krugerrand has remained unchanged. The face shows Paul Kruger, from whom the coin got its name. The legend is inscribed with "SUID-AFRIKA - SOUTH AFRICA". The reverse of the Krugerrand shows a springbok antelope, the national animal of South Africa. The antelope is placed in the middle of the coin with the mint date surrounding it. Also, on the reverse is the insciption "KRUGERRAND" and the weight information "FYNGOUD 1 OZ FINE GOLD". The edge of the Krugerrand is serrated.
Kurgerrand chosen as bullion coin by investors
he Krugerrand is the most popular bullion coin in the world. Many investors chose to purchase the coin to invest in gold. However, production levels today are significantly lower than in the early years of the coin. In 1986, the USA and Europe forbade the import of the coin due to the ongoing apartheid. This led to a decreased interest and production dropped drastically. Since the end of the import sanctions the production of coins at the SA Mint has increased slightly but is still low. The Krügerrand is an investment coin, but the past sanctions on the production of the coin and the distinteively varying production figures in some years caused the collector's value to significantly exceed that of gold.
Investors who wish to purchase gold for investment should buy bullion coins, such as the Krügerrand, in larger denominations since the premium relative to the total value is lower. Ophirum offers both Krügerrand varieties, one ounce as well as half an ounce coins.