The South African Krugerrand contains 91.6% pure gold and is therefore 22 karats, just like the American Eagle gold coin. It has a distinct orange gold color due to the coin containing 8.33% copper, which gives the coin more durability than for example, the Canadian Gold Maple Leaf, which almost 100% pure.
South African Gold Krugerrand Coin
The South African Krugerrand is a gold coin that made its debut in 1967, and was the first gold bullion coin to become available for purchase after the end of gold bullion ownership in 1933. It received it’s name after the fifth and final President of the prior South African Republic Paul Kruger, which his portrait is displayed on the obverse side of the coin. The Rand part of the name comes from the South African currency. On the reverse side of the coin is an image of a springbok antelope. In South Africa this coin is considered legal tender, however the value of its gold content is many times more valuable than its face value, which is the case for all bullion coins.
The Krugerrand made its first appearance in the United States in 1974 after the U.S. was given the right to own gold bullion again as a personal investment. Since its debut people started making a mad dash to invest in gold and the Krugerrand instantly became a favorite coin among gold bullion buyers. It continues to be the most successful bullion coin to ever be minted.
Unfortunately, in 1985 because white people ruled the South African government, congress passed a law prohibiting Krugerrands from being sold in the U.S. However there had already been about 22 million Krugerrands imported in the U.S. so the buying and selling continued to take place in the U.S. because there were no restrictions made to what could be done with the coins that were already in the U.S. There is still an active trading market with the Krugerrands today; in fact thousands are traded on a daily basis.
In 1994 the ban of importing Krugerrands into the U.S. was exempt and gold bullion Krugerrands were once again made available for sale in the U.S. Sadly though once this took place the American Gold Eagle had by then stolen the show and Africa stopped promoting the sell of Krugerrands to the U.S. You can purchase Krugerrands at a lower price than American Eagles and to this day gold bullion buyers continue to purchase Krugerrands especially because they are considered a bargain.
When this coin was first produced it was only created in the one-ounce size. As production of the coin continued on they began minting other sizes in order to meet the needs of investors with all different sized pocket books. These sizes include:
1 Troy Ounce Gold Krugerrand - 32.6 mm diameter and 2.75 mm thick