The history of the South African Krugerrand
The South African Krugerrand was the first gold coin to contain one troy ounce of gold. First produced in 1967, the Krugerrand celebrated its 50th birthday in 2017, and it’s still one of the top-selling gold bullion coins in the world.
During the late 1960s and early 1970s, South Africa mined 75 per cent of the total gold output in the western world. Seeking a way to market and promote gold to increase demand, the South African government backed the idea to produce the Krugerrand gold coin.
Whilst some countries disallowed the Krugerrand coin due to its association with the apartheid in South Africa, it was still the most popular gold bullion product across most of the world in the 1970s.
What’s the value of a Krugerrand gold coin?
As with the vast majority of investment gold products, the Krugerrand coin is priced according to the content of gold in the coin, with a small premium (commonly known as a ‘fashion charge’) added to cover production and packaging costs.
This means that the South African Krugerrand doesn’t have a face value, with its value instead based on the fine gold content as priced twice per day by the London Bullion Market Association (LBMA).
The LBMA announces its gold price fix at 10.30 and 15.00 daily. It is this price that The Gold Bullion Co. use to offer competitive, real-time pricing for Krugerrands based on the live price of gold.
Furthermore, due to its status as a gold bullion investment coin, the Krugerrand coin is not subject to VAT.
Speaking to MoneyWeb after the Krugerrand coin achieved top-seller status in 2016, Richard Collocott, executive head of marketing at the Rand Refinery said: “It’s more than exceeded any expectations that could have been had at the outset.
“We anticipate and we have every intention for Krugerrands to remain, if not the top-selling gold coin in the world, in the top three.”
Where to buy the Krugerrand coin
The Rand Refinery doesn’t sell Krugerrands directly to the public, instead distributing them through independent dealers such as The Gold Bullion Co.
We stock South African Krugerrand coins in 1/10th, quarter, half and one-ounce variations and also carry the 2017 edition, which marks the coin as 50th year in production.
Browse the full range now and choose a VAT-free bullion product with an interesting history and strong promise for the future.
Buy Krugerrands from The Gold Bullion Company, a reputable and well-known UK-based family business.
Our outstanding customer service team - who have received a 99.6% positive rating in independent reviews from over 10,500 customers - backs every purchase with pre-sales advice and post purchase support. Every purchase features fully insured delivery and our unique buy-back guarantee.
