The Gold Krugerrand is a South African gold coin, named after the famous South African President and nature conservationist Paul Kruger and the South African monetary currency. Krugerrands have been legal tender worldwide since the first coin was struck in 1967.
As the world's first ounce-denominated gold coin, the Krugerrand was developed by the Chamber of Mines of South Africa on behalf of the South African gold mining industry and authorized by the South African Reserve Bank. The Krugerrand became the chosen vehicle to promote South African gold as an investment vehicle into the international markets.
Krugerrands were originally minted in one size only: one full troy ounce of fine gold, which is the equivalent of 31.103 grams of gold. Made from 22 carat gold, Krugerrands have since September 1980 also become available in three different sizes containing exactly 1/2 ounce, 1/4 ounce and 1/10 ounce of pure gold.
Once the most widely held and actively traded bullion coin in the world, the Krugerrand remains a simple way for investors worldwide to own gold. To date some 48 million ounces of fine gold contained in newly minted Krugerrands have been sold worldwide. This equates to more Krugerrands in circulation internationally than any other gold coins produced. By 1980 the Krugerrand accounted for 90% of the gold coin market. The success of the Krugerrand led to many other gold-producing nations minting their own bullion coins, such as the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1981, and the American Gold Eagle in 1986.
It is important to note that although Krugerrands are considered legal tender, there is no record of their face value on either side of the coin, an extremely rare phenomenon among bullion coins. Instead, its legal tender value is the bullion value of its gold at the current market price.
Most modern gold bullion coins also have a silver edition. Not so with the Gold Krugerrand, which makes it a much sought-after coin among investors who wish to add gold bullion to their portfolio.
