The South African Krugerrand Gold Coin is the worlds first gold bullion coin struck for investment purposes. The 22-karat gold coins were first minted in 1967. It is believed to be the most widely owned bullion coin in the world. Today, investors often identify the coin simply as the Krugerrand. The name is actually derived from combining Kruger, an early (1883-1900) and very popular President of the South African Republic, and rand, which is the currency of South Africa. The Krugerrand is unique in that it does not carry a face value like most bullion coins. Since 1980 and up through to today, the Gold Krugerrand is minted in sizes of 1 ozt, 1/2 ozt, 1/4 ozt and 1/10 ozt. The obverse of the coin has the image of Paul Kruger, the late President of South Africa, while the reverse of the Krugerrand has an image of the Springbok Antelope. Gold Krugerrands are NOT IRA eligible. These gold coins contain 1 troy ounce of fine gold but are made of a 22kt alloy of gold and copper. The fineness of a South African Krugerrand is .9167 or 91.67% gold. When President Nixon signed into law the ability of American citizens to own gold bullion in 1974, the only real game in town if one wanted to own gold coins was the Krugerrand. There were other re-strike gold coins, like the Mexican 50 Peso gold coin or the Gold Austrian 100 Corona, but the vast majority of people investing in physical gold bullion bought a Krugerrand (or more likely, Krugerrands). By 1980, the Krugerrand represented about 90% of the world s gold coin market. Pacific Precious Metals purchases and sells Krugerrands from and to the public. In fact, PPM buys more Krugerrands from the public than any other gold coin. One customer who was selling us some Krugerrands told us a story of how, in the 1970s, when the gold price was well below $100 that his father would send him to the local coin shop to buy a roll of 10 Krugerrands because the gold coin shop offered a deal where if you bought 10 / 1 oz Krugerrands, you got one for free. Now only if that were the case today!
The South African Krugerrand Gold Coin is the worlds first gold bullion coin struck for investment purposes. The 22-karat gold coins were first minted in 1967.