Gold is widely believed to be a good investment and, if managed correctly, will give you the chance to reap impressive financial rewards. Krugerrands are highly sought after because they are valued at the price of the gold which they contain. If the gold price rises, so does the value of the coin. For example, if you purchase a full Krugerrand containing one troy ounce of 22 carat gold, when it is valued at £581.00, and sell it when it is valued at £600.00, you will have made a considerable profit.
The Krugerrand makes it possible for private investors to purchase gold in smaller and more affordable quantities than previously possible. Before the first minting of Krugerrands in 1967, gold was only available in large brick form which was too expensive for many private investors to own.
Other small types of gold investment, such as jewellery, may be more aesthetically pleasing than a bullion coin but do not contain as high a percentage of gold. In its purest form, gold is very malleable and prone to becoming scratched. Jewellery is often made from a gold alloy containing more durable metals and only 12, 16 or 18 carat gold. This is because jewellery is intended to be worn and must look immaculate at all times. Krugerrands on the other hand are made of 22 carat gold and only contain a small amount of copper for increased durability. Jewellery might look impressive, but its value does not compare to that of a Krugerrand.
The relatively small size of a Krugerrand also makes it the most liquid form of gold investment. There are many coin dealers, such as Scoinshop, who buy and sell Krugerrands on a regular basis and are willing to ship them to anywhere in the world. Because Krugerrands are considered legal tender, they are also exempt from import taxes, duties and VAT.