South Africa’s Krugerrand has been the most popular gold bullion coin since its inception in 1967. Many other countries have attempted to replicate its success by developing their own brand of gold coins, but to little avail. The Krugerrand remains the most sought-after gold coin in production.

When it was first minted, the Krugerrand was available as a one full troy ounce of pure gold. However, if the coin was made only of pure gold, it would be too easily damaged. In order to counter this, it was decided that the coin should be a gold alloy containing a troy ounce of gold. A small amount of copper is added to each coin in order to make it more durable. Hence the coin’s weight is actually slightly more than an ounce once the copper is incorporated into it.

Following the coins’ international surge in popularity, South Africa began to mint smaller versions of the original coin.

Differing Krugerrand weights

In 1980, the range of Krugerrands was extended to include smaller – and therefore cheaper – versions of the original coin. The new range would include the full troy ounce, half ounce, quarter ounce and one-tenth ounce Krugerrands.

All are made of the same percentage of gold and copper as the first Krugerrands, but are more affordable because of their smaller size. This has added to the demand for Krugerrands because private investors are now able to own gold.

Proof and bullion Krugerrands

Krugerrands were never conceptualised as an aesthetically pleasing collector’s coin but rather as a way in which to make gold available to individual buyers. The collectable aspect of coins was, however, not overlooked and the Proof Krugerrand was designed to fulfil the demand for a more collectable and hence more valuable Krugerrand.

The original Krugerrand, known as a bullion Krugerrand, is mass produced and is only worth the value of the gold that it contains. Proof Krugerrands on the other hand are worth more because they are rarer.

Proof Krugerrands are often encapsulated and accompanied by a certificate of authenticity. It is still possible to tell them apart from bullion Krugerrands, even if they are not encapsulated, by counting the number of ridges along the edge of the coin. A bullion coin has a total of 180 ridges, while the Proof one has 220 ridges.

Choose the right Krugerrand for you

With the current range of Krugerrands available in South Africa, there is no reason not to add gold to your investment portfolio. Contact Scoinshop now to purchase your very own Krugerrand.

Back to Krugerrand

ARTICLES

Investing in Krugerrands

History of the Krugerrand

Different types of Krugerrand - South Africa's premier gold bullion coin

Why the Krugerrand is a good choice for coin collectors

Buy Kruger Coins

Gold Krugerrands