If you want to invest in gold coins, then you should consider South African Krugerrands. These 22-carat gold bullion coins are among the most widely produced and circulated 1 oounce gold coins available on the market today.
Let’s consider why the gold Krugerrand is so popular worldwide.
The Krugerrand's History
Gold Krugerrands were first introduced in 1967 to promote gold that was mined in South Africa. They were authorized in the United States in 1975 after the repeal of the 1933 restriction on the possession of gold coins.
The coins were immediately popular, as investing in physical bullion worldwide grew in popularity. In 1978, these coins achieved their zenith and were the world's best-selling gold pieces, with more than 3 million coins produced and sold in that year. They were, however, briefly barred from importation into the United States from 1984 to 1994 owing to apartheid.
What Makes Up a Krugerrand?
Krugerrands are made of 999 fine gold, (22 karat), with an 8.33% copper mix. The copper is added to the coin to make them more resistant and durable, as well as giving them their characteristic rose tint. Russian gold roubles are the only other sovereign gold coins with a comparable look.
Krugerrand have been continuously minted since their introduction by the South African government. Both uncirculated and proof versions of the coin are available to investors. While both coins have the same design, the proof coins are more visually attractive due to their mirror-like sheen and frosted foreground. However, they are less popular as most investors prefer the standard issue Krugerrands, which have a lower premium.
Krugerrands: Unique Design
Krugerrands were initially produced as one-ounce gold coins, which still remain the largest gold coins in the series. However, fractional sizes were introduced in 1980, and the coins are now available in 1 ounce, 1/2 ounce, 1/4 ounce and 1/10 ounce sizes.
The Krugerrand's design has remained almost the same since its inception. The obverse, or front, of the coin, features Paul Kruger, the first President of South African, while the reverse features a springbok, South Africa's national animal. One noteworthy feature that sets the Krugerrand apart from other gold coins is its lack of financial denomination.
Popularity of Krugerrands
Since 1967, about 50 million gold Krugerrands have been manufactured, making them the most frequently issued gold coin in modern history. This compares to a mintage of around 22 million one-ounce Canadian gold maple leaf coins since they were first issued in 1979 and approximately 17 million one-ounce American gold eagle coins, issued in 1986. Given South Africa's position as one of the world's top three gold producers, it's quite improbable that any other gold coin series can ever exceed the output of South Africa's gold Krugerrands.
Krugerrands are priced in line with the current gold spot price, and sell for several percent over the market spot price. Buygoldcoins.eu sells gold Krugerrands to clients in Europe and worldwide.