Looking to invest your money safely, and getting a decent return? Krugerrands can be a great safe haven for you. But what are Krugerrands and why are they such a good option?
The Krugerrand is one of the most popular and renowned gold coins available on the market. They originate in South Africa and their demand is high worldwide. In the 1960s and 1970s, Krugerrands were so popular that they accounted for approximately 90% of all gold coin sales. These coins were released as a way for the government of South Africa to monetize the gold bullion that was being mined in the country. In the 1980's, once the gold Maple Leaf and gold American Eagle were released, demand for Krugerrands reduced. All gold Krugerrands contain one troy ounce of 999 fine investment grade gold bullion.
The gold Krugerrand was initially released in a 1 Ounce size only. However, due to their popularity, the Rand Refinerly also released these coins in fractional sizes. These include the 1/2 ounce, 1/4 ounce and 1/10 ounce sizes. The range of sizes available make it easy for investors to have more control over the size and form of the portfolio they build.
Gold Krugerrands have a unique and renowned slightly coppery tone. This is due to the fact that these coins are 22 karat (or 999 fine), meaning that they contain 91.6 % pure gold. The remaining composition of the coin is made of copper, which changes the tone of the coin slightly. Adding copper to these coins is seen as beneficial to most investors. This makes the coins stronger, more durable, and more resistant to nicks and scratches. It makes the coins more durable.
Krugerrands are one of the lowest premium gold coins available on the market. This menas that they sell for only a few percent over the spot gold price. Furthermore, the premium on Krugerrands tends to remain fairly consistent. Should you wish to liquidate your postion at a later date, Krugerrands are recognised worldwide and are easy to sell. Furthermore, their price is very transparent.
One other reason to consider investing in gold Krugerrands is the VAT / tax advantage. Investment grade gold bullion (including Krugerrands) is not subject to any VAT upon purchase in the United Kingdom or in Europe. This makes them a much better option than silver, platinum or palladium for new investors. These metals are subject to approximately 20% VAT upon receipt.
In conclusion, investing in Gold Krugerrands is a great idea for investors who are new to the bullion market.