SOUTH AFRICA 1 OZ GOLD KRUGERRAND COIN, 1975
Krugerrand gold coin minted by the South Africa government is one of the more frequently traded gold coins in the world market. It was the first gold-bullion coin that was tenderable at the market value of its face gold content.
The coin's name is a combination of the first Boer president of the South African Republic, Paul Kruger, and the name of the South African currency, the rand. The coin features Paul Kruger on the obverse of the coin and a springbok, a famous national symbol of the South African Republic, on the reverse. The words "South Africa" and "fine gold" are displayed in both English and Afrikaans.
The coin was created as a means for the private ownership of gold bullion by the general public and was first minted at the South African Mint on July 3, 1967, making it the first available gold coin in an era when bullion ownership had been effectively outlawed in the United States for decades with the exceptions of coins that had numismatic value. They have legal tender status in South Africa, which allowed them to be imported into many, but not all, countries without import taxes, duty or VAT. This feature allowed the citizens of many countries to own gold Krugerrand coins because they permitted ownership of foreign currency; the fact that this was a roundabout way to acquire gold was permitted by this seemingly brilliant technicality.
More gold Krugerrands have been minted than all the other gold bullion coins put together, with some 54 million Krugerrands having been minted since 1967. Most Krugerrands were minted in the 1970s and early 1980s to meet the demand as gold bullion buyers flocked to gold coins as protection against inflation.
The South African Krugerrand was first imported into the United States immediately after Americans regained the right to buy and own gold bullion on December 31, 1974. The rush to buy gold was on, and the Krugerrand became an instant hit with gold bullion buyers. Today the Krugerrand remain the most successful gold bullion coins ever minted.
Krugerrand gold bullion coins banned
However, in 1985, because the South African government was white-ruled, Congress passed a law that prohibited South Africa from selling Krugerrands in the U.S. By then, though, an estimated 22 million Krugerrands had already been imported, and the ban did not affect the buying and selling Krugerrands that were already in the United States. Today an active market continues for Krugerrands and thousands trade daily.
In 1994, Congress lifted the importation ban, and gold bullion Krugerrands were again offered for sale in the U.S. By then, however, Gold Eagles had captured the U.S. gold bullion coin market, and the South African effort to promote Krugerrands in the U.S. ended. Today, Krugerrands sell at prices below Gold Eagle prices and remain favorite gold coins for gold buyers seeking to buy bargain bullion gold.
Krugerrands come in four sizes: 1-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce. All four gold coins carry the same design. 1-oz Krugerrands are by far the most popular and generally can be found in large quantities.
Krugerrands gold coins are durable. They are alloyed with a small amount of copper, making them 22-karat coins - containing 11/12 part 24-karat gold and1/12 part copper. Copper is a traditional alloy of gold coins used to harden coins, making them hard enough to resist normal scratching and denting - an important feature, as 24 karat coins and bars are more easily damaged and generally require protective packaging.
The price of a Krugerrand is determined by how much the gold weighs plus a premium for shipping, handling and mint fees. The value of the gold is determined by current gold prices. The premium can vary between sellers. Following the popularity of the original one ounce coin the mint begun producing coins in smaller weights to encourage more people to invest in this way. The premiums added to the price of the gold are higher as a proportion, for the lower weight coins. This means that when investing you are better off to buy the highest denominations that you can afford.
Over the last twenty years there has been a definite upward trend in the value of gold. During this period there have been a few small dips in price however the rises that followed increased the values substantially. In the early nineties an ounce was worth approximately two hundred and fifty US Dollars whilst today the same weight is worth over eighteen hundred dollars. This enormous difference suggests that gold is a fairly safe way to invest your money. If you are looking for a way to invest your money you could consider buying into the Krugerrand. This bullion coin has a very high percentage of pure gold and has been very popular since its inception in the sixties.
The Best Time to Buy Gold Coins
If you want to invest in gold, here’s your chance. If you’ve been paying attention to gold prices lately, they have taken quite a hit.
The analyst at Deutsche Bank suggests that prices may reach as much as $2,000 per ounce of gold. Scotia Capital supports this but is a bit more conservative with their estimate of $1,750.
As you know, when investing, buy low and sell high. This is the time to buy gold because of the lows it has hit. The definite upward trend in the value of gold anticipated for the second part of 2012, you’ll likely see a return quickly with a chance of continued profits on your investment.