with the national currency, ‘rand.’ On the reverse side, a galloping springbok antelope, one of South Africa’s national symbols, is elegantly depicted.
The Johannesburg Stock Exchange (JSE) deals in Krugerrands via a robustly regulated secondary market, similarly to listed equities market instruments, with prices quoted based on the coin’s weight. Issued by the South African Reserve Bank (SARB), Krugerrands can be redeemed, backed by its legal tender status and enhanced durability with a 22-karat (91.67% gold with 8.33% copper alloy) composition.
Rich History of the Krugerrand 📜
When initially minted in 1967, U.S. citizens were prohibited from owning gold bullion but were allowed to own foreign coins, enabling Krugerrand trade in the U.S. However, during the 1970s and ’80s, heightened awareness of South Africa’s apartheid policies led to decreased demand, with many Western countries, including the U.S., imposing import bans, which lasted until apartheid ended in 1994.
Despite receding prominence post-apartheid, at its zenith, the Krugerrand had secured 90% of the global gold-coin market by 1980.
Current Status and Beyond 🌍
Post-1994, Krugerrands’ production experienced significant dips, reflecting broader declines in South Africa’s gold output, which today accounts for just 6% of global production. Nonetheless, Krugerrands persist as a prime choice for gold investment.
Investing in Krugerrands 💰
Krugerrands remain a stellar investment for gold enthusiasts due to their intrinsic value and portable size. Ideal for portfolio diversification, Krugerrands offer a tangible asset option, especially appealing amid economic uncertainties. However, ensuring secure storage and dealing with reputable dealers are vital. Consider the below attributes appealing to potential investors:
- Highly Liquid Market
- Value tied to Physical Gold, Independent of Gold Mine Performance
- Consistent Historical Returns
- Low Correlation with Other Assets, enhancing Portfolio Diversification
Purchasing Krugerrands 📈
Krugerrands can be purchased both in-person and online from trusted coin dealers. Even coins minted during international sanctions are legal to own, buy, or sell.
Gold Content and Cost of Krugerrands 💸
A single Krugerrand contains one ounce of gold, with an additional 0.09 ounces of copper, ensuring its durability.
Each Krugerrand’s price closely tracks the market price of gold, quoted per-ounce, ensuring straightforward valuation for investors.
In summation, Krugerrands represent a storied and steadfast investment option in the realm of gold, captivating both history buffs and financial strategists alike.
Related Terms: gold bullion, South African Rand, gold investment strategies, precious metals trading.
References
- Minerals Council South Africa. “Fact Sheets”, Download Commemorative Booklet #MakingMiningMatter, Page 28.
- South African Government. “South African Reserve Bank Act, 1989”, Page 30.
- Scottsdale Bullion & Coin. “Gold Krugerrand Coins”.
- Krugerrand. “The World’s Most Traded Bullion Coin”.
- Johannesburg Stock Exchange. “Example Product”.
- South African Reserve Bank. “Gold Coins Purchased From the Public”.
- Rand Refinery. “Products: Krugerrands”.
- Yale University. “Sanctions on South Africa: What Did They Do?” Page 7.
- Ronald Reagan Presidential Library & Museum. “Message to the Congress Reporting on the Economic Sanctions Against South Africa”.
- The Baltimore Sun. “With Fall of Apartheid, Krugerrands Regain Luster”.
- International Monetary Fund. “1971 Annual Report”, Page 143.
- The Washington Post. “South Africa’s gold industry, like its economy, is crumbling”.
- Monex. “Gold South African Krugerrand Price Charts”.
