Wednesday 22 October 2014

Krugerrand Gold Coins – The Granddaddy Of Modern Gold Bullion Coins!

The beautiful Krugerrand gold coin is probably the most well-known contemporary gold bullion coin. Released in 1967 from the South African Mint Company, it had been meant to circulate as a legal tender currency. The Krugerrand grew to become so popular that in 1980, 13 years after it was introduced, it accounted for 90 percent of the gold bullion market!

Krugerrand Gold Coin

The coin is 22 karat gold and is composed of 91.67% gold and 8.33% copper. This gold alloy combination makes the gold Krugerrand more durable than other gold bullion coins. The durability factor was an important consideration when designing the coin as it was intended to be circulated and had to be resistant to scratches and dents.

The most popular version of the coin, the 1 ounce size, weighs approximately 1.09 troy ozs, is 2.84 mm thick, and measures 32.77 mm in diameter. In 1980, three smaller varieties also became available, each containing one half ounce, one quarter ounce, and one tenth ounce of gold, respectively.

The front side (obverse) of the Krugerrand features the face of the 5th president of the South African Republic, Stephanus Jonannes Paulus Kruger. The name of the coin was actually derived from Kruger’s surname and the Rand, which is the official currency of South Africa. Also inscribed on the obverse side in capital letters are the words “Afrikaans” and the English version, “South Africa.”

The back side of the coin (reverse) features a picture of the South African National symbol, the springbok or antelope specie. At the top of the coin, is the inscription of the word, KRUGERRAND, the coin’s name. At the bottom, inscribed in both English and Afrikaans is the Krugerrand’s gold content. If the coin happened to be the one ounce variety, the inscription would be, “FYNGOUD 1 OZ FINE GOLD.”

Because of the remarkable success of the South African Gold Krugerrand, other foreign countries such as the U.S., Canada, and Australia began to mint their own gold bullion coins. Canada was the first to do so in 1979 when it released the Canadian Gold Maple Leaf.

Collectors can also obtain the coin in proof edition, but they are more expensive than the regular bullion variety. Unlike many of the other bullion coins, such as the Canadian Maple Leaf and American Eagle, which are also produced in silver, Krugerrand gold coins are only available in gold. Beware of any websites offering these fake silver versions!

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