March 30, 2017 – The Krugerrand is the world’s most popular investment coin, an integral element in the investment sector since the coin’s inception. On 3rd July 1967, South African Mint, the State minting institution in Pretoria minted the first Krugerrand, the world’s most traded gold coin. Commissioned by the South African State, the Rand Refinery near Johannesburg and the South African Mint have been producing Krugerrands for 50 years. Rand Refinery procures the gold and manufactures the blanks, the South African Mint strikes the coins, and Rand Refinery markets and sells the bullion Krugerrand’s globally.
A 2017 1 ounce gold Krugerrand. © Rand Refinery.
In 1967, hardly anyone could have foreseen this incredible success story: more than 60 million coins were sold in just 5 decades. This amount is nearly double the amount sold by its closest competitor. The Krugerrand was the first investment coin on sale in Germany, and worldwide.
Gold has always been considered a stable currency by many investors in times perceived as uncertain, including the Krugerrand, with a precious metal content of one ounce of fine gold, or 31.1 grammes. The Krugerrand’s total weight of 33.9 grammes results from the addition of copper, rendering the surface resistant to scratches, and making it more practical for trading purposes. The world’s favourite investment has lost none of its lustre and attractiveness in its 50th anniversary year. On the contrary, the Rand Refinery and the South African Mint jointly produce 1 million coins yearly, continuing to rise, of which the German-speaking countries purchase half of the ounce coins. Amongst all bullion coins traded in Germany, Switzerland and Austria, Krugerrand has a substantial market share.
The “Mother of all Gold Coins” depicts on the front side Paul Kruger, a former President of the South African Republic (1825-1904) with the country of origin Suid-Afrika / South Africa written in two notations. Kruger’s paternal ancestors were German immigrants, and this side of the coin is based on a German model, the design originally from the Imperial Mint in Berlin. The Springbok antelope, South Africa’s national animal, adorns the back of the coin with the year of minting. The coin’s namesake is linked to the Rand, South Africa’s legal currency since 1961.
Since 1967, the Krugerrand has been South African legal tender, serving mostly as a tax-free investment, its price oriented on the global market price for gold, fixed anew on a daily basis.
Various campaigns are being planned for the coin’s golden 50th birthday. 50 Krugerrand coins weighing 50 ounces – around 1.5 kilogrammes – are distributed through leading collectible coin dealers worldwide. Also, a gold jubilee edition issue of 100,000 pieces will be available. Limited editions of the 2017 Krugerrand will be on sale in silver and platinum – a first in its 50-year history.
For further information regarding today’s Krugerrand go to the website of the South African Mint and of the Rand Refinery.
You can learn more on the historical background of the Krugerrand in this article.
Do you know why the first Krugerrand nearly inhibited Ohm Kruger’s re-election as president of South Africa? You can read it here.