Krugerrand

The Krugerrand is the best-known and best-selling gold investment coin in the world. Minted since 1967 by the South African Rand Refinery and the South African Mint, it was the first coin designed specifically for private gold ownership – and in doing so shaped the entire category of bullion coins.

Composition and fineness

The Krugerrand consists of a gold alloy of 22 carat, corresponding to a fineness of 916.7/1000. The added copper makes the coin more durable and gives it its characteristic reddish hue. Important: despite the alloy, the one-ounce coin contains exactly one troy ounce of pure gold – the total weight is around 33.93 grams because of the copper content.

The Krugerrand is available in four sizes: 1 oz, 1/2 oz, 1/4 oz and 1/10 oz.

Design

The obverse shows Paul Kruger, the last president of the South African Republic; the reverse a springbok antelope – the national animal of South Africa. The name combines "Kruger" and the South African currency "rand".

Krugerrand as an investment

Because it is recognised worldwide and extremely liquid, the Krugerrand can be bought and sold practically anywhere. It counts as tax-privileged investment gold and is therefore VAT-exempt on purchase (HMRC; Directive 2006/112/EC). The premium over the pure spot price is comparatively low thanks to the enormous mintages.

You can calculate the current value of one Krugerrand ounce with the gold calculator – simply apply one troy ounce at the current gold price. For second-hand purchases, an authenticity check is worthwhile: weight, diameter and thickness are standardised and can be verified with the coin authenticity check.

In brief

The Krugerrand is the classic among gold coins: robust thanks to the 22-carat alloy, tradable worldwide and with exactly one troy ounce of fine gold in the large variant. For many investors it is the uncomplicated entry into physical gold.