Krugerrand Gold Coin
The Krugerrand gold coin
was first produced by the South African Mint in 1967. The idea for its introduction belonged to the South African Mining Chamber which aimed to stimulate the gold trade
. Being a legal tender of the government, the coin was also available as an instrument for portfolio diversification in the United States. Until the 1980s, the economic sanctions against the South African apartheid had made the import of the Krugerrands illegal in many Western states. The coin regained its status as major gold bullion when the apartheid was lifted. To date, investors and collectors have purchased more than 54 million coins, equating to 1140 tons of gold. In fact, the Krugerrands are among the best selling gold coins
in the world. Their distributor is the South African Rand Refinery Limited.
The first issue of Krugerrands contained only coins of one troy ounce. Today, the coin is minted in denominations of 1/10, 1/4, 1/2, and 1 troy ounce. The coin contains 91.67 percent of pure gold and 8.33 percent of copper. The weight of the Krugerrand is 33.93 grams and its diameter stands at 32.6 mm. The coin has no face value and its legal tender value is related to the current price of the gold.
The designer of the coin is the South African sculptor Coert Steynberg. The obverse side of the Krugerrand displays the former President of the South African Republic, Paul Kruger. The reverse side features a springbok which is one of the national symbols of the country. The coin has inscriptions in Afrikaans and English. Proof Krugerrands are produced as collector’s items. In contrast to the regular edition, the proof piece has 220, rather than 180, serrations at the edge of the coin. The Krugerrand is minted only in gold and no silver coins have been issued to date.
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