Krugerrand from South Africa is considered the first modern bullion
coin and is made of 22 carat gold. Due to its age and its status as
the most traded coin worldwide, it is the most famous bullion coin in
the world. Paul Kruger, the coin's namesake, is depicted on the
obverse and a springbok, the heraldic animal of South Africa, on the
The Krugerrand gold coin
side of the coin shows a springbok striding through the South African
steppe and the year of minting. Below the springbok is the fine
weight in Afrikaans and English. On the other side is a profile of
Paul Kruger, who was the first president of the Transvaal Republic.
Paul Kruger was also the founder of the Kruger National Park. His
picture is framed by the name of the country, once in the Afrikaans
spelling Suid-Afrika and once in the English spelling South Africa.
coin is issued by the Rand Refinery in Germiston near Johannesburg,
which is the only company authorised to mint the Krugerrand. Unlike
most bullion coins, the Krugerrand is only 91.67% gold, the rest is
copper to make the coin mechanically less sensitive. As the official
currency of South Africa, the coin is tax-free in many countries
despite its low gold content. While all other bullion coins have a
face value, the Krugerrand has no such minting; the value of the
Krugerrand is recalculated daily on the basis of the gold price.
Controversial Paul Kruger
Kruger is descended from German emigrants who bore the name Kürger.
While in South Africa the umlaut was lost in the name, in
German-speaking countries he is always called Paul Kürger.
the president of the Boer Republic of Transvaal during the First and
Second Boer Wars (1880-1881 and 1899-1902). The territory of
Transvaal is in present-day South Africa. Kruger spent his last years
in Clarens, Switzerland.
his lifetime, Paul Kurger was perceived in Europe as a freedom
fighter against the growing colonial power of the British. Many
Kruger streets in the Netherlands, Belgium and, until 2009, in St.
Gallen, Switzerland, bear witness to this. Today, he is viewed much
more critically, since in his role as president of the Transvaal
Republic he was also something like the spiritual father of the later
apartheid state. In South Africa, the Economic Freedom Fighters in
particular are calling for his statues to be torn down and the
streets bearing his name to be renamed.
Krugerrand has been produced since 1967, making it the oldest modern
bullion coin in the world. From the beginning, the Krugerrand was
designed as gold for private individuals. Since 30% of the
gold mined in the world today comes from South Africa, it made sense
to create a coin to tap into the market for private
gold buyers. The first and original Krugerrand was produced with a
fine weight of 1 ounce (31.103 g) of gold, but due to the alloy with
copper, one coin weighs 33.93 grams.
its introduction, the production figures of the Krugerrand have
fluctuated greatly, mainly because the embargo policy against the
apartheid regime prohibited the import of this coin into the main
sales countries in Europe and America, sometimes for decades.
1980, the Krugerrand has also been available in ½, ¼ and 1/10 ounce
denominations, and in 2017, 50, 5, 1/20 and 1/50 ounce denominations
were added. In 2018, a 2 ounce version was added.
its 50th anniversary in 2017, the Krugerrand was also introduced in
silver and platinum.
Significance of the Krugerrand today
the ups and downs of importance over time, the Krugerrand is still
one of the most important gold coins in the world
today. In Switzerland, which has only partially adopted the sanctions
against South Africa, the Krugerrand is probably the most common
bullion coin. Today, South Africa is still one of the most important
mining countries in the world. In 2017, precious metals were second
only to minerals on the export statistics with 25.1% at 16.7%, a
significant share of which is likely to be gold and thus also the
buyers, the Krugerrand is attractive because of its relatively low
price premium over the material price and its widespread distribution
and popularity. As a coin that does not have a serial number like
bars, the Krugerrand naturally grants more anonymity.
Trading of Krugerrands on premesec.ch
the Krugerrand is very well known and accepted almost everywhere, it
is an excellent coin to trade on premesec.ch.