Krugerrand: the world's most famous gold coin
The Krugerrand is the world's most famous and historically most traded investment gold coin. At one point it made up the overwhelming majority of the entire gold-coin market, and it remains a first choice for investors to this day. Let us look at its story, composition and the reasons for its popularity.
History: the first modern bullion coin
The Krugerrand was first minted in 1967 in South Africa. It was created with a clear goal – to make South African gold accessible to private investors worldwide. It was the very first modern investment ("bullion") gold coin of its kind and became the model for all later coins such as the Wiener Philharmoniker or the Britannia. Behind its minting stand the South African Mint and the Rand Refinery.
What the name Krugerrand means
The name combines two words: "Kruger" after Paul Kruger, president of the former South African Republic, whose portrait the coin bears, and "rand" after the South African currency unit. The result is a simple, memorable name known today all over the world.
Design: Paul Kruger and the springbok
The obverse features the portrait of Paul Kruger. The reverse is adorned by a springbok – an antelope that is the national symbol of South Africa. The springbok design was created by the sculptor Coert Steynberg and instantly became the coin's unmistakable hallmark.
22-carat fineness and why the coin is more durable
Unlike many newer coins with a fineness of 999.9, the Krugerrand is struck from a 22-carat alloy (916.7/1000). The remainder is copper, which gives the coin its characteristic warm, slightly reddish hue and, above all, greater resistance to scratches and wear. Importantly, the coin still contains exactly one troy ounce of pure gold – the added copper simply makes it a little heavier.
| Parameter | 1 oz Krugerrand |
|---|---|
| Metal | Gold (22-carat alloy) |
| Fineness | 916.7/1000 (91.67%) |
| Pure gold content | 1 troy ounce (31.10 g) |
| Total weight | 33.93 g |
| Diameter | 32.77 mm |
| Face value | no face value (legal tender by gold content) |
| Mint | South African Mint / Rand Refinery |
| First minted | 1967 |
Krugerrand sizes
Originally the Krugerrand existed only in the one-ounce version. Since 1980, smaller and more affordable fractions have been added:
- 1 oz – the classic and most traded size,
- 1/2 oz,
- 1/4 oz,
- 1/10 oz – suitable for smaller purchases and as a gift.
Why investors choose the Krugerrand
- Worldwide recognition – practically every precious-metals dealer knows the Krugerrand and will buy it back.
- High liquidity – it is among the most easily sold gold coins in the world.
- Durability – thanks to the copper alloy it withstands handling better than softer 999.9 coins.
- Usually a lower premium – as a mass-minted coin it often carries a favourable premium (the markup over the gold price).
Interestingly, the Krugerrand is one of the few investment coins with no face value struck on it. It is legal tender, but its value is derived directly from the current gold price. You will find a broad selection in our investment gold category.
Frequently asked questions
Is the Krugerrand worth less because it is only 916.7 fine?
No. The coin contains a full troy ounce of pure gold – the copper is added on top, which is why the coin is simply a little heavier. The amount of gold is the same as in 999.9 coins.
Why does the Krugerrand have no face value?
It was designed as a pure investment coin whose value is based on its gold content and the market price. Even so, it is legal tender in South Africa.
Is the Krugerrand subject to VAT?
Investment gold is exempt from VAT within the EU, and the gold Krugerrand meets this condition.
Is the Krugerrand suitable for beginners?
Yes. Thanks to its recognition, liquidity and durability, it is one of the safest choices for a first investment coin.
