Rand Refinery: The Story of the Refinery Behind the Krugerrand
Behind one of the best-known bullion coins in the world, the Krugerrand, stands the South African Rand Refinery. It is the largest integrated single-site precious metals refining and smelting complex in the world. In this article we look at its history and the role it plays in the global investment gold market.
Founded in 1920
Rand Refinery was founded on 27 November 1920 as a private company, registered by the Chamber of Mines of South Africa with capital from mining companies. The aim was to refine gold from South African mines in the country itself, instead of sending raw gold to London for refining. Construction began in August 1920 and was completed in December 1921, with an initial annual capacity of 373 tonnes of gold. The impact on London was clear: by 1922, shipments of South African raw gold to London had practically stopped.
Around a third of all gold ever mined
Since 1920 Rand Refinery has refined an estimated 50,000 tonnes of gold or more – roughly a third of all the gold ever mined in the world. No other single-site precious metals refinery comes close to that volume.
1967: the birth of the Krugerrand
A key milestone came in 1967, when, together with the South African Mint, the Krugerrand was launched – the first modern bullion gold coin weighing 1 ounce. The aim was to make South African gold accessible to private investors around the world. The Krugerrand became the model for all later bullion coins, including the Wiener Philharmoniker and the Britannia.
LBMA accreditation and Good Delivery
Rand Refinery is on the LBMA Good Delivery list – among the refineries whose bars are accepted on international wholesale markets without further testing. What LBMA accreditation means is explained in the article What is the LBMA and Good Delivery certification.
The Krugerrand at GOLDU
At GOLDU you can buy the Krugerrand in its silver version – the 1 oz silver Krugerrand, minted since 2017. A comparison with other silver coins is in the article Silver coins: American Eagle, Maple Leaf, Krugerrand.
Frequently asked questions
Does Rand Refinery make bars as well, or only coins?
Rand Refinery mainly refines gold and is best known for working with the South African Mint on the Krugerrand. Historically, however, it has also supplied refined gold for bars and other products to the world market.
Is Rand Refinery still in operation?
Yes, the refinery in Germiston near Johannesburg has operated continuously since 1921 and remains one of the key players in the global precious metals market.
Why does LBMA accreditation matter to buyers?
Good Delivery accreditation guarantees that the refinery meets strict international standards of purity, traceability and responsible sourcing, which increases the trustworthiness and tradability of the product.
About the author
Adolf Baumann, analyst at Baumann Group a.s. (GOLDU), has been working with precious metals for over 30 years. He has seen euphoria, crashes and panic on the markets – and he still enjoys it. He explains in plain language what moves the price of gold and silver and how to handle them without unnecessary mistakes. His weakness? He refuses to wear a suit.
