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The history of the Krugerrands is one of the most fascinating. People widely hold Krugerrands as gold bullion coins, as international exchanges accept and trade them for conversion into any currency. The Rand Refinery and South African Mint introduced these coins in 1967, naming them after the former President of South Africa, Paul Kruger.
The design of each coin features Kruger’s portrait in addition to a springbok antelope, which is the national animal of South Africa. Meanwhile, their namesake reflects the country’s currency, the rand. Thanks to their international appeal, Krugerrands have been a popular choice for collecting, investing, and trading gold over the past five decades.
The History of the Krugerrand
The South African Krugerrand coin has an intriguing and lengthy history, beginning with its minting in 1967 to stimulate the South African gold industry. Over time, it became widely owned and traded around the world as a bullion coin. It acquired its “Kruger” prefix because of its naming after Paul Kruger, the President of the old South African Republic.
Each coin contains one troy ounce of pure gold along with a small amount of copper, adding durability, and dealers worldwide widely recognise it. Over the last 50+ years, producers have manufactured over 50 million Krugerrands, and even after all these years of service, it continues to stand out as one of the most sought-after coins due to its high quality and reliability.
| Year | History |
|---|---|
| 1967 | The first year of the Gold Krugerrand’s production with 40,000 pieces made. The coin was introduced to help market South African gold [1][3]. |
| 1970 – 1980 | Production of the Krugerrand increased, dominating over 90% of the global gold coin market [3]. |
| 1980s – 1990s | Popularity of the Krugerrand decreased due to the international sanctions against South Africa’s apartheid policy [1]. |
| 1990s | The sanctions were lifted, and the Krugerrand regained its status as one of the world’s leading gold bullion coins [1]. |
| 2017 | The Rand Refinery began minting silver versions of the Krugerrand [3]. |
Silver Krugerrands
Silver Krugerrands, first released in 2017 by the South African Mint, are a special addition to their gold bullion coins. Composed of one troy ounce of 999 fine silver and bearing the likeness of Paul Kruger, they make an ideal collector’s item due to their unique design and rarity.
The obverse side shows a representation of Boer leader and president Paul Kruger, while the reverse displays a young springbok antelope. Those looking to invest in precious metals should consider silver Krugerrands as a long-term choice; due to their purity and weight, they are priced fairly compared to similar products on the market.
Gold Krugerrands
Gold Krugerrands have a fascinating past going back to 1967. The South African Mint designed this iconic coin as a means for private gold ownership. In 1974, President Gerald Ford legalised Krugerrand ownership for US citizens, boosting their global popularity.
The Gold Krugerrand quickly became the most widespread and actively traded gold coin in the world. For 50+ years, this treasured gold coin significantly impacted economic growth and cultural history through investments and collections.
The Krugerrands Design
The Krugerrand is a unique international coin that combines South African symbolism with the nation’s currency. The name combines “Rand,” South Africa’s currency, and Paul Kruger, a vital figure in the former Republic.
His face appears on the obverse side of the Krugerrand coin. The reverse side displays a springbok, an iconic antelope with regional significance in South Africa and Africa. Since its 1967 minting, the Krugerrand endures as a reliable investment and captivating South African historical representation.
The Success of the Krugerrand
The global recognition of the South African Krugerrand led to gold bullion coin creation in various nations. Canada introduced the gold Maple Leaf in 1979, followed by China’s Panda one-ounce gold coin three years later.
Tracking Krugerrand demand reveals steady growth in the 1970s, followed by a decline in the late 1980s and 1990s. Production levels then began to increase around 1999 and reached peaks of up to six million coins per year.
By 2018, more than 50 million ounces of gold Krugerrands had been produced. This made them by far the most popular gold bullion coins in the world at one point, with 90% of all bullion coins being Krugerrands.
The mining house added fractional Krugerrands (1/2, 1/4, and 1/10 ounces) alongside the original single-ounce editions. All this has come together to make Krugerrand’s global popularity insurmountable even today.
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How Are They Made?
The South African Mint produces highly sought-after gold bullion coins known as Krugerrands, designed to withstand wear and tear. They have a 91.67% gold, 8.33% copper alloy (22 karats), weighing 1 1/11 ounces, containing a full troy ounce of gold per coin.
This combination renders Krugerrands more durable than pure gold bullion coins, helping them maintain their desirability among collectors. Krugerrands’ copper element imparts an orange hue, distinguishing them from regular gold bullion coins and other precious metals.
Key Takeaway
The history of Krugerrand gold coins is rich and captivating. The South African Mint introduced these coins in 1967, naming them after former South African President Paul Kruger. Featuring Kruger’s portrait and a springbok antelope, Krugerrands are accepted and traded globally. Thus, providing a way to own, invest in, and trade gold. Over 50M coins, including silver Krugerrands, symbolise South Africa’s history and are favored by precious metal enthusiasts. The gold-copper alloy boosts durability and global success sparks creation of similar gold coins. Krugerrands’ enduring popularity continues as a testament to their quality, design, and historical significance.
