If you collect coins or even have a passing interest in the subject, you will find the South Africa 1 oz gold Krugerrand coin to be quite fascinating. The coin debuted nearly 60 years ago when South Africa was looking for ways to market its gold. By 1980, the Krugerrand represented an incredible 90 percent of the global coin market.
How the Krugerrand Got Its Name
The Krugerrand coin has quite a unique name for good reason. Krugerrand is the combination of two separate words. Kruger is the last name of Paul Kruger, a famous Boer statesman. His likeness is actually featured on the coin. Rand is a unit of South African currency. Meld the two words together and you have Krugerrand.
Why the Coin Used to be Controversial
Those who lived in the 70s and 80s might remember the Krugerrand for its role in global politics. The coin was actually banned from import in a number of different Western countries throughout these decades. Western governments did not approve of South Africa’s controversial apartheid form of government so they banned the Krugerrand in response. The ban on the coin was finally lifted in 1995 when apartheid ended.
The number of Krugerrand coins produced each year differs by a number of factors. The fact that all different amounts of production have occurred in the past adds to the Krugerrand’s intrigue. Some argue that its production variations increase Krugerrand value. Others believe that these varying levels give it more sentimental value, especially for those produced in years when production dipped.
Rewind the clock back to the 1960s and you will find that around 40,000 Krugerrands were produced. Fast forward to the early 1970s and over 200,000 were made. By the middle of that decade, over one million coins were in existence. By the end of the 70s, about six million were produced. Yet the coin’s production levels dropped to just over 20,000 before the dawn of the new millennium. The coin has been printed at a comparatively high frequency since the beginning of the 2000s yet these levels do not compare to those attained before global sanctions against South Africa were implemented.
If you were to add up the amount of gold in the world’s current supply of Krugerrand coins, you would find that it totals 46 million ounces. Yet there are variations of the coin with specific amounts of gold. One has 1/10 ounce of pure gold while a second version has ¼ ounce and a third version has ½ ounce.
The Motivation for the Krugerrand’s Creation
The logic behind creating the Krugerrand was that it served as a way to increase the amount of gold in the hands of everyday people while simultaneously boosting the marketability of gold. Contrary to most other bullion coins, the Kruggerand was actually labeled as legal tender. This is precisely why the coin was minted in an uber-durable copper-gold alloy. The Kruggerand’s fortitude, beauty, and history have made it quite desirable across South Africa as well as the rest of the world. It is commonplace for South Africans to give the one-ounce gold Krugerrand coin as a gift to a family member, friend, or co-worker.
The Krugerrand weighs 1.0909 troy ounces. This is the equivalent of 33.93 g. It has a thickness of 2.84 mm and a diameter of 32.77 mm. In terms of its minting source, it is derived from gold alloy with 91.57 percent purity. Such gold alloy is the equivalent of 31.1035 g / 22 karats worth of gold. The remaining 8 to 9 percent of the Krugerrand’s weight is composed of 2.826 g worth of copper alloy. This copper gives the Krugerrand a bit of an orange hue, especially when put side by side with more traditional gold coins that are made with a silver alloy. One of the main advantages of using copper alloy is its sturdiness. Go ahead and drop the Krugerrand from a considerable height, pick it up and you will find that it has little to no damage.
The Krugerrand’s Look
The image of Paul Kruger was chosen for the Kruggerand for good reason. He served as the President of the South African Republic across four terms. Kruger’s likeness is illustrated on the coin by Otto Shultz. The other side of the coins features a springbok design by Coert Steynberg. The springbok was chosen as it is one of South Africa’s signature images. The springbok was also featured on South Africa’s 5 shilling coins that existed years before the Krugerrand. Other Krugerrand aesthetics include inscriptions in English and Afrikaans to show its gold content. The coin’s home nation of South Africa is also inscribed.
MyGold is on the Prowl for the South Africa 1 oz Gold Krugerrand Coin
Anyone who owns a South Africa 1 oz gold Krugerrand coin will be happy to know that MyGold is looking for sellers. We are actually interested in just about every type of gold coin. You won’t find a better Kruggerand price in all of New Zealand. We encourage all Krugerrand coin owners to contact us. Our team will consider the state of the market along with the merit of your coin(s) and get back to you as soon as possible.
MyGold wants to do business with New Zealanders from all different towns and cities. Whether you live in Tauranga, Wellington, Auckland, Christchurch, Hamilton, or anywhere else in New Zealand, we are interested in your coins.