The Krugerrand is a South African gold
coin. The coin was first minted by the South African Mint in 1967 to help
market the South African gold. Within 15 years of the first coin being minted
the Krugerrand accounted for 90% of the global gold coin market. The coins were
named after Paul Kruger, the 5th President of South Africa.
The economic sanctions against South Africa
for its policy of apartheid made the Krugerrand an illegal import
in many Western countries during the 1970s and 1980s. In 1994 these sanctions
ended when South Africa abandoned apartheid.
Krugerrands have always been sought after,
since they offer the average person an opportunity to possess tangible gold. In South Africa it is illegal
to own a gold bar,
people can only own a gold ‘biscuit’, which is a
portion of gold, but even
this must be registered. Therefore
the Krugerrand is an ideal way for people to own physical gold.
Krugerrands are the best known of all the
modern one ounce gold bullion coins and compared to other one ounce bullion
they are more readily available in greater quantities and can generally be
bought at lower prices.
On the negative side some investors feel
Krugerrands do not have the same aesthetic appeal when compared to sovereigns
and they do not possess much in the way of historical interest. However, what
they do have is consistent high production quality and they are a cost
effective way for small investors to buy gold.
There are others who feel the Krugerrand is aesthetically unique, as
it comprises 11/12 gold and 1/12 copper, giving it a pinkish colour because
of the copper, added to improve durability of the coins whereas 24ct gold is
very pliable and can, over time, lose its shape and value.
The Krugerrand is measured according to its
gold content. The specific value to any point in time can be calculated based
on the current gold price.
A unique aspect of Krugerrands is that they
can be bought and sold in a variety of establishments, such as coin dealers,
banks, collectors, businesses, etc. This makes the coins a highly liquid
investment.
UKBullion.com stock a huge selection of
Krugerrand coins at competitive prices, ideal for a first time investment.
Some of the benefits of buying Krugerrands
include:
- Krugerrands protect the value of your money
- Krugerrands trade at a small premium above Gold price
- Krugerrands have 0% VAT
- Krugerrands are easy to store and transport
- Krugerrands can easily be traded for cashflow anywhere in the world
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