The South African Krugerrands are an investment grade coins that can come in handy when looking for gold investments. The South African Krugerrands are an official South African bullion coin that contain 1 ounce of pure gold. As the perfect gold investment, Krugerrands have an inherent gold value that retails at the existing gold prices in the bullion market.
Therefore, the price of Krugerrands may increase or decrease depending on the prevailing price of gold. However, the Krugerrands also have extra value for collectors, as they are a rare collectors’ item. A Krugerrand
will be priced depending on its type, fine gold content and its rarity.
are common gold bullion and are widely preferred by gold investors. As a renowned gold bullion world over, the Krugerrands can be found in equally smaller sizes, such as half Krugerrand, quarter Krugerrand and the 1/10th Krugerrand. These denominations contain half an ounce of gold, a quarter an ounce of gold and a one tenth of an ounce of gold correspondingly.
As South Africa’s official gold bullion, the Krugerrands were first minted and issued in 1967. The Krugerrand
is an official legal tender coin and can be used as currency in South Africa. However, due to the high volatility of gold prices, the Krugerrands were never issued with a face value.
On the contrary, the Krugerrands’ purchasing power as legal tender bullion arises from the prevailing market value of gold. Therefore, Krugerrand prices change with the changing price of gold. The South African Mint opted against a face value due to the fact that in some situations, the Krugerrands could have excess face value with little gold content.
On the contrary, the mint tried to avoid situations in which the Krugerrand
could have a face value that is smaller than the gold content therein. Typically, the Krugerrand weighs 33.93 grams and is mostly made using 22 karat gold. The Krugerrand karatage reflects a gold fineness of 91.67%. But even though the Krugerrand has only 1 ounce of gold, the coins actually weigh in excess of 1 ounce.
The Krugerrands’ excess weight arises from the alloying of gold with other metals to make it stronger and durable.
Invest In Krugerrands
Gold has always been a favorite metal for investment. With the current high price of gold, there has never been a better time to sell gold. Gold offers one sure way to protect the value of money from uncertainties such as inflation that can corrode paper currencies. Gold investments are favored globally because gold cannot be manufactured and is accepted world over as a payment method.
It is accepted globally that gold has an inherent value. What this means is; when you invest in gold, even though its price may fluctuate frequently, it will increase over time. On the other hand, national currency values can be eroded and lose value considerably in uncertain economic situations.