Krugerrand

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Krugerrand
South Africa
Value 1 troy oz. fine gold
Mass 33.93 g (1.09 troy oz)
Diameter 32.6 mm (1.28 in)
Thickness 2.84 mm (0.11 in)
Composition Gold (91.67% Au, 8.33% Cu)
Years of minting 1967 – present
Obverse
Krugerrand 1968 82001367.jpg
Design 1984 by Otto Schultz - Profile of Paul Kruger with "SUID-AFRIKA·SOUTH AFRICA" in the legend.
Reverse
Design 1984 by Coert Steynberg - A springbok antelope with the mint date in the field. The legend is inscribed with "KRUGERRAND" and the gold weight.

The Krugerrand (Afrikaans pronunciation: [ˈkryxərˌrant]; English /ˈkrɡəˌrænd/ or /ˈkrɡəˌrɑːnd/[1] is a South African gold coin, first minted in 1967 to help market South African gold and produced by the South African Mint. By 1980 the Krugerrand accounted for 90% of the global gold coin market. The name itself is a compound of "Kruger" (the man depicted on the obverse) and "rand", the South African unit of currency. During the 1970s and 1980s some Western countries forbade import of the Krugerrand because of the association with the apartheid government of South Africa. The Krugerrand today is a popular coin among collectors.[2]

Production levels of Kruggerands significantly varied during the last 50 years. During the period 1967-1969 around 40,000 coins were minted each year. In 1970 the amount rose to 211,018 coins. Over one million coins were produced in 1974 and in 1978 an absolute record of six million Kruggerrands were produced. Following the end of apartheid the production dropped to 23,277 coins in 1998 and since then levels have increased again, albeit not getting to the amounts before the introduction of the international sanctions.

History[edit]

The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. Unusual for bullion coins, the Krugerrand was given the status of legal tender[3] or currency. To this end, it was minted in a more durable copper-gold alloy. Despite the coin's legal tender status, 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. These sanctions ended when South Africa abandoned apartheid in 1994.[4][5][6]

By 1980 the Krugerrand accounted for 90% of the global gold coin market.[7] That year South Africa introduced three smaller coins with a half ounce, quarter ounce, and tenth ounce of gold.[8]

Krugerrand coins containing 46 million ounces of gold have been sold.[9]

Variations and imitations[edit]

During the great bull market in gold of the 1970s, the gold Krugerrand quickly became the No.1 choice for investors worldwide wanting to buy gold.[10] Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone.

This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1981, the Chinese Gold Panda in 1982, the American Gold Eagle in 1986, and the British Britannia coin in 1987.[11]

Private mints have also attempted minting gold and silver bullion rounds (the term coin denotes legal currency) in the style of the Krugerrand. The rounds often depict Paul Kruger and a springbok antelope, some even blatantly copying the design of the Krugerrands themselves, though the inscriptions are altered. These bullion rounds are not offered by the South African Mint or the Government of South Africa, and are therefore not official, have no legal tender value and cannot technically be considered coins.

Properties[edit]

The Krugerrand is 32.77 mm in diameter and 2.84 mm thick. The Krugerrand's actual weight is 1.0909 troy ounces (33.93 g). It is minted from gold alloy that is 91.67% pure (22 karats), so the coin contains one troy ounce (31.1035 g) of gold. The remaining 8.33% of the coin's weight (2.826 g) is copper (an alloy known historically as crown gold which has long been used for English gold sovereigns), which gives the Krugerrand a more orange appearance than silver-alloyed gold coins. Copper alloy coins are harder and more durable, so they can resist scratches and dents.

The coin is so named because the obverse, designed by Otto Schultz,[12] bears the face of Boer statesman Paul Kruger, four-term president of the old South African Republic. The reverse depicts a springbok, one of the national symbols of South Africa. The image was designed by Coert Steynberg, and was previously used on the reverse of the earlier South African five shilling coin. The name "South Africa" and the gold content are inscribed in both Afrikaans and English (as can be seen on the pictures of the coin).

Since September 1980, Krugerrands have also become available in three different sizes containing exactly 1/2 ounce, 1/4 ounce and 1/10 ounce of pure gold.[13]

The word "Krugerrand" is a registered trade mark owned by Rand Refinery Limited, of Germiston.

Specifications
Denomination Diameter*
(mm)
Thickness*
(mm)
Weight
(g)
Fineness Gold content Edge
reeded
(g) (oz t)
1 oz 32.77 2.84 33.930 22 karat 91.67% 31.103 1.000 160**
1/2 oz 27.07 2.215 16.965 22 karat 91.67% 15.552 0.500 185
1/4 oz 22.06 1.888 8.482 22 karat 91.67% 7.776 0.250 150
1/10 oz 16.55 1.35 3.393 22 karat 91.67% 3.110 0.100 115
* Maximum dimensions

Proof Krugerrands[edit]

The South African Mint Company produces limited edition proof Krugerrands intended to be collectors' items. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 while bullion coins have 160.[14]

Culture[edit]

Depositing Krugerrands in Salvation Army donation kettles has become an annual tradition of one or more anonymous benefactors in several cities around the United States, including Atlanta, GA, Seattle, WA, Fargo, ND, Bay City, MI, Kokomo, IN, and Tulsa, OK.[15] [16][17]

References[edit]

  1. ^ "Dictionary.com". Dictionary.com, LLC. Retrieved 11 August 2012. 
  2. ^ "The Ever Popular Krugerrand". http://www.americansilvereagletoday.com. 2010. Retrieved 30 August 2011. 
  3. ^ "South African Gold Krugerrand History". KrugerrandGoldCoins.com. Retrieved 11 August 2012. 
  4. ^ Yearbook of the United Nations (Volume 45 ed.). United Nations. 1991. p. 114. OCLC 1768016. 
  5. ^ Yearbook of the United Nations, Volume 45, p. 114, at Google Books
  6. ^ "Most South African Sanctions Lifted: ML&B White Paper - Morgan Lewis" (PDF). www.morganlewis.com. Philadelphia, PA: Morgan, Lewis & Bockius LLP. 1991. p. Page 2. Retrieved 30 July 2011. 
  7. ^ Tom Bethell (4 February 1980). "Crazy as a Gold Bug". New York 13 (5) (New York Media). p. 34. 
  8. ^ "2010 Krugerrand Series". www.samint.co.za. South Africa: The South African Mint Company. 2010. Retrieved 30 July 2011. 
  9. ^ "Krugerrands". Rand Refinery. Retrieved 6 June 2009. 
  10. ^ "Gold Krugerrands: Buying gold coins - 17 August 2007". Bullion Vault. Retrieved 11 August 2012. 
  11. ^ "South African Krugerrand". Birch Gold Group. Retrieved 26 June 2013. 
  12. ^ American Numismatic Association (1997). The Numismatist 110. American Numismatic Association. p. 765. Retrieved 30 November 2011. 
  13. ^ "Krugerrands". Rand Refinery (Pty) Limited. Retrieved 11 August 2012. 
  14. ^ "2008 Krugerrand Series". South African Mint Company. Retrieved 6 June 2009. 
  15. ^ Glenn, Stacia (22 December 2011). "Krugerrand dropped into Salvation Army kettle". The Seattle Times. Retrieved 26 June 2013. 
  16. ^ "For fifth year in a row, mystery person drops a gold coin in Salvation Army kettle". AP. 13 December 2013. Retrieved 14 December 2013. 
  17. ^ "Gold Krugerrand appears in a Salvation Army red kettle". WDAY. 20 December 2012. Retrieved 26 June 2013. 

External links[edit]