Krugerrand 1oz Gold Coin Characteristics
The Krugerrand 1oz gold coin was introduced by the South African government in 1967 without the purpose of being a legal tender in this issuing country. This bullion gold coin was the solution for the usage of the massive quantities of gold found in South Africa. After gaining the status of legal tender it was possible to trade this South African coin without applying the VAT.
It was a successful solution with the exception of the period when the apartheid was the political regime in South Africa. At that point, the Western countries declined the importation of the Krugerrand 1oz gold coin, barriers that were dissolved in 1994. And so the Krugerrand became the first internationally circulated coin.
The Krugerrand 1oz gold coin has a 22 carats purity which is the equivalent of 91.70% fineness. It is also characterized by a diameter of 32.7 mm and a thickness that measures 2.83 mm. It weighs 1 troy ounce or 31.10 grams and it was the coin that inspired the apparition of other new gold coins with the weight of 1oz like the Australian Kangaroo, the Panda gold coin, the American Eagle, and the Maple Leaf.
Krugerrand 1oz Gold Coin Design
Since the design of the Krugerrand 1oz gold coin was not considered as being such a beautiful one like the Australian gold Kangaroo or the Chinese Panda coin, a proof version was minted especially for collectors.
The obverse of the Krugerrand 1oz gold coin illustrates the portrait facing left of Uncle Paul as it was known in South Africa. His name was in fact Paul Kruger and was President of the South African Republic. The legend reads SUID AFRIKA and SOUTH AFRICA, the name of the issuing country in both languages.
The reverse of the Krugerrand 1oz gold coin depicts a springbok antelope in its habitat. The minting year, in our case 1978, is engraved on both sides of the antelope. At the top of the coin is the inscription KRUGERRAND and at the bottom FYNGOUD 1 OZ FINE GOLD.
Krugerrand 1oz Gold Coin Investment
Having a slightly smaller purity than other well-known bullion coins, which are among the top preferences of investors, the Krugerrand South African gold coin has a more affordable price. This is one thing that makes the Krugerrand 1oz gold coin such a desirable investment asset.
Another factor that contributes to the success of the Krugerrand 1oz gold coin is the small premium that is added to the gold spot price. We are referring to a premium of only 5%. The premium can surely increase when demand increases, when there are fewer coins available from a particular period.
If you are a collector and you desire a proof Krugerrand 1oz gold coin you should know that there are two characteristics that distinguishes it from the bullion Krugerrand. The first one is the number of serrations 220 for the proof versions and 160 for the bullion gold coin. The second thing that differentiates them is the increase price for the proof Krugerrand.
The Krugerrand gold coin is also available in smaller denominations compared to the Krugerrand 1oz gold coin like: 1/10oz, 1/4oz, and 1/2oz, which can also be traded on our website.