The South African Gold Krugerrand - All You Need to Know

The South African Krugerrand was the world’s first bullion coin, first minted in 1967 to promote South African gold to the international market. The launch of the Krugerrand transformed the way individuals could own and trade gold and the Gold Krugerrand remains one of the most widely traded coins on the market today.

Krugerrand coins are available in gold, silver, and platinum versions in a range of weights, including a tenth Krugerrand (1/10 oz), quarter Krugerrand (¼ oz), half Krugerrand (½ oz), and standard Krugerrand (1 oz) coin sizes. The coins are considered legal tender in South Africa, although they do not have a face value in rand (ZAR). Instead, their value is based on their precious metals content.

Although they paved the way for many more bullion coins – many of which are made from higher purity metals – Krugerrands remain one of the most popular and iconic bullion coins.

History of the South African Krugerrand

The first South African Krugerrand was minted in July 1967 amidst Cold War tensions, the Vietnam conflict, and the collapse of the Gold Standard by Richard Nixon. At the time, most gold coins were targeted towards the wealthy. The Krugerrand, however, was designed to be a ‘working man’s coin’ that made gold ownership accessible to everyday people wanting to preserve their wealth.

During this period, South Africa mines produced 70% of the world’s gold. With the gold standard winding down, it was illegal in many countries to purchase gold ingots and bars for private ownership. In the United States, for example, citizens were not allowed to gold bullion coins but they could purchase foreign coins. The South African government saw this as an opportunity to market South African gold, so they created the Krugerrand as a product that would appeal to both collectors and investors.

Gold Krugerrands were a result of a collaboration between the South African Mint and the Chamber of Mines in South Africa. The first Gold Krugerrands were minted from 91.67% pure gold with the remaining 8.13% made up of copper. This added durability to the coin, making it more resistant to scratches, while also giving it a distinct reddish hue.

Each gold Krugerrand was sold at a premium of 5% over the spot price of gold. The name Krugerrand itself is a combination of two words: Kruger refers to former South African president, Paul Kruger, and Rand is a reference to South Africa’s unit of currency.

The Krugerrand was met with great success globally and inspired other countries, such as Canada, the United States, and the United Kingdom, to mint their own gold bullion coins. By the late 1970s, the Krugerrand dominated the global gold coin market and accounted for 90% of sales in 1980.

During the apartheid era, Gold Krugerrands faced international sanctions and import bans in Western countries. Their popularity dwindled as many gold investors were unable to access these coins in their countries. In 1994, the sanctions were lifted with the end of apartheid, however the Krugerrand’s popularity never recovered to what it was during its heyday. That said, the coin still remains a favorite amongst bullion investors and will always have a special place as the world’s first bullion coin.

In 2017, silver and platinum versions of the Krugerrand were released in celebration of the coin’s 50th anniversary. These coins have been issued each year since in the standard 1 oz size. Commemorative 'Premium Uncirculated' Gold Krugerrands were also released in the same year.

See: Why Buy Gold? Reasons to Invest in Physical Gold Bullion

South African Krugerrand design

The obverse of the South African Krugerrand features an effigy of Paul Kruger, the president of the Transvaal (South African Republic) from 1883 to 1900. The portrait, designed by Otto Schultz in 1892, pictures Kruger’s iconic beard with a resolute expression. Surrounding his bust are the inscriptions SUID AFRIKA and its English equivalent, SOUTH AFRICA, as a testament to the country’s bilingual heritage.

The reverse of the Krugerrand displays a pronking springbok, a mid-sized antelope and South Africa’s national animal. The design was created by renowned artist Coert Steynberg in 1947 and has also featured on numerous other South African coins over the years. Above the springbok is the inscription KRUGERRAND, and at the bottom are the words FYNGOUND 1 OZ FINE GOLD.

One of the most recognizable features of the Krugerrand coin is the distinct orange hue it gets from its copper content. The gold-copper alloy has been used for hundreds of years and adds durability that helps these coins retain their beauty over time.

Keep Reading: Pros and Cons of Buying Gold Bars vs Gold Coins

How big is a South African Krugerrand coin?

Gold Krugerrands are available in numerous sizes, from 1/10 oz up to 1 oz, while Silver and Platinum Krugerrands are only available in the standard one ounce weight. Below, we look at the weight and dimensions of gold, silver, and platinum Krugerrand coins.

How big is a Gold Krugerrand?

Gold Krugerrands are available in four sizes: 1/10 oz, ¼ oz, ½ oz, and 1 oz. Each coin’s weight corresponds to its gold content in troy ounces with the remaining weight coming from the copper alloy. This is why a 1 oz Gold Krugerrand will weigh slightly more than an ounce. All Gold Krugerrands are minted from 916.7 (22 ct) gold.

Below are the different sizes, weights, and dimensions of Gold Krugerrand coins.

SIZE	WEIGHT (GRAMS)	DIAMETER (MM)	THICKNESS (MM)
1 oz	33.93	32.77	2.84
½ oz	16.97	27.07	2.21
¼ oz	8.48	22.06	1.83
1/10 oz	3.39	16.55	1.19

How big is a Silver Krugerrand?

Silver Krugerrand coins are only available in a 1 oz size. Each Silver Krugerrand contains .999 fine silver and weighs 31.10 grams. 1 oz Silver Krugerrands have a diameter of 38.7 mm and a thickness of 2.84 mm. They have a face value of 1 South African Rand.

How big is a Platinum Krugerrand?

Platinum Krugerrands are only available in a standard 1 oz size, with each coin containing .999 fine platinum. Each 1 oz Platinum Krugerrand weighs 33.93 grams with a diameter of 32.69 mm and a thickness of 2.84 mm. They have a face value of 10 South African Rand.

How much is a Krugerrand worth?

The value of a South African Krugerrand is based on the market price of the gold, silver, or platinum contained within it. When the spot price of these precious metals changes, so does the value of the Krugerrand. You can calculate the value of a Krugerrand coin by multiplying the metal’s spot price with its weight in troy ounces.

See: Troy Ounce: Definition, History, and Conversion Table

How much gold is in a Krugerrand?

Each 1 oz Gold Krugerrand coin contains one troy ounce of gold (31.10 grams). Unlike many other bullion coins, such as the Canadian Maple Leaf, Gold Krugerrads are not made from pure 24-carat gold. Instead, they are made from 91.67% pure 22-carat gold alloyed with copper. The addition of copper gives Gold Krugerrands a distinctive reddish hue and adds to the durability of the coin.

Why should you invest in Krugerrands?

Despite their relatively lower gold purity compared to other gold coins, Krugerrands remain one of the most popular bullion coins in the world. Below are some reasons why people love to invest in South African Krugerrands:

Easy to trade

Krugerrands were specifically created to make gold investment accessible to everyone. Whether you’re just starting your investment journey or you’re an experienced precious metals investor, buying and selling Krugerrand is a straightforward and simple process. Because they are so widely recognized, you can trade Krugerrands in almost any financial market anywhere in the world.

Stable value

Although Krugerrands are considered legal tender in South Africa, their value is tied directly to the market price of their precious metals content (i.e. gold, silver, or platinum). This means they are not affected by fluctuations in the South African Rand (ZAR). Whether you choose to invest in a Gold Krugerrand, Silver Krugerrand, or Platinum Krugerrand, your investment will have enduring value.

Flexible investment options

Gold Krugerrand coins have the added flexibility of being available in various denominations and sizes, including 1/10 oz, ¼ oz, ½ oz, and 1 oz sizes. This not only makes them accessible for investors of all budgets, but also provides for easy liquidity when needed. For example, you can choose to buy or sell in small increments instead of cashing out your entire holdings.

Easily converted into cash

Krugerrands are highly liquid and can quickly be converted into cash when needed. Their global recognition makes them a trusted asset within the bullion market. To make sure your Krugerrands are genuine, be sure to purchase from a reputable precious metals dealer.

Learn More: What are the Best Gold Coins to Buy and Why? From Kruggerands to Maple Leafs

Buy South African Krugerrands online

South African Krugerrands are some of the most widely traded bullion coins in the world. With global recognition and a history of being the world’s first bullion coin, these gold, silver, and platinum investments deserve a spot in any precious metals portfolio. If you’d like to start investing in South African Krugerrand, you’re in the right place.

At StoneX Bullion, we stock Gold Krugerrand, Silver Krugerrand, and Platinum Krugerrand from various years of issue. With prices updated automatically each minute, you can browse confidently knowing you’re shopping at the most current precious metals spot price rate. We only use trusted shipping partners and securely package and insure all orders for safe delivery.

Browse our range of Krugerrands and other iconic bullion coins and start preserving your wealth today.