Krugerrand: low-premium gold bullion coin
More gold Krugerrands have been minted than all the other gold bullion coins combined, with some 42 million having been minted since 1967. Most Krugerrands were minted in the 1970s and early 1980s to meet the demand as gold bullion buyers flocked to gold coins as protection against inflation.
Minted in South Africa, the Krugerrand was first imported into the United States immediately after Americans regained the right to buy and own gold bullion on December 31, 1974. The rush to buy gold was on, and this gold bullion coins became an instant hit with gold buyers. Today the Krugerrand remain the most successful gold bullion coin ever minted.
Krugerrand gold bullion coins banned
However, in 1985, because the South African government was white-ruled, Congress passed a law that prohibited South Africa from selling Krugerrands in the U.S. By then, though, an estimated 22 million had already been imported, and the ban did not affect the buying and selling Krugerrands that were already in the United States. Today an active market continues for Krugerrands, and thousands trade daily.
In 1994, Congress lifted the importation ban, and gold bullion Krugerrands were again offered for sale in the U.S. By then, however, Gold Eagles had captured the U.S. gold bullion coin market, and the South African effort to promote Krugerrands in the U.S. ended. Today, Krugerrands sell at prices below Gold Eagle prices and remain favorite gold coins for gold buyers seeking to buy bargain bullion gold.
Krugerrands come in four sizes
Krugerrands come in four sizes: 1-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce. All four gold coins carry the same design. 1-oz Krugerrands are by far the most popular and generally can be found in large quantities. The fractional-ounce Krugerrands are not always available, but when fractional-ounce Krugerrands are available they are significantly lower priced than fractional-ounce Gold Eagles, which come in the same four sizes.
Krugerrands are 22-karat gold, being alloyed with copper. (Krugerrands were so popular that when the U.S. Mint designed its Gold Eagles, the Krugerrand’s dimensions and alloy were used.) Krugerrands are legal tender coins in South Africa.
Krugerrand value: active market
Krugerrands enjoy the most active secondary market of all modern gold bullion coins, with thousands changing hands daily. Most Krugerrand orders are filled with mixed dated coins. Occasionally tubes contain Krugerrands dated the same year.
If you would like to discuss buying or selling Krugerrands or any aspect of the gold and silver markets, please call. We take calls 7:00 a.m. to 5:00 p.m. MST, Mondays through Fridays. Call toll free 1-800-528-1380.
The minimum orders for bullion purchases at CMI Gold & Silver Inc. are five ounces of gold or platinum; ten ounces of palladium; 200 ounces of silver. Payment by wire transfer enables us to ship more quickly. See Doing Business With CMIGS for more information about buying and selling precious metals with CMI Gold & Silver Inc.
Although our’ minimum gold bullion order is five ounces, our Gold Specials Page often offers gold bullion in quantites less than the five-ounce minimum.