A Guide to Investing in South African Gold Krugerrand Coin

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The gold Krugerrand is minted by the South African government and is among the first bullion gold coins to be minted in the world, starting in 1967. Krugerrands are the most frequently traded gold coins in the international market. It has a legal tender status in South Africa, and it was designed to derive value exclusively from the price of gold at the time of trading. Therefore, 1 oz South African Gold Krugerrand Coin price depends on the spot price of 1 oz of gold. If you buy gold online for investment, then the 1 oz South African Gold Krugerrand Coin is a great place to start with as the most recognized gold bullion coin in the world.

About Gold Krugerran Coin – Background 

The Krugerrand coin bears the image of Paul Kruger, former president of South Africa. Its name is an amalgamation of Paul Kruger’s surname and South Africa’s national currency – Rand. The Krugerrand is made with 22karat gold – that is, 91.67%, gold, with 8.33% copper alloy. The new Krugerrands are issued by the South African Reserve Bank (SARB). It can be purchased in sizes of –

  • 1 oz South African Gold Krugerrand Coin 
  • 1/2 oz South African Gold Krugerrand Coin
  • 1/4 oz South African Gold Krugerrand Coin
  • 1/10 oz South African Gold Krugerrand Coin

In 1970, South Africa was the world’s largest gold producer, holding more than 75% of world’s gold reserve. In this period, Krugerrands gained traction in the global bullion market and became the first choice for investors. In the 1980s, Krugerrands accounted for 90% of the world’s gold coin market. It became associated with the idea of security to an extent where people began hoarding Krugerrands during slumps causing scarcity in the markets. Today, the gold production in South Africa has slumped by a great extent.

Investment in 1 oz South African Gold Krugerrand Coin

Krugerrand continue to enjoy being popular among gold investors and are considered to be a safe start to buy gold online for investment. It has equal appeal among private investors and institutional investors who wish to make direct investment in gold bullion, hedge their portfolios against the US Dollar, or generally diversify their portfolio. precious metal investment, especially in gold is traditionally considered a safe haven option. It acts as insurance against market fluctuations in currency markets and share markets. Precious metals have historically held their value against economic downturns and deflations.

The appeal for gold Krugerrands lies largely in their small size, which makes it easy to store them securely. 

Some appealing factors to note on why to buy gold online – 

  • Liquidity of gold market
  • Investment in 1 oz South African Gold Krugerrand Coin is not dependant on performance of the gold mine
  • Gold has positive track record in terms of rise in value as it is a non-renewable natural resource
  • Gold has a low-to-negative correlation with other asset classes, making it an effective portfolio diversification tool.

To trade in 1 oz South African Gold Krugerrand Coin 

The 1 oz South African Gold Krugerrand Coin price is few percentage points over the gold spot price and is sold at few percentage points under the spot price of gold from specialty bullion and coin dealers. Since the 1 oz South African Gold Krugerrand Coin is easy to store, transport, buy and sell compared to a gold bar, it is preferred choice amongst investors.

You can buy gold online for investment, and the 1 oz South African Gold Krugerrand Coin will be delivered in very secure package at your doorstep so that your investment details remain private.

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