While many gold bullion products have been released over the last 50 years, few have captured the imagination as much as the South African Krugerrand gold coins. Named after Paul Kruger, the first president of South Africa, they were designed for circulation rather than collection but have become prized for both.

Origins of The Krugerrand

This coin was first released by the South African Mint in 1967. Its purpose was to encourage the citizens of South Africa to acquire gold and was intended for circulation. This in itself is unusual as most governments of the world prefer their citizens to use paper money as it allows them to print money whenever they want to pay for various services or projects without directly taxing the people.

The Krugerrand was the first gold bullion coin to be struck and its great success inspired the creation of rival coins such as the Canadian Maple Leaf and Gold American Eagle. Apartheid in South Africa led to sanctions which inhibited the government’s ability to export these coins, increasing their demand at the time. The sanctions were finally removed by 1994.

Design Characteristics

This coin has a number of characteristics which are not seen in other gold coins. For instance, it is struck with a resilient alloy that while slightly reducing its gold purity makes it better for handling and circulation. It also doesn’t feature a face value, something that is unheard of in most bullion coins. The front side displays a profile of Paul Kruger, who was president of South Africa for four terms, while the back side is arguably the coin’s most famous, as it shows the springbok antelope, which is the national animal of South Africa. This makes the Krugerrand the first coin struck in Africa to feature one of the continent’s many animals.

The Krugerrand has been released in four weights, which are 1/10 oz, ¼ oz, ½ oz and 1 oz. This is beneficial to the gold collection community as it allows the coin to be purchased for various prices and makes it more affordable. The Krugerrand is also recognized worldwide due to these consistent weights and has been used by investors for many years. As is the case with other gold coins, Krugerrands can be used as protection against inflation and uncertainty and are easy to sell, buy and transport.

Impact of the South African Krugerrand Gold Coins

For many years, the Krugerrand reigned supreme as it was the only bullion coin to be widely circulated internationally. To put this into perspective, by the year 1980 it was estimated that the Krugerrand made up about 90 percent of the worldwide gold market. No other gold coin has achieved this success in modern times. Interestingly enough, the coin was produced at its highest level during apartheid, reaching a level of 6 million units annually during 1978. Gold experienced a bull market during the 1970s and it was the Krugerrand that became the world’s number one coin among investors, with over 20 million being imported into the United States.