South African Krugerrand
The South African Krugerrand is one of the oldest gold bullion coins in circulation, at least when compared to other modern favorites like the Eagle, Panda, and Maple Leaf. This coin was first minted back in 1967, a good 15-20 years before most of the other nations ever decided to produce their own gold coins. The coin is produced in four different primary sizes each and every year. These sizes include 1/10th oz., 1/4 oz., 1/2 oz., and 1 ounce variations.
Unlike most other bullion that was largely created to generate revenue, the Krugerrand was produced in order to help spread the supply of South African gold. As you may or may not know, South Africa is a huge area for gold mining, and as a result the supply of the precious metal is one of the most plentiful in the world.
This coin was so dominant and out dated the other coins by such a significant amount of time that it actually managed to comprise nearly 90% of the entire gold coin market up until around 1980 or so. Imagine going to an online gold website or your local coin dealer and having nothing but Krugerrands to choose from. As odd as that might sound, this was pretty much the case until the United States, Canada, and other countries decided to get in on the act.
Gold Krugerrand Design
The design of the Gold Krugerrand is very distinct. On the reverse of the coin is an animal known as the springbok antelope. This is the most identifying element of the coin, making it immediately stand out from all other gold coins.
The obverse side features Paul Kruger in a side shot portrait. Beware of imitations of this coin that exist. Due to its extreme popularity, there have been many fakes and reproductions floating around many different markets. Look for proper markings on the coin, including the year of production, "KRUGERRAND" written on the reverse side, and the minted weight of the coin itself. Compare a known authentic issue of the coin to any potential item you might want to buy before you make a leap of faith.
Cost of Gold Krugerrands
Because of their abundance, Krugerrands are quite affordable. In most cases, they will not cost much more than $25-$50 over the spot price of gold. When you compare this to just about any other type of gold coin, you will realize how good of a deal this is. Most coins will cost double this much if not a lot more.
Proof Krugerrands are not even going to cost you an arm and a leg, of course all things are relative. Depending on the year that you are buying, 1 oz. proof coins can be found for $500 or less over spot, which is quite a deal in the grand scheme of things.
Buying Gold Krugerrands Online
Krugerrands are one of, if not the easiest coin to find for sale online. As mentioned previously, however, you should be very careful of anyone that you are buying from. Take proper precautions to ensure that you are buying genuine Krugerrands and not some sort of replica or complete fake.
The best way to spot a fake is to look for deals that seem too good to be true. If someone is selling Krugerrands at spot, you can all but guarantee that something is not quite right. Identifying an authentic Krugerrand is not a challenge, so it is more than worth your time and effort to make sure that you are buying the real thing. When shopping for higher end Gold Krugerrands, graded coins are absolutely the way to go. They will not only protect your coin from harm, but they will also give you peace of mind knowing that it is indeed a real, South African-issued coin.
