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South African Krugerrand Gold Coins

November 18, 2009 – South African Krugerrand gold coins were first minted in 1967, and their purpose was to give investors worldwide an affordable and accessible way to privately hold gold. Krugerrands were minted for circulation as currency, so the South African Mint adds a substantial amount of alloy to the coins to make them more durable.

South African Krugerrand gold coins are unique because they carry no face value. Most modern-day bullion coins, like the $50 Saint Gaudens and the $50 Canadian Maple Leaf, carry a fixed legal tender value. This “face value” is usually much less than the bullion coin is actually worth. Krugerrands have no face value, so their worth is based on the present gold spot price. In other words, South African Krugerrand gold coins are legal tender for the value of their bullion metal.

These coins were also the first to contain one full troy ounce of gold, because in 1967 many other nations did not mint bullion coins. The United States was on the Gold Standard, and it was illegal for US citizens to own gold bullion. Once President Richard Nixon removed the United States from the Gold Standard in 1971, many nations began operating mints and producing bullion coins that contained a troy ounce of gold or more.

Krugerrand coins were boycotted for many years because of the apartheid situation in South Africa, but that changed in 1994 and the top-producing gold country in the world has since made the Krugerrand the most widely owned bullion coin in the world. Through last year, over 46 million ounces of the Krugerrand series have been sold worldwide.

The South African Mint began producing fractional Krugerrands in 1980 in ½ ounce, ¼ ounce, and 1/10 ounce denominations, and these coins are widely valued by US investors as wise short-term positions in the gold market. To receive a free information kit about the Krugerrand or any other gold coin investment, contact us directly or give us a call today. 

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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