Krugerrand Coin

• On the Krugerrand Gold coin, the springbok seems to be jumping into action, while President Kruger is a reminder of 19th century South African political and military affairs. 1 oz Gold Natura Coins In 1994, the South African Mint began the new Gold Natura series.
• South African gold is world renowned and the Krugerrand is the iconic South African Coin. First minted in 1967, this coin accounted for 90% of the global gold coin market by 1980. The wild success of the Krugerrand inspired a host of other gold-producing countries to issue Gold Bullion Coins and Ingots, including the Chinese Gold Panda Coin, and the Canadian Maple Leaf Coin.

Introduced in 1967, the South Africa Gold Krugerrand became the vehicle for private gold ownership. In the 1970's, its popularity boomed and it was the number one choice of gold investment among collectors and investors. Economic sanctions, due to the apartheid, made the importing of the South Africa Gold Krugerrand illegal but this ended in 1991, when South Africa abandoned the apartheid. The South Africa Gold Krugerrand is 22 karats, 90% pure gold, 10% copper and contains one ounce of pure gold. Only sold in brilliant uncirculated or proof condition, the South Africa Gold Krugerrand will add a nice value to any gold collection.

The South Africa Krugerrand has had a stagnant minting history and collectors are quick to find that the most common dates are from the late 1970's to 1980's. This is because from 1967-69, only 40,000 South Africa Gold Krugerrands were minted each year then that number significantly increases every year after that. By 1978, there were 6 million South Africa Gold Krugerrands being produced and by 1980, this coin reigned 90% of the global gold market. 1980 was also the year the South African Mint decided to add other fractional coins: half, quarter, and tenth ounce.

Design History of South African Krugerrand

The South African Krugerrand's design was constructed by two artists, instead of one. The obverse was designed by Otto Schultz and features the side profile portrait of Paul Kruger. Kruger remains one of the most divisive and well-known political figures from the 19th century. Seated as the 3rd president of the South African Republic, Kruger served for almost 10 years as Commander in Chief. His name was linked to the rand, which is the South African currency, and together make the Krugerrand.

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The reverse presents the national animal of the South African Republic: the Springbok antelope. This design was done by Coert Steynberg, featuring the antelope effortlessly galloping through a field. The coin's purity, weight, and year of issue are also engraved on the reverse. The South African Krugerrands were minted with 160 serrations around the edge of the bullion coin and over 200 serrations on the proof coin, resulting in a truly unique coin.

Variations of the South African Krugerrand

The South African Krugerrand began as just a 1 troy oz gold coin but due to extreme demand, smaller increments were introduced in 1980. Four versions: 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz are all still minted today. There were also special edition proof coins minted. The main difference between the proof coins and the bullion is the amount of serrations around the edges.

Sheldon Grading Scale

Dr. William Sheldon was an American psychologist by trade and a numismatist as a hobby. In 1948, Sheldon developed the Sheldon Numeric Scale, which became the foundation of grading and certifying coins. The Sheldon Numeric Scale dictates that a coin's condition can fall between 1 and 70. Before this groundbreaking system, coins were graded mostly by physical appearance and could receive one of three grades.

Certified South African Krugerrands

There are many coin grading agencies out there but only two that are revered worldwide. The Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS) are two companies that issue coins their grades. These companies not only certify coins, but they also encase the graded coin into an official holder, preserving the coin and marking the holder with its earned grade. This alone has changed the coin collecting game, while also offering a peace of mind for collectors and investors.

When purchasing a Certified South African Krugerrand, there is information provided on the coin holder that is important to know. The first thing to notice is the coin's strike type:

• MS: Short for 'Mint-State;' refers to coins that have never been in circulation and are the same condition as when they were originally produced. Mint State coins will receive a grade ranging from 60-70 on the Sheldon Numeric Scale.
• PF/PR: Abbreviation for 'Proof;' refers to the method of coin manufacture, made for eye appeal among collectors.
• SP: A 'specimen' coin is a combination of strike type (somewhere in the middle of Mint State and Proof).

A Certified American Gold Eagle (or any certified bullion coin) will most likely come in one of two grades:

• MS/PF70: Bullion coins that have kept their original mint luster and contain zero post production flaws.
• MS/PF69: Bullion coins that contain 2 or less minute imperfections but still carry their original mint luster.

Other certification terms often used for bullion coins:

• First Strike: PCGS term designates coins that have been certified within the first 30 days of production by the contributing mint.
• Early Release: NGC term designates coins that have been certified within the first 30 days of production by the contributing mint.
• UCAM/DCAM: Shortened for Ultra-Cameo and Deep-Cameo, these terms refer to the coin's visual brilliance that is apparent on the surface by an unyielding, frosted finish and a deeply mirrored background luster.

Design History of South African Krugerrand

The South African Krugerrand's design was constructed by two artists, instead of one. The obverse was designed by Otto Schultz and features the side profile portrait of Paul Kruger. Kruger remains one of the most divisive and well-known political figures from the 19th century. Seated as the 3rd president of the South African Republic, Kruger served for almost 10 years as Commander in Chief. His name was linked to the rand, which is the South African currency, and together make the Krugerrand.

The reverse presents the national animal of the South African Republic: the Springbok antelope. This design was done by Coert Steynberg, featuring the antelope effortlessly galloping through a field. The coin's purity, weight, and year of issue are also engraved on the reverse. The South African Krugerrands were minted with 160 serrations around the edge of the bullion coin and over 200 serrations on the proof coin, resulting in a truly unique coin.

Variations of the South African Krugerrand

The South African Krugerrand began as just a 1 troy oz gold coin but due to extreme demand, smaller increments were introduced in 1980. Four versions: 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz are all still minted today. There were also special edition proof coins minted. The main difference between the proof coins and the bullion is the amount of serrations around the edges.

Sheldon Grading Scale

Dr. William Sheldon was an American psychologist by trade and a numismatist as a hobby. In 1948, Sheldon developed the Sheldon Numeric Scale, which became the foundation of grading and certifying coins. The Sheldon Numeric Scale dictates that a coin's condition can fall between 1 and 70. Before this groundbreaking system, coins were graded mostly by physical appearance and could receive one of three grades.

Certified South African Krugerrands

There are many coin grading agencies out there but only two that are revered worldwide. The Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS) are two companies that issue coins their grades. These companies not only certify coins, but they also encase the graded coin into an official holder, preserving the coin and marking the holder with its earned grade. This alone has changed the coin collecting game, while also offering a peace of mind for collectors and investors.

When purchasing a Certified South African Krugerrand, there is information provided on the coin holder that is important to know. The first thing to notice is the coin's strike type:

• MS: Short for 'Mint-State;' refers to coins that have never been in circulation and are the same condition as when they were originally produced. Mint State coins will receive a grade ranging from 60-70 on the Sheldon Numeric Scale.
• PF/PR: Abbreviation for 'Proof;' refers to the method of coin manufacture, made for eye appeal among collectors.
• SP: A 'specimen' coin is a combination of strike type (somewhere in the middle of Mint State and Proof).

A Certified American Gold Eagle (or any certified bullion coin) will most likely come in one of two grades:

Krugerrand Coin Worth

• MS/PF70: Bullion coins that have kept their original mint luster and contain zero post production flaws.
• MS/PF69: Bullion coins that contain 2 or less minute imperfections but still carry their original mint luster.

Krugerrand Coin Necklace

Other certification terms often used for bullion coins:

• First Strike: PCGS term designates coins that have been certified within the first 30 days of production by the contributing mint.
• Early Release: NGC term designates coins that have been certified within the first 30 days of production by the contributing mint.
• UCAM/DCAM: Shortened for Ultra-Cameo and Deep-Cameo, these terms refer to the coin's visual brilliance that is apparent on the surface by an unyielding, frosted finish and a deeply mirrored background luster.

• Uncirculated South African Gold Krugerrands
• Proof South African Gold Krugerrands
• Certified South African Gold Krugerrands
• South African Gold Krugerrand Coin Sets

The Krugerrand (/ˈkruːɡərænd/;^[1]Afrikaans: [ˈkrœjərˌrant]) is a South African coin, first minted on 3 July 1967 to help market South African gold and produced by Rand Refinery and the South African Mint.^[2][3] The name is a compound of Paul Kruger, the former President of the South African Republic (depicted on the obverse), and rand, the South African unit of currency. On the reverse side of the Krugerrand is a springbok, South Africa's national animal.

By 1980 the Krugerrand accounted for more than 90% of the global gold coin market and was the number one choice for investors buying gold. However, during the 1980s and 1990s, Krugerrands fell out of favor as some western countries forbade import of the Krugerrand because of its association with the apartheid government of South Africa.^[4][5]

Although gold Krugerrand coins have no face value, they are considered legal tender in South Africa by the South African Reserve Bank Act (SARBA) of 1989.^[6]

In 2017, the Rand Refinery began minting silver versions, which have the same overall design as the gold coin.^[7]

History[edit]

The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. It was minted in a copper-gold alloy more durable than pure gold. By 1980 the Krugerrand accounted for 90% of the global gold coin market.^[8] That year, South Africa introduced three smaller coins with a half troy ounce, quarter ounce, and tenth ounce of gold.^[9]

Economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. The United States which had historically been the largest market for the coin, banned imports in 1985; the previous year, over US$600 million of Krugerrands had been marketed in that country.^[4] Most sanctions ended in 1991, after the South African government took steps toward ending its apartheid policy.^{[10][11][12][13]}

Production levels of Krugerrands have significantly varied since its introduction. From 1967 to 1969, around 40,000 coins were minted each year. In 1970, the number rose to over 200,000 coins. More than one million coins were produced in 1974, and in 1978 a total of six million were produced. The production dropped to 23,277 coins in 1998 and then increased again, although not reaching previous levels.

Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.^[14]

Variations and imitations[edit]

During the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide.^[15] Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the Canadian Gold Maple Leaf in 1979,^[16] the Australian Nugget in 1987,^[16][17] the Chinese Gold Panda in 1982,^[18][19] the American Gold Eagle in 1986,^[16][18] and the British Britannia coin in 1987.^[16]

Private mints have also attempted minting gold and silver bullion rounds (the term coin denotes legal currency) in the style of the Krugerrand. The rounds often depict Paul Kruger and a springbok antelope, some even blatantly copying the design of the Krugerrands themselves, though the inscriptions are altered. These bullion rounds are not offered by the South African Mint or the Government of South Africa, and are therefore not official, have no legal tender value, and cannot technically be considered coins.

Properties[edit]

The Krugerrand is 32.77 millimetres (1.290 in) in diameter and 2.84 millimetres (0.112 in) thick. The Krugerrand's actual weight is 1¹⁄₁₁ troy ounces (34 g). It is minted from gold alloy that is 91.67% pure (22 karats), so the coin contains one troy ounce (31.1035 g) of gold. The remaining 8.33% of the coin's weight of ¹⁄₁₁ ozt (2.828 g) is copper (an alloy known historically as crown gold which has long been used for British gold sovereigns), which gives the Krugerrand a more orange appearance than silver-alloyed gold coins. Copper alloy coins are harder and more durable, so they can resist scratches and dents.

The coin is so named because the obverse, designed by Otto Schultz,^[20] bears the face of Boer statesman Paul Kruger, four-term president of the old South African Republic. The reverse depicts a springbok, the national animal of South Africa. The image was designed by Coert Steynberg, and was previously used on the reverse of the earlier South African five shilling coin. The name 'South Africa' and the gold content are inscribed in both Afrikaans and English (as can be seen on the pictures of the coin).

Since September 1980, Krugerrands have also become available in three additional sizes containing ¹⁄₂ ozt (15.55 g), ¹⁄₄ ozt (7.78 g) and ¹⁄₁₀ ozt (3.11 g) of gold.^{[citation needed]} On the occasion of the 50th anniversary of the coin range, fractional sizes of 1/20 and 1/50 oz were also added.

The word 'Krugerrand' is a registered trademark owned by Rand Refinery Limited, of Germiston.^{[citation needed][21]}

Proof Krugerrands[edit]

The South African Mint Company produces limited edition proof Krugerrands intended to be collectors' items rather than bullion investments. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 edge serrations, while bullion coins have 160.^[22][23]

50th Anniversary Krugerrands[edit]

2017 marked the 50th year of issuance (1967–2017) and to commemorate the anniversary, the South African Mint produced 'Premium Uncirculated' versions in gold (.916 or 22 carat) and for the first time also in platinum (.999 fine) and silver (.999 fine). The issue limit for these commemorative platinum, gold and silver coins was 2,017 for platinum, 5,000 for gold and 1,000,000 for silver. The commemorative issues are distinguished by a '50' privy seal mark above the springbok design on the reverse for the platinum and silver issues and to the right of the springbok design on the gold issues. In addition to the 'Premium Uncirculated' issue, 15,000 silver 'Proof' krugerrands were also issued as well as 'Proof' krugerrands in gold and platinum.^[14]

Export Control[edit]

The South African Reserve Bank restricts the exportation of Krugerrands by a South African resident to a non-resident to a maximum of R30,000 (about US$2,100 or 1,870 Euro as of June 2018). Visitors to South Africa can export up to 15 coins by declaring the items to the South African Revenue Service.^[24]

Charitable donations[edit]

In the 21st century, Krugerrands have received media attention in the United States after anonymous donors have left the valuable coin in the Salvation Army's annual 'Christmas Kettle' donation jars in various cities around the country.^{[25][26][27][28]}

References[edit]

1. ^'Krugerrand - definition'. Dictionary.com, LLC. Retrieved 11 August 2012.
2. ^'Products'. Rand Refinery. Retrieved 19 April 2019. produced by Rand Refinery and the SA Mint
3. ^'Bullion'. The South African Mint Company. Retrieved 19 April 2019. The South African Mint Company manufactures Proof Krugerrands, and jointly manufactures the Bullion Krugerrand with Rand Refinery.
4. ^ ^abBob Secter (02 Oct 1985) Reagan Bans Imports of S. Africa Krugerrand, The Los Angeles Times, accessed 28 June 2018
5. ^Staff, Robin Foster of The Sentinel. 'KRUGERRAND LUSTER DIM FOR LOCAL COLLECTORS'. OrlandoSentinel.com. Retrieved 1 May 2020.
6. ^17 (2) (a) '[...] the value of each gold coin so tendered shall be equal to the net amount at which the bank is prepared to purchase that gold coin on the day of such tender thereof [...]' [1], South African Reserve Bank Act, 1989
7. ^'The Silver Krugerrand has arrived'(PDF). Alchemist Issue 90. London Bullion Market Association. Retrieved 24 August 2019.
8. ^Tom Bethell (4 February 1980). 'Crazy as a Gold Bug'. New York. 13 (5). New York Media. p. 34.
9. ^'2010 Krugerrand Series'. www.samint.co.za. South Africa: The South African Mint Company. 2010. Retrieved 30 July 2011.
10. ^Yearbook of the United Nations (Volume 45 ed.). United Nations. 1991. p. 114. OCLC1768016.
11. ^Yearbook of the United Nations, Volume 45, p. 114, at Google Books
12. ^'Most South African Sanctions Lifted: ML&B White Paper - Morgan Lewis'(PDF). www.morganlewis.com. Philadelphia, PA: Morgan, Lewis & Bockius LLP. 1991. p. Page 2. Archived from the original(PDF) on 29 September 2011. Retrieved 30 July 2011.
13. ^Friedman, Thomas L. (11 July 1991). 'Bush Lifts a Ban on Economic Ties to South Africa'. The New York Times. ISSN0362-4331. Retrieved 1 May 2020.
14. ^ ^ab'Global Interest In Silver Investment Expands As South Africa Adds New Silver Krugerrand'. SilverSeek.com. Retrieved 12 November 2016.
15. ^'Gold Krugerrands: Buying gold coins - 17 August 2007'. Bullion Vault. Retrieved 11 August 2012.
16. ^ ^abcd'Swiss Gold Bug Cleans Out S Africa Krugerrand Coin Maker: COMMODITIES'. Evening Standard. 28 August 2008. p. 33 – via ProQuest.
17. ^Rochette, Ed (31 January 1988). 'Australian Coins Offer `nuggets' to Gold Buyers: FIVE STAR SPORTS FINAL Edition]'. Chicago Sun-Times. p. 34 – via ProQuest.
18. ^ ^abLeckey, Andrew (12 September 1986). 'U.S. GOING GOLD WITH EAGLE COIN: [SPORTS FINAL, C EDITION]'. Chicago Tribune. p. 1 – via ProQuest.
19. ^Boye, Roger (13 August 1989). 'Dealer Asks for U.S. Ban on Panda Coins: [FINAL EDITION, C]'. Chicago Tribune. p. 11 – via ProQuest.
20. ^American Numismatic Association (1997). The Numismatist. 110. American Numismatic Association. p. 765. Retrieved 30 November 2011.
21. ^Gleason, Stefan (16 April 2015). 'Why the Krugerrand Is the King of Gold Bullion Coins'. Money Metals. Retrieved 20 April 2018.
22. ^Gleason, Stefan. 'Why the Krugerrand Is the King of Gold Bullion Coins'. Money Metals Exchange. Retrieved 27 July 2015.
23. ^'2008 Krugerrand Series'. South African Mint Company. Archived from the original on 10 March 2009. Retrieved 6 June 2009.
24. ^Financial surveillance and exchange controls FAQ
25. ^'Salvation Army of Tallahassee receives rare South African Krugerrand coin'. WTXL. 26 December 2019. Retrieved 26 December 2019.
26. ^Glenn, Stacia (22 December 2011). 'Krugerrand dropped into Salvation Army kettle'. The Seattle Times. Archived from the original on 20 December 2014. Retrieved 8 August 2019.
27. ^'For fifth year in a row, mystery person drops a gold coin in Salvation Army kettle'. AP. 13 December 2013. Retrieved 14 December 2013.
28. ^'Gold Krugerrand appears in a Salvation Army red kettle'. WDAY. 20 December 2012. Retrieved 26 June 2013.

External links[edit]