Have you ever wondered what is the world’s most popular and most invested gold coin?: well, the answer is the South African Krugerrand.
The Krugerrand is a South African gold coin that was minted first in 1967 and produced by Rand Refinery and the South African Mint. It was introduced as a vehicle for private ownership of gold. It is the most widely held and actively traded bullion coin in the world with over 60 million ounces sold in the last 50 years.
The name of the coin Krugerrand is derived from two sources: Kruger, named after Johannes Paul Kruger, former president of the Transvaal Republic, and Rand, the South African unit of currency.
The obverse of the Krugerrand gold coin depicts Paul Kruger, former president of the Transvaal Republic. Kruger rose to international fame as the head of the Boer resistance against British forces in the late 19th century.
The reverse of the Krugerrand gold coin depicts the Springbok antelope which is South Africa’s national animal.
The Krugerrands have no face value; however, they are considered legal tender in South Africa by the South African Reserve Bank Act (SARBA) of 1989. (1) The Krugerrand is the only legal tender bullion coin with its face value denominated in ounces of pure gold, therefore it is guaranteed that the South African Reserve Bank will purchase any tendered Krugerrand at the ruling price of gold on the day. (2)
Krugerrand is a well know investment gold coin globally with unparalleled liquidity and you can now buy Krugerrand in Finland at Tavex OY at record low premiums! Krugerrands track the price of gold: The value of Krugerrand coins is primarily determined by their fine gold content which is linked to the prevailing price of gold. Additionally, the Krugerrand gold coins are durable. They are minted from a crown gold alloy that is 91.67 % pure (22 karats). The rest of the alloy contains copper, which strengthens the coins’ surface and enhances the durability of the coin making it suitable for handling. Last but not least, Gold’s low correlation with other financial assets makes Krugerrands serve as a portfolio hedge against market risk.
(1) Source: www.lbma.org.uk/assets/Alchemist/Alchemist_90/Alch90Collocott.pdf
(2) Source: http://www.randrefinery.com/products/