There are several gold bullion coins on the market today, but none have a richer history than the South African Krugerrand Gold Coin. This popular gold coin program was the first of its kind and is still popular to this day. Learn all about the history of this unique coin program, right here at Provident Metals.
These coins were first introduced in 1967 as a means for the South African government to promote the vast gold, precious metal, and gem reserves of the nation. As such, the South African Krugerrand became the first modern gold bullion coin available for private investment. Their name is a combination of former prominent South African leader, Paul Kruger, and the country’s currency, the rand.
The South African Mint and the Rand Refinery made 50,000 Krugerrand Gold Coins in 1967, 40,000 of which were bullion coins and the other 10,000 were proofs. In the 1970s, the Krugerrand Gold Coin became the top choice for investors due to a bull market and it’s estimated that 22 million of these coins were imported to the United States between 1974 and 1985. In 1980, it’s estimated that the Krugerrand Gold Coin accounted for 90% of the global gold coin market.
Even though these coins found their way into the United States, availability was still scarce due to Western economic sanctions. At the time, South Africa was ruled by a minority white government and the system of apartheid in place in the country kept the native black population from gaining control of lands and moving up in society. As a result, Western governments adopted a boycott of South African goods.
Due to this boycott and the continued bull market on gold, other mints such as the Royal Canadian Mint, US Mint, Chinese Mint, and others created their own bullion gold coinage. The South African Krugerrand Gold Coin, despite the aforementioned issues, has still released a new coin annually since 1967.
While the design of these coins has seen some modernizations over the years, the designs of both the obverse and reverse have remained the same since 1967.
The series debuted in 1967 with both a 1 oz bullion coin and a 1 oz proof coin. It wasn’t until 1980 when fractional ounces such as the 1/2, 1/4, and 1/10 oz were made available. Proof coins of each weight were also made available in 1980. These four sizes are still the only sizes available in the series to this day.
While Krugerrand Gold Coins have no face value, they are considered legal tender in South Africa via the South African Reserve Bank Act of 1989.
Questions about South African Krugerrand Gold Coins? Give the Provident Metals customer service team a call at 800-313-3315. Our team is available for any inquiries you may have. We can also be reached via email or through our online chat feature.