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Krugerrand's are solid gold coins from South Africa. The name Krugerrand was derived from two words, Kruger and the monetary unit of South Africa the Rand. The Rand is associated with the area called "Witwatersrand, the ridge of white water" which was and still is, an important gold producing area. Although not commonly known, Krugerrands are also sometimes called Kwugwanda believed to have originated from the South African language of Afrikaans. The South African Chamber of Mines introduced the Krugerrand to help make South African gold as marketable as possible. They did this by issuing the one troy ounce bullion coin and when first introduced in 1967 it sold at a very low premium over the intrinsic value of gold bullion.
Originally only one size of Krugerrand was issued, this coin contained exactly one troy ounce of fine gold (31.1035 grams) from 1980 onwards three other sizes were introduced which were the half, quarter and one tenth troy ounce. All four designs carry the same design with the obverse (front) of the coin bearing a bust of Paul Kruger who in the late 1800’s was President of one of the previous provinces in South Africa, the bust was designed by Otto Shultze.
The reverse side of the coin bears an image of the South African springbok gazelle and was designed by Coert Steynberg.
Krugerrand Values ( @ spot-gold-price June 28th 2009 ) The 1 oz Krugerrand is known as a "Full-Kruger" and is the most popular as the gold content is guaranteed by the South African government.
South Africa has one of the highest gold reserve amounts of any country in the world. It has been mining gold since 1886 and consequently, South African gold now dominates the gold market. In colonial times gold sovereigns were actually minted in Pretoria but with the introduction of the Krugerrand in 1967, the Krugerrand is the top of the gold tables in all gold trade from South Africa. The Krugerrand is a high quality, low priced solid gold bullion coin that has become the most heavily traded item of gold throughout the entire world. 'Full' Krugerrand prices fall between around $740 to $1040 each depending upon the current gold rate of exchange. They are at a premium of $976.90 each at the time of writing June 28th 2009. Proof Krugerrand's A proof coin is one that is specially struck by the mint, using a special die that stamps out the coin. It will strike the coin several times to ensure a higher definition, the legend and image on the coin will have a frosted appearance whilst the rest of the coin will be in a super high polish lustre. These proof coins will be without the slightest scratch, mark or fingerprint, proofs are also known as Proof F.D.C Fleur De Coin which translates as a 100% flawless coin. Proof coins often sell for a much higher value than the bullion value of the coin itself.
Proof Krugerrand's are available from specialist coin dealers, minted in 22 carat gold, these proof quality coins are sold in very limited numbers. All of these coins are specially packed in lavish presentation boxes, each being individually numbered and issued with a certificate of authenticity. When the gold trading company Intergold was established as a subsidiary of the Chamber of Mines in South Africa, they took over the distribution of uncirculated Krugerrand's, these had 180 serrations, while the proof Krugerrand, that had 220 serrations was exclusively sold by the South African Mint. The everyday circulated bullion Krugerrand is indexed to the daily gold price and hence its value will fluctuate with the rate of exchange. The proof Krugerrand however is only available in limited quantities and has a fixed price, for example the year 2000 Krugerrand has a fixed edition of just 2000 coins for world wide distribution.
As a numismatic collectors coin, the proof Krugerrand is eagerly sought after by coin collectors the world over, and unlike gold bullion, the price of a proof coin can be haggled over ! All Krugerrand's are 22 carat gold alloyed with a little bit of copper to make them harder wearing and they are all legal tender in South Africa. Buying and Selling If you are going into bullion dealing then you will buy when they are low and sell when they are high, but as the old anecdote goes, "You have to find a buyer " and if your buyer is shrewd enough, you won't make much on the deal, as he will wait for the gold prices to fall back down to a more favorable level before he buys. Solid Gold, Silver and Platinum coins have two values, the first is their face value whereas for example the 1 oz American Eagle platinum bullion coin as seen below, has a face value of $100 as this is stamped on the coin, its secondary value is the bullion value or the value that 1 oz of pure .9995 platinum commands...in this case $1220 ( @ spot-gold-price June 28th 2009 ) so it is the bullion value that the coin is bought and sold for.
Krugerrands are no different, they have a face value but it is their bullion value that makes the coin worth it's commanding price. Anyone can buy or sell these coins and always at their bullion value. Krugerrand's appear on E-bay and other internet stores all the time, its best to do as much research on the seller as possible along with comparisons from other sellers both on and off E-bay as to the real value of the coin at the time of your interest. You may want to sell a Krugerrand but at the time the gold rates may be rock bottom, so you will have to wait for them to rise and then you will have to sell fast before the price fluctuates back down again. Gold bullion buying and selling is a very tricky business, you need to be aware that its a very shrewd market where $100's can be made or lost in a single coin transaction. And please be aware of internet scams that offer to sell Krugerrand's at super low prices or for knock down sellers commissions. If you wish to buy a Krugerrand as a family investment this may be a good idea but please...only purchase from respected gold bullion dealer's, coin dealer's, renown internet stores or from the bank itself and never from an unknown internet trader. Caveat Emptor - Let the Buyer beware ! Some of the more reputable Krugerrand sellers are listed below. www.monex.com/prods/gold_krug.html GOLD
& GOLD BULLION RESERVES
It may be of interest to know that gold bullion
still remains a very important asset for most of the world’s big central
banks in support of their corresponding countries economy.
In 2007 for example it was known that the United States held 8,133 tons
of gold...the largest gold reserve in the world, whilst Germany held
2,422 tons, France held 2,710 tons and Japan 765 tons. Britain
however, currently has only 315 tons after British Chancellor of the
Exchequer Gordon Brown ( now Prime Minister ) made the catastrophic
decision to sell off 400 tons of their gold which was over 50% of Britains gold reserves, this too when gold was at an all time low on the
stock markets and indexes...he did it at a loss of £3 billion at the
time which would be closer to £5½ billion by today's prices!
As the British would say... " What
a plonker ! " However several
smaller economies, including Switzerland, Malaysia and Australia, have
also followed suit and recently sold off significant gold reserves in
attempt to bolster their state treasuries.
At the time of updating this web page, gold is currently reaching an all
time high and may soon reach the golden figure of $1000
per troy ounce as it closed at $994 per ounce on September 4th 2009.
In March 2008 gold was at the highest ever level of $1002.80 per ounce
as the chart below illustrates.
The chart above is from 24hr Spot-Gold at
www.kitco.com/charts/livegold.html
Would now be a good
time to be dealing/investing in gold...well the answer to that is quite
simply YES ! which is probably why so many high street jewellers,
dealers and E-bay buyers are snapping up as much gold as they can get
their hands on, buying gold at around...
( Pricing for above chart as of
November 11th 2009 - figures rounded to nearest $ ) Second hand solid
and hallmarked gold jewellery often referred to as scrap gold or old
gold is bought up by dealers, who then separated it from any gems that
may be in it, then melt it down into solid gold ingots. This is
then sold for profit in the best state for gold and that is
bullion.
Also beware of selling gold by getting
quotes via mail scams er schemes...
You send off your gold jewellery through the mail. You later get a
quote for it
via E-mail.
The offer will generally be low,
hoping you will just accept to save all the bother. You don't accept, you then ask them
to sent it back. They have your gold in their sweaty palms and
will not like sending it back. They will then offer you a bit
more, they might haggle with you until you cave in because you are
now getting tired...its all part of the show folks...your gold is
beautiful big bucks profit. Don't forget gold has two mutual price
structures, the buying price and the selling price. Gold also has
three value structures, This
website of www.vincelewis.net is
neither a buyer nor seller of gold and/or Krugerrands, so please don't make or ask
for offers. This web-page is for education and for the purposes of
interest only. Thank You. |
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Gold broke the $1000 level on
Sep 10th 2009 and is currently hovering around $1115.00/£669.00 per
t-ounce @ 06:50 EST November 11th 2009 and I predict that $1200 per
t-ounce is probable and may even exceed this.