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As far as gold bullion coins go, the Krugerrand coin is not just famous — it's legendary. Introduced in 1967, this South African gold coin was designed to make gold ownership accessible to the masses. It quickly became the world's first modern bullion coin — a trend that would be followed by other countries soon enough. Today, it remains one of the most recognized and widely traded gold coins on global markets, valued by investors and collectors alike.
In addition to being a secure investment, the Krugerrand has a history shrouded in intrigue. It has survived global bans, smuggling operations, and even political turmoil, all while becoming a gold standard in the precious metal world. Over the decades, it has been hoarded, hidden away, and coveted. In short, it is one of the most fascinating coins of the 20th century.
In this article, we're unearthing 10 little-known facts about the Krugerrand coin that will make you see this iconic gold coin in an entirely new light. From secrets in its design to surprise pop culture appearances, get ready to discover some awesome trivia about this iconic coin.
1. The First Modern Gold Bullion Coin
The Krugerrand, introduced in 1967, was the first modern bullion coin, designed to make gold ownership accessible to everyday investors. Unlike collectible gold coins, it was minted specifically for trade and investment, containing precisely one troy ounce of gold. Its composition included a small amount of copper, giving it durability and a distinct reddish hue. Decades later, the Krugerrand remains a symbol of wealth and a cornerstone of the global gold market.
2. The Krugerrand Inspired Other Gold Bullion Coins
The success of the Krugerrand sparked a global trend, inspiring other nations to mint their own gold bullion coins. Before its introduction, gold coins were primarily collectibles rather than investment assets. Seeing the Krugerrand’s popularity, Canada launched the Gold Maple Leaf in 1979, followed by the American Gold Eagle in 1986 and the Australian Gold Nugget in 1987. These coins provided investors with more options while reinforcing gold’s role as a secure asset. Despite increased competition, the Krugerrand remains one of the most traded and recognized gold coins, solidifying its place as the pioneer of modern bullion.
3. It Was Once Illegal in Many Countries
There was once a time when it was not only unusual to own a Krugerrand coin—but in many nations, flat-out illegal. In the 1980s, economic sanctions against South Africa's apartheid regime resulted in U.S., British, and most of Europe's imports of Krugerrands being banned. Because the coin was among South Africa's primary exports, limiting its sale was a means foreign governments used to exercise economic pressure.
Its highest point was when the Krugerrand accounted for 90% of the world gold coin market, but the restrictions sent demand crashing. Investors used alternative bullion coins for almost a decade. The restrictions were eventually relaxed in the early 1990s when South Africa dismantled the apartheid system. Trade resumed by 1994 with Nelson Mandela's election, and the Krugerrand regained its position as one of the globe's most popular gold coins.
4. The Name Krugerrand Has a Unique Meaning
Ever curious about why the Krugerrand coin has this name? It is the combination of two prominent South African symbols. "Kruger" takes its name from Paul Kruger, ex-president of the South African Republic (1883–1900) and a figure of great importance in South African history. His serious, bearded face is featured prominently on the front side of the coin, assuring us of its rich past.
The second, "rand," actually comes from the official South African currency, named after the Witwatersrand, a land full of gold. The intelligent designation links the coin directly back to South Africa's gold mining history. Taken together, "Krugerrand" speaks for the country and its status worldwide as a giant in gold.
5. The Krugerrand Is 22-karat Gold — Not Pure Gold.
As opposed to some of the gold bullion coins that have a 99.99% gold content, the Krugerrand coin has around 91.67% gold (22 karats), and the other 8.33% is copper. The alloy gives the coin its reddish hue but makes it much more durable against common wear.
Pure or native gold is very soft and very susceptible to being destroyed by scratches or wear. With the alloying of the Krugerrand with copper, the coin attains a tough personality that will withstand everyday usage, as well as render it immune to wear. Because it is immune to wear, it has been a loyal favorite with investors who require a coin made of gold which is both functional as well as equal in worth to its weight in gold.
6. It Was The Most Traded Gold Coin For Decades
The Krugerrand coin has been in the international gold bullion market for a long time now. In the 1980s, it accounted for more than 90% of all the gold coin business globally. Despite growing competition from the American Gold Eagle and Canadian Maple Leaf, the Krugerrand coin is still among the most popular options for investors due to its rich history, power, and global popularity.
7. It Comes in Different Sizes
The South African Mint, in 1980, introduced small sizes—which are of the kind 1/2 oz, 1/4 oz, and 1/10 oz—to make the Krugerrand coin accessible to many more people and become highly accessible. The smaller sizes are convenient for investors to diversify their holdings and are an easy on-ramp to new collectors. Irrespective of whether one purchases an ounce or a smaller fraction thereof, the Krugerrand coin is among the most sought-after forms of gold bullion worldwide.
8. Krugerrands Are Legal Tender, But You Can't Spend Them Like Cash
Unlike other gold bullion coins, the Krugerrand has no face value yet remains legal tender in South Africa. Technically, it could be used for transactions, but its true worth is tied to gold prices rather than a fixed denomination.
Unlike fiat currency, which has a set face value, Krugerrand’s price fluctuates with the international gold market, making it a pure investment vehicle. This unique feature ensures its value is always linked to real gold rather than an arbitrary monetary figure, reinforcing its status as a trusted and globally recognized asset.
9. Pacific Precious Metals Offers Krugerrands for Buying and Selling
Krugerrand buyers and sellers should always work with a trusted dealer. At Pacific Precious Metals, we provide a secure and reliable way to buy and sell genuine Krugerrands with confidence.
Our experts ensure each coin is fully authenticated and priced competitively based on current gold market rates. Whether you're adding to your collection or looking to sell, we offer a seamless, hassle-free experience with professional guidance. Explore our bullion selection or visit one of our locations to speak with an expert about buying or selling Krugerrand coins today.
