Gold Krugerrands / Krugers

In 1967, The South African Chamber of Mines was having difficulty moving South African gold so it issued a 1 oz. gold bullion coin. The Krugerrand was minted and has been minted every year since. These Kruggarrands are not a beutiful coin to look at since they were intended to be minted at a very low cost above the intrinsic value of the gold.



The Kruggarand or Kruger as it is also known is a legal tender in South Africa which means that importation into most countries is allowed without import taxes, duty, or VAT.

In 1967, the 1 ounce (one troy ounce) gold bullion coin was the only denomination available and this is known today as a full kruger or full krugarrand. In 1980, other size krugers were added including a half-ounce, quarter-ounce, and one-tenth-ounce weights.

Interestingly, the British were not allowed to own gold bullion so krugarrands were extremely rare in Britain. In 1971, kruger's were allowed in Britain.

Initially the krugerrand was available for 3% over the intrinsic value of the gold in the full ounce denomination. Smaller denominations have a higher mark-up. Some dealers would rather not deal with low volume small denomination bullion at all. The higher price over the intrinsic value reflects this realizaion with some mark-ups greater of as much as 20 -50% for tenth ounce denominations.

Kruggerands trade in active market in South Africa , meaning investors can easily cash in on their investment with numerous traders and financial institutions throughout the country wiling to purchase gold coins. Kruggerands usually sell for slightly more than the current value of their gold content. Kruggerands are the best value because they have the smallest premium above melt (usually $5-$10). More than 50 million Kruggerands are currently in circulation throughout the world, making this one of the most successful gold coins ever minted.


Whether you are looking to buy or sell krugerrands, shop around various dealers as prices will vary.

Comments from Marc in St. Louis, MO
     Posted on: 11-29-2006
     Rating: Positive

I recently acquired a handful of South African Krugerrands through the passing of a family member. During my recsearch to better understand the Krugerrand, I learn much about the gold coin, including the following fact which I found to be very interesting:

"The Krugerrand from South Africa, first minted in 1967, was the first gold coin to contain precisely one ounce of fine gold and intended as created to provide a vehicle for the private ownership of gold. By bestowing legal tender status upon the coin, Krugerrands could be owned by citizens of the United States, who at that time were prohibited private ownership of bullion, but allowed ownership of foreign coins."

Prior to this aquisition, I had no exposure to gold or appreciation for "Gold Coins". However, onceI have a reason to research history, much of it is always amazing.

Who knew that at one point Americans could not buy gold and the the South Afircan Krugerrand changed that.

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Comments from Jonathan Hunter in Tampa, FL
     Posted on: 04-24-2007
     Rating: Positive

Australian Kruggerands have become rather popular in recent years. Does anyone know why the surge in popularity? I have several thousand dollars worth. Should I be selling or buying more at this time?

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Comments from H Wallace in North Carolina
     Posted on: 08-03-2007
     Rating: Neutral

I too have acquired some South African Kugarrands from the passing of a relative. I would like to find a dealer interested in buying them. Any advice to begin the search?

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Comments from chilly willy in lodi, ca
     Posted on: 10-29-2011
     Rating: Positive

most coin dealers should purchase kugarrand at market value, stay away from pawn shops

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