The Krugerrand is a South African coin, first minted on 3 July 1967 to help market South African gold and produced by Rand Refinery and the South African Mint. The name is a compound of Paul Kruger, the former President of the South African Republic, and rand, the South African unit of currency. On the reverse side of the Krugerrand is a springbok, South Africa's national animal. By 1980 the Krugerrand accounted for more than 90% of the global coin market and was the number one choice for investors buying gold. However, during the 1970s and 1980s, Krugerrands fell out of favor as some western countries forbade import of the Krugerrand because of its association with the apartheid government of South Africa. Although gold Krugerrand coins have no face value, they are considered legal tender in South Africa by the South African Reserve BankAct of 1989. In 2017, the Rand Refinery began minting silver versions, which have the same overall design as the gold coin.
History
The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. It was minted in a copper-gold alloy more durable than pure gold. By 1980 the Krugerrand accounted for 90% of the global gold coin market. That year, South Africa introduced three smaller coins with a half troy ounce, quarter ounce, and tenth ounce of gold. Economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. The United States which had historically been the largest market for the coin, banned imports in 1985; the previous year, over US$600 million of Krugerrands had been marketed in that country. Most sanctions ended in 1991, after the South African government took steps toward ending its apartheid policy. Production levels of Krugerrands have significantly varied since its introduction. From 1967 to 1969, around 40,000 coins were minted each year. In 1970, the number rose to over 200,000 coins. More than one million coins were produced in 1974, and in 1978 a total of six million were produced. The production dropped to 23,277 coins in 1998 and then increased again, although not reaching previous levels. Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.
Variations and imitations
During the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide. Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1987, the Chinese Gold Panda in 1982, the American Gold Eagle in 1986, and the British Britannia coin in 1987. Private mints have also attempted minting gold and silver bullion rounds in the style of the Krugerrand. The rounds often depict Paul Kruger and a springbok antelope, some even blatantly copying the design of the Krugerrands themselves, though the inscriptions are altered. These bullion rounds are not offered by the South African Mint or the Government of South Africa, and are therefore not official, have no legal tender value, and cannot technically be considered coins.
Properties
The Krugerrand is in diameter and thick. The Krugerrand's actual weight is. It is minted from gold alloy that is 91.67% pure, so the coin contains of gold. The remaining 8.33% of the coin's weight of is copper, which gives the Krugerrand a more orange appearance than silver-alloyed gold coins. Copper alloy coins are harder and more durable, so they can resist scratches and dents. The coin is so named because the obverse, designed by Otto Schultz, bears the face of Boer statesman Paul Kruger, four-term president of the old South African Republic. The reverse depicts a springbok, the national animal of South Africa. The image was designed by Coert Steynberg, and was previously used on the reverse of the earlier South African five shilling coin. The name "South Africa" and the gold content are inscribed in both Afrikaans and English. Since September 1980, Krugerrands have also become available in three additional sizes containing, and of gold. On the occasion of the 50th anniversary of the coin range, fractional sizes of 1/20 and 1/50 oz were also added. The word "Krugerrand" is a registered trademark owned by Rand Refinery Limited, of Germiston.
Proof Krugerrands
The South African Mint Company produces limited editionproof Krugerrands intended to be collectors' items rather than bullion investments. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 edge serrations, while bullion coins have 160.
50th Anniversary Krugerrands
2017 marked the 50th year of issuance and to commemorate the anniversary, the South African Mint produced "Premium Uncirculated" versions in gold and for the first time also in platinum and silver. The issue limit for these commemorative platinum, gold and silver coins was 2,017 for platinum, 5,000 for gold and 1,000,000 for silver. The commemorative issues are distinguished by a '50' privy seal mark above the springbok design on the reverse for the platinum and silver issues and to the right of the springbok design on the gold issues. In addition to the "Premium Uncirculated" issue, 15,000 silver "Proof" krugerrands were also issued as well as "Proof" krugerrands in gold and platinum.
Export Control
The South African Reserve Bank restricts the exportation of Krugerrands by a South African resident to a non-resident to a maximum of R30,000. Visitors to South Africa can export up to 15 coins by declaring the items to the South African Revenue Service.
Charitable donations
In the 21st century, Krugerrands have received media attention in the United States after anonymous donors have left the valuable coin in the Salvation Army's annual "Christmas Kettle" donation jars in various cities around the country.
