Krugerrands: South Africa's Iconic Gold Coins

Krugerrands: South Africa's Iconic Gold Coins

5 Min.

Krugerrands, the renowned gold coins, hold a significant place in the world of precious metals. These coins were introduced by the Republic of South Africa in 1967 to promote the country's gold reserves in international markets and make gold ownership accessible to individuals. This comprehensive exploration will delve into the history, significance, and present state of Krugerrands, offering valuable insights for those interested in investing in these iconic coins.


Krugerrands, unlike ordinary currency, are gold coins with a unique history and value proposition. They were created to serve as a medium for individuals to invest in gold, with their worth directly linked to the prevailing gold market rates. Although they are legal tender in South Africa, Krugerrands were not assigned a specific rand (ZAR) value. Instead, their value is intrinsically tied to the price of gold.

The Faces of Krugerrands

The face of a Krugerrand coin features the image of Paul Kruger, a historical figure of great significance in South Africa. Paul Kruger served as the president of the South African Republic from 1883 to 1900, a pivotal period in the country's history. The coin's name itself is a blend of Paul Kruger's last name and "rand," South Africa's national currency.

On the reverse side of the coin, you'll find a striking image of a galloping springbok antelope, one of South Africa's cherished national symbols. Paul Kruger's presidential term coincided with the founding of the immensely profitable Durban Deep mine in 1896 and the Witwatersrand Gold Rush, which led to the establishment of Johannesburg, one of South Africa's largest cities.

Trading Krugerrands

The Johannesburg Stock Exchange (JSE) plays a significant role in the trading of Krugerrands. It operates a well-regulated secondary market, where these coins are traded much like any other listed equity market instrument. The quoted prices for Krugerrands are determined based on their weight. New Krugerrands are issued by the South African Reserve Bank (SARB), which also provides a means for redemption.

To ensure their durability and longevity, Krugerrands were designed with resilience in mind. Unlike the delicate 24-karat gold coins often used for decorative medals, Krugerrands are composed of 22 karats or 91.67% gold, mixed with an 8.33% copper alloy.

The Historical Perspective

Krugerrands and the United States

Krugerrands arrived on the scene in 1967, a time when the United States had restrictions in place, preventing its citizens from owning gold bullion. However, foreign coins like the Krugerrand could be bought and sold freely in the U.S. They swiftly gained popularity as a means of investing in gold.

As the world became increasingly aware of South Africa's apartheid policies, which enforced racial segregation, Krugerrands faced a period of diminished interest. In the 1970s and '80s, numerous Western nations imposed economic sanctions against South Africa, banning the import of Krugerrands due to their association with apartheid. The United States, for instance, prohibited the import of Krugerrands in 1985. These sanctions remained in place until apartheid was officially abandoned in 1994. Despite this, many U.S. investors remained unaware of the lifting of the ban, leading to low volumes of Krugerrand imports.

Krugerrands' Golden Era

In the 1970s, South Africa was the world's leading gold producer, boasting over 75% of the global gold reserves. Krugerrands swiftly became the preferred choice for gold investors during this period. By 1980, at the peak of the gold market, Krugerrands dominated the world's gold-coin market, accounting for a staggering 90% of all gold-coin investments.


The year 1994 was a turning point for Krugerrands. With the end of apartheid, the production of Krugerrands plummeted. Although South Africa's gold production rebounded after that, it never returned to the heights of the 1970s and '80s. By 2016, South Africa's gold output had fallen by 85% since 1980, reducing the country's share of the world's gold production to just 6%.

Today, Krugerrands continues to face challenges. South Africa's gold production, as indicated by a graph, declined by over 30% between December 2018 and 2019, marking the longest run of contractions since the 2007–08 financial crisis.

Investing in Krugerrands

Krugerrands remains an appealing investment for both professional and private investors. Their enduring popularity can be attributed to several key factors:

  • Value and Size: Krugerrands' compact size and inherent value make them convenient for storage. This feature attracts investors looking to secure their investments in a manageable form.
  • Portfolio Diversification: Krugerrands offers an effective means of portfolio diversification. They appeal to investors seeking to hedge against the U.S. dollar or diversify their investment portfolio.
  • Historical Value: Gold, including Krugerrands, has a proven track record of retaining its value, even in times of economic uncertainty. Many investors view gold as a safe haven asset.
  • Tangible Assets: Owning physical coins and bars holds particular appeal for investors who prefer the security of tangible assets over securities that exist solely on paper.

When considering Krugerrand investment, it's essential to have a secure storage solution in place and be cautious of potential scams. Seek out reputable gold dealers, and familiarize yourself with your state's tax laws, which may include sales tax on gold.


Krugerrands, the iconic gold coins of South Africa, are a testament to the enduring allure of gold as an investment. With their rich history, intrinsic value, and continued relevance in today's financial landscape, Krugerrands holds a unique place in the world of precious metals. Understanding their past and present status is essential for those considering an investment in these celebrated coins.

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