South African Krugerrand gold coins hold a unique distinction and status as the first modern bullion coin ever produced. They revolutionized the market with the idea to produce a legal tender gold coin in 1 troy ounce size. Its face value, which is equal to the spot price of gold, is another distinctive feature.
Due to its high-end qualities, this traditional-looking gold bullion coin is prized all over the world. These features are consistent one-ounce gold content, large mintage, and instantly recognizable design. Even though these bullion pieces were first made available in 1967, they are still quite popular all around the world.
The Gold Krugerrand coins of today are still recognized as an important global emblem of wealth and status. These are the status symbols even after fifty years of their introduction.
What is Krugerrand?
South Africa produces and issues the Krugerrand gold coin, which was first struck in 1967. This coin has 1.0909 troy ounces of 22-karat gold or 33.93 grams. It has a troy ounce of pure gold in it, combined with 2.826 grams of copper alloy.
History and Background of South African Krugerrand Gold Coin
In 1967, the iconic South African Krugerrand Gold coins made their grand debut on a global scale. The coins, which were the first and only bullion coins in existence at the time, were infamous for not having a face value engraved on them since the legal tender value was tied by the South African government to the daily settled gold spot price. Due to the overwhelming success of this first attempt at gold bullion coins, other national mints took notice and developed their own plans for subsequent issues.
The subsequent Mints only took a few years to launch their own competing bullion releases. These Mints were the United States Mint, Royal Canadian Mint, Perth Mint of Australia, and Her Majesty’s British Royal Mint. Nevertheless, by 1980, 90% of all gold bullion coins worldwide were still Krugerrands, despite this inevitable challenge. This proves their importance as emblems of wealth today.
To make it simpler for citizens to hold gold privately, which was previously forbidden, South Africa introduced the South African Krugerrand Gold coins. Because the original one-ounce size was so well received, the mint later introduced lesser sizes so that more people could afford to buy and own gold. The globe saw the debut of the Canadian Gold Maple Leaf and the American Gold Eagle coins a few years later as a result of the continued success of these currencies.
The naming of the South African krugerrand Gold Coin
Named after South Africa’s first president, Paul Kruger, Krugerrand is a gold coin. This name is a combination of Rand, the name of the African unit of currency. South Africa made an excellent mark in the mass market production of gold bullion coins. They produced fully 75 percent of all of the gold on the planet in the late 1960 and 1970.
These coins might be obtained and kept by foreigners whose country governments prohibited them from purchasing gold bars. This was because these coins functioned as legally authorized tenders in South Africa. Later coins were made available as part of a series of collectibles, promising them the following characteristics. These features were numismatic qualities, legal tender worth, and their significant precious metal.
Physical Characteristics of South African Krugerrand Gold Coins
Beautiful, brilliant uncirculated gold coins featuring African-Americans are produced as the Krugerrand. These are pure 22 Karat gold. More than 90% of the gold coins available on the world gold market in 1980 were these well-known coins.
“The obverse” refers to the side of every coin that faces outward.The obverse of the Krugerrand coin has a picture of Paul Krugerrand, the country of South Africa’s first president. In both English and Afrikaans, the name of the country is written below his picture.
The “Reverse” is the backside of the coin. Krugerrand reverse features both a loveable animal and a national symbol of South Africa which is the springbok antelope. As a mark of tribute to the natural and political heritage of the nation, the animal is crafted with sharp detailing. The coin’s gold weight and quality, as well as the mint year, are also inscribed on the reverse.
South African Gold Krugerrand Coins come in sizes starting from tiny one-tenth ounces and increasing to one-quarter, one-half, and finally standard one-ounce sizes.
Pricing for South African Krugerrand Gold Coins
South African Krugerrand Gold coins have the advantage of having the greatest potential legal tender value.
This is so because their face value is determined by multiplying the number of ounces they hold by the current spot price of gold.
The only significant bullion coin in existence that you could theoretically happily spend the money on is this one. These bullion offerings have an intrinsic worth equal to spot gold prices minus a little premium to cover coin minting and circulation expenses. Due to the high volume of coins that have been produced and circulated over the past 50 years, the market value is nearly entirely determined by the spot price of gold.
Is South African Krugerrand Gold Coin IRA eligible?
The Internal Revenue Service is the U.S. government agency that has the exclusive discretion to decide which bullion coins can be added to the well-known IRA retirement accounts offered by the government. Only bullion pieces that meet strict requirements for purity and low collectability are permitted to be held in these accounts. Also, the IRS mandates that one must make a minimum initial purchase of $5,000 in authorized gold and/or silver bullion before they can fund a precious metals IRA. Following that, one can keep adding bullion up to $1,000 worth at a time.
One can easily convert an existing IRA account into a precious metals IRA. They must have a third-party approved depository prepared to receive and store their priceless precious metals in their vault for maintenance and safekeeping needs once their first gold bullion purchase has been executed and received by their IRA account administrator.
These coins don’t meet the .995 minimum purity standard for gold that the IRS mandates for all bullion in IRA accounts because they only have a.9167 gold purity content. This means that you cannot use these coins in your IRA retirement account to acquire and hold Krugerrands, according to the IRS.