In the beginning, there was the South African Krugerrand. 1967 was the year, and the Krugerrand was the first ounce denominated gold coin globally. This was an initiative to democratise gold, allowing the public to own the precious metal privately. This experiment proved to be a huge success, and in 1980 Krugerrands made up more than 90% of the global coin market. This innovation created a currency hedge that still operates in the fiat currency system. While the Krugerrand has no face value, the South African Reserve Bank Act considers these coins legal tender in South Africa.
What is the difference between Proof Krugerrands and Bullion Krugerrands?
The Krugerrand proof coin showcases the fine craft, design and technique of the modern minting process. Proof Krugerrands are double pressed with a lower weight, giving the relief much more clarity of detail. A proof coin is hand-packed and encapsulated to maintain its mirror-like frosted finish’s mint condition. Although the coin is not intended to be touched by hand, special gloves must be worn as the coins are easily scratched and damaged. Any spoilage to the Krugerrand Proof greatly decreases the value. In conjunction with their limited annual mintage, the condition adds numismatic value to each Krugerrand Proof, with some Proofs even carrying a special mint mark to commemorate special events, such as the 150th anniversary of the Eureka Diamond’s discovery.
Bullion Krugerrands are intended to be handled and used as legal tender. As such, a lot of the features of the coin are geared towards this. Unlike Proofs, they are difficult to scratch, are stackable, and have rounded edges. Bullion also holds no numismatic value, with its price rising with the gold price. Bullion Krugerrands are a high-quality mint. The quality is given longevity by the alloy from which they are made. Krugerrand Proofs, however, are manufactured as a premium product. The 220 reeds of a Krugerrand Proof’s rim give the contours of the coin a finer looking but sharper edge compared to the 180 serrations on the bullion’s rim.
For decades the Krugerrand has been the bullion of choice as a way to secure peace of mind for financial stability and as a coin suited to collecting. With a durable formation, timeless design, proven trading, reliability and global liquidity, the Krugerrand has proven to stand the test of time. It is an iconic, recognisable and celebrated brand and product worldwide. The Krugerrand offers tangible peace of mind during uncertain times, providing financial security at any given time.