Live Metal Prices / oz
Gold: 2082.73 USD
Silver: 23.13 USD
Platinum: 887.03 USD
Palladium: 952.92 USD
Rhodium: 5000.00 USD

Why is the Krugerrand Series so Popular?

The Krugerrand coin series, which originates in South Africa, is one of the most widely circulated one-ounce gold coins globally. But the series is also a reliable and well-recognised series for people who want to buy silver Krugerrands as well. Krugerrands launched in 1968 in gold, and the series continues to be one of the most popular contemporary bullion coins worldwide.

Let's look into the reasons why the coin series is so popular worldwide.

1. Monopolistic History

The Krugerrand was the first gold bullion coin to be released in modern time to become commerically popular on a global scale. The series was first released in 1968. The coin was launched as a way for the government of South Africa to monetize its gold mining industry. However, the coin was hugely popular. It also was launched at a time when retail bullion investing became popular, and even trendy. After a decade of large-scale production and skyrocketing gold prices, other nations started minting their own coin series to compete with the Krugerrand. However, none have ever surpassed the popularity of the Krugerrand, which sold over 3 million coins annually in the late 1970s.

2. Tradability

Since their launch, more than 50 million Krugerrands have been sold globally. These coins are well recognised around the world, makeing them easily tradable. They also sell at a relatively low premium over the spot bullion price, which makes them quite competitive compared to other brands of gold coins. The Krugerrand's tradability has bolstered the coin's legitimacy as a tradable and liquid asset.

3. Durability

The Krugerrand is a 999 fine coin that is infused with copper and silver, which significantly strengthens the coin. Coins that are 9999 fine are prone to scratching and damage, as gold is quite a soft metal. The Krugerrand is significantly more durable than many other gold coins. All gold coins with a purity of 999 or higher are considered to be investment grade. The majority of jewelry is 14 karats (58 percent gold). 

The lower the karat number, the less gold is contained in the jewelry, but the more durable it is. The Krugerrand is 22 carat gold and is composed of 91 percent gold.

4. Competition

Following the Krugerrand's enormous success, economic sanctions on South Africa's then-apartheid government, and then-record gold prices, many countries issued their own gold coins to replicate the Krugerrand. The most significant ones are: The Canadian Gold Maple Leaf (1979) and the Australian Nugget (1987). The Nugget was replaced with the Kangaroo in 1989. 

Other, less successful competitors include the American Eagle and the Chinese Panda. However, the Krugerrand is sold at the lowest price over the spot gold price of all the major bullion coins, making it the most popular among bullion investors. Bullion investors looking to buy gold to maximize profits would be turned off by the high premiums on other brands.

Conclusion sells the Krugerrand series in gold, silver and platinum. Coins are available in 1 ounce size, and gold Krugerrands are also available in fractional sizes. 

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