Krugerrand coins are among the most recognized and widely traded gold bullion coins in the world. First minted in 1967 by the South African Mint, the Krugerrand was created to help market South African gold and was the first coin to contain precisely one troy ounce of gold. It features the image of Paul Kruger, a former South African president, on the obverse and a springbok antelope on the reverse.
Made of 22-karat gold (91.67% purity) with a copper alloy for added durability, Krugerrands are popular among investors for their gold content, liquidity, and historical importance. Whether you’re collecting or investing, these iconic coins remain a trusted choice in the precious metals market.
What Are Krugerrands?
The South African Krugerrand is one of the oldest national gold bullion coins in the world. Created in 1967, each Krugerrand contains 1 ounce of 22-karat gold along with bits of other metals like copper to ensure durability.
This coin is unique since it’s recognized as legal tender within South Africa, along with its currency, the Rand. This coin has grown in popularity and inspired other national coins like the Canadian Maple Leaf and the revival of the American Gold Eagle coin.
Brief History of Krugerrands
Krugerrands are popular coins due to their long history, stable values, and accessible prices. Some countries, including the United Kingdom, banned the transactions of these coins when Apartheid was in effect. Despite rocky years, Krugerrand coins have become popular ever since the apartheid ended in 1994.
How to Buy Krugerrands
One of the best ways to buy Krugerrands is via Gold IRAs. Here is how:
Step 1: Open an Account
Open an online account to trade these coins. Often, these accounts can be created in less than 30 minutes, and some companies offer new investors special offers.
For example, American Hartford Group currently offers free shipping for its gold and silver products as well as a free gold IRA kit. They also include free transit insurance, which protects your precious metals en route to your address.
Step 2: Choose the Gold Coins You Want to Buy
Krugerrands are available in three varieties: ½ ounce, ¼ ounce, and 1/10 ounce. In addition to being able to buy gold Krugerrands, you can buy silver bullion Krugerrands that were released in 2018.
Regardless of the type of gold coin that you purchase, check the weight and composition. For example, Krugerrands have a 92%/8% composition of 22-karat gold to copper.
Step 3: Make Your Purchase
Both partners require new investors to call during business hours to purchase, trade, or sell Krugerrands to confirm your order, the price, and your physical address.
Unlike stocks that can be bought and sold purely online, physical gold requires extra care since it’s being transported to a physical location.
How to Trade or Sell Your Krugerrands
These partners can help you sell or exchange Krugerrands for similar products. Work with brokers like American Hartford Group that have no buyback fees. Working with these brokers will also prevent you from wasting time and money by needing to sell these coins to outside parties.
Another factor to consider when trading gold or silver within a self-directed IRA is the required minimum distributions (RMDs) that IRAs are subject to. You’re required to start withdrawing a percentage of your account when you reach age 72. These two companies allow you to sell fractions of your gold to meet but not exceed RMD requirements.
Are Krugerrands a Good Investment?
It’s no secret that the economy is in a tight spot from turbulent markets. Aside from these points, inflation is still at record highs, meaning that it could make sense to start trading gold coins.
Krugerrands are a user-friendly and affordable way to gain exposure to gold. Working with trusted partners like American Alternative Assets or American Hartford Gold Group can help you buy, sell, and trade these coins easily. You can also reduce tax liabilities by opening a Gold IRA with these partners.
Frequently Asked Questions
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No, Krugerrands are not 100% gold. They are made of 22-karat gold, which means they are 91.67% gold and 8.33% copper. This copper alloy adds durability, making the coins more resistant to scratches and wear, while each coin still contains exactly 1 troy ounce of pure gold.
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Yes, it’s completely legal to own Krugerrands in the U.S. The U.S. banned importing Krugerrands in 1985 due to apartheid-era sanctions, but the ban was lifted in 1991, so importation and ownership have both been legal since then.
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No, Krugerrands are not hard to sell. They are one of the most widely recognized and traded gold coins in the world, making them easy to sell through local coin shops, online bullion dealers, precious metals exchanges, and private collectors.
