When Krugerrands were minted in 1967, the United States did not permit its citizens to own gold bullion, but it did permit ownership of foreign coins, so the Krugerrand could be bought and sold in the U.S. As the consciousness of South Africa’s apartheid—that country’s system of racial segregation—policies grew, the Krugerrand suffered from diminished interest. During the 1970s and ’80s, numerous Western countries banned the import of Krugerrands as part of enforced economic sanctions against South Africa because of apartheid. The United States banned the import of Krugerrands in 1985. These economic sanctions ended in the West in 1994 when apartheid was abandoned by South Africa. However, many U.S. investors did not realize that the ban had been lifted, which caused low volumes of U.S. imports of Krugerrands.
In 1970, South Africa was the largest gold producer in the world, holding more than 75% of the world’s gold reserves. Throughout the 1970s, Krugerrands quickly became the leading choice for gold investors. By 1980, at the peak of the gold market, the Krugerrand overwhelmingly dominated other gold investments, accounting for 90% of the world’s gold-coin market.
Locally respected and internationally acclaimed, the Krugerrand is the most widely held and actively traded bullion coin in the world with over 60 million ounces sold over the last 50 years. A brainchild of the Chamber of Mines in South African in 1967 and produced by Rand Refinery and the SA Mint, the Krugerrand tells a powerful story of resilience over time and promises investors an attractive return.
The Bullion Coin
As a legal tender gold coin with a denomination in ounces of pure gold, the Krugerrand is the only bullion coin that is conceptually worth its weight in gold. Containing 11/12 24 carat gold and 1/12 copper the Krugerrand offers a resilient 22 carat gold investment. Available in four sizes containing exactly 1 oz, 1/2 oz, 1/4 oz or 1/10 oz of pure gold, the Krugerrand offers the kind of accessibility that few other coins do.