The gold Krugerrand is one of the most popular investments when it comes to investing in gold. Minted by the South African mint, it is worth exploring.
Gold Krugerrands are as popular now as when they first came into the investment market. There are millions in circulation, and they are still seen as a profitable asset. Made with around 90% gold, this coin has been produced more than 50 million times and has retained its value for all its years. This guide focuses on how much a gold Krugerrand coin costs and how it came to be in the first place.
Currently, Krugerrands have retained value very well. Thanks largely to trading and interest, these coins in a singular denomination can be worth anything from $/£1K-$/£2K. It is a general figure, of course, but this reflects the price range depending on the quality of the coin, the price of actual gold, the area of residence, and circulation trends at the time of purchase or sale.
Specifically, one troy ounce of gold melted equals the value of the Krugerrand coin. You can track the one oz gold price, There are small fluctuations to be taken into account that happen almost constantly, as with any asset of this sort.
Given that the value of gold changes on a daily basis (with few exceptions), that means so does the Krugerrand. Its value goes up and down much like the cost of gold and therefore the price is dictated by what the market is doing in this respect.
The price will naturally be influenced by the market demand for gold, given that the two are so closely intertwined. Several industries use gold and therefore rely on being able to purchase and access it. These include technology companies, jewellery businesses that make and sell it, and central banks too. There are always organic peaks in demand for gold from consumers, and this translates into the industry as well.
How accessible gold is also dictates the price and overall value. Gold is mined in countries all the time, but that doesn’t mean the supply is always in excess. When demand outweighs availability, prices naturally shift in an upwards trajectory. Conversely, when demand for it drops, or there is more gold than there is consumer and trader interest, the cost will move downwards. This is a fairly typical economic model that happens in countries all over the world, so the Krugerrand would struggle to escape it.
Trading trends and investment interests also play a role in determining the value. Because it is so tradeable as an asset, both gold bullion in its pure form and the Krugerrand is subject to inevitable fluctuations according to economic shifts and market nuances. While this is to be expected, these types of assets are not subject to crashes or turmoil in the same way as stocks or even newer trading platforms like cryptocurrency.
Gold Krugerrands were introduced in 1967 in South Africa. It was named for both the first established president of the country Paul Kruger, and the South African rand currency. So the words Kruger rand were joined to coin the name that is still in circulation today. Much like any other coin, they are small and round. What makes them stand out is their orange hue thanks to the copper elements mixed with the gold, the face of Paul Kruger, and the South African Springbok engraved on the faces
There are a few different ideas as to why the Kruger rand was invented. Though there was one clear goal when the Krugerrand was first posed as an idea: Make gold bullion accessible to a wider range of investors. The coins do contain around a troy ounce of gold, but they are not completely gold bullion in their makeup. Regardless, the idea took off and investors today are trading and owning tens of millions of these types of coins. The other suggestion leans on these coins being a simple way to boost the currency of South Africa at the time and drive the country’s gold up.
The physical coin mixes gold and copper. Therefore, the physical appearance is slightly copper coloured with a semblance of gold too. The coins themselves are beautiful to behold, and anyone in the position of owning a collection is fortunate to be in a position of fortune.
• 91.67% precisely of gold
• 8.33% precisely of copper
Copper is used to make the coin overall hardier. It means it is much more scratch-resistant and scuff-resistant. The very fact that it is so very durable and easy to keep in a mint condition makes it a profitable venture for investors. Unlike regular old 100% gold bullion coins, the Krugerrand is far less prone to becoming aesthetically damaged and every gold trader knows, their collection has to look the part too when it comes to selling up and cashing in. The more damaged in appearance, the lower the return. This is a unique quality for gold and therefore Krugerrands because no digital asset is subject to this judgment in the same way.
The simple answer to this question is that the price of gold dictates how much a Krugerrand costs. If the price of gold is low, therefore so is the kruger rand price. Similarly, if gold is booming so is the Krugerrand gold coin. So while they are not identically, they are in fact extremely closely linked in how they circulate and how much value they pose to investors. As noted above, there are key areas that dictate the price on a daily basis. All this means is that it will change and flow according to what the economy is doing, where the market stands, and how gold represents accordingly.
So, how much is a gold Krugerrand worth? As much as the price of one troy ounce of gold is in line with most current trends. Gold, despite it being an investment asset, is a largely reliable one that sees fluctuation but is yet to crash or become as volatile as other portfolio acquisitions. Therefore, the Krugerrand gold coin price follows suit.