Investment and trading opportunities have multiplied the world over. Each also presents its own distinct risks and benefits, advantages and disadvantages. The Krugerrand is a highly popular investment option.
What are Krugerrands?
The Krugerrand is a type of gold coin minted in South Africa. It has steadily risen to become the world’s most widely held and actively traded bullion coin. The coins were named after Paul Kruger, the 5th President of South Africa.
In the 1970s, when prospects on the market were looking favourable, the coin became the top choice for investing in Gold. To date, there are 60 million Krugerrands that have been sold worldwide.
Each Krugerrand is made of 22 carats that are divided into four sizes according to weight containing 1oz, ½ oz, ¼ oz or 1/10 oz of pure gold bullion.
The coin’s value is inextricably linked to their gold content, which allows them to retain their value in a variety of economic conditions.
How are Krugerrands bought and sold?
An advantage of owning Krugerrands is that it allows investors to buy and trade gold on the international market in a form that is easily exchanged.
Gold is a trusted and steady way of storing monetary value in a fixed asset. It’s a wealth preservation method that has weathered a lot of storms. Gold has a distinct advantage over other forms of investment, such as commodities and shares.
A unique aspect of Krugerrands is that they can be bought and sold in a variety of establishments, such as coin dealers, banks, collectors, businesses, etc. This makes the coins a highly liquid investment.
How to measure their value:
The Krugerrand is measured according to its gold content. The specific value to any point in time can be calculated based on the current gold price.
Rand Refinery is the largest single-site refining and smelting complex for precious metals in the world. It is the sole supplier of gold bullion to make the coins.
Legal tender in South Africa, Krugerrands are one of the few gold assets in South Africa that do not have to be melted down to be resold, but can be used in their current form.