Gold Krugerrand Ferret

Gold Krugerrands as an Investment

24K — Tue, 16 Sep 2008 00:40:14 +0000

In 1967, the government of South Africa minted the gold krugerrand to increase the marketing of South African gold. Although the krugerrand is considered as legal currency in South Africa, it is rarely used for that purpose. Instead, it has become a favorite of coin collectors all over the world, known as “medal coins.” This was the first coin to be valued at the monetary value of gold, or the current rate of gold prices. For example, a U.S. silver dollar is worth exactly one dollar unless it is unusual in some way that makes it more valuable to collectors. The krugerrand was originally a one-ounce piece of 22 carat gold with no monetary value imprinted on it; its value is based upon the market gold price that frequently fluctuates. Today krugerrands are made in a variety of weights, including half-ounce, quarter-ounce and one-tenth ounce.

Coin dealers and collectors often obtain krugerrands through estate sales. The price that the dealer or collector will pay depends upon the current gold market price on that particular day. For example, imagine that a family man invests in buying 100 krugerrands when the gold prices are $300 per ounce. When the man dies ten years later, the value of the krugerrands will be based upon gold prices at that time. Like any investment, buying gold krugerrands is never a “sure thing.” When the man dies, gold may be priced at $150 per ounce, meaning that the family will have lost money on the investment. However, gold prices may well be $700 per ounce, giving the family a sizeable return on the investment if they decide to sell the krugerrands. In cases like this, probate attorneys recommend that surviving heirs consult a coin dealer about the fluctuation of gold prices; knowing when to sell and when to hang on is a matter that requires professional consultation.

If you buy gold krugerrands as an investment, keep in mind that these coins are 22 carat gold; an extremely high grade in quality. Pure gold, at 24 carats, is too soft to be minted so it is “cut” with various amounts of metal to make it hard enough to mint. Novice investors often make the mistake of comparing the gold prices for jewelry items made from 18, 14, or 12 carat gold with the gold price or market value of the 22 carat krugerrand. All gold is not created equal!

The South African krugerrand was the prototype model for other one-ounce coins like the Canadian Gold Maple Leaf, the Australian Nugget, the Mexican Gold Peso, and the United States Golden Eagle. Since these coins are not as widely available as investments as the krugerrand is, they are sometimes subjects of counterfeiting. Have a coin consultant investigate the current gold price, the authenticity of the coin, and the coin’s carat weight.

Amazon Prime allows Unlimited Free Two Day Shipping on Millions of Items at Amazon

24K — Fri, 15 Aug 2008 19:37:17 +0000

I admit it, I’m an Amazon junkie. I get a lot of what I need off the web, and Amazon is one of the best ecommerce sites out there. I was skeptical when I heard about Amazon Prime and their free trial. Two day shipping free- one day shipping for $3.99. Nope, that’s not a typo, for four bucks you can ship millions of eligible items (items Amazon stocks, as opposed to it’s partners) to your house. Free for a whole month. After that they bill you an ANNUAL fee of $79.
Here’s what Amazon has to say:

Amazon Prime members enjoy the following benefits:
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After the Free Trial period, customers will be automatically charged the $79 annual fee unless they choose not to upgrade to regular annual memberships at or before the end of the trial period.

So I signed up for the free month, figured I’d order a few things and then cancel. Well the membership paid for itself when I ordered a big piece of exercise equipment. I paid an additional $4 for next day service, figuring I’d get an email explaining I couldn’t do that. Nope, next day it showed up on my doorstep. Suddenly I was able to expect 2 day delivery for free. I find myself upgrading to next day service quite a bit, it’s just nice to have what I need exactly when I want it. A month goes by, I did some math and my shipping last year was already over what a prime membership costs- so I took the plunge. I’ve been happily ordering for months- if you regularly order from Amazon it’s worth your time to take a close look at Amazon Prime.

The African Gold Krugerrand

24K — Tue, 22 Apr 2008 16:58:36 +0000

In 1967, the government of South Africa minted the gold krugerrand to increase the marketing of South African gold. Although the krugerrand is considered as legal currency, it is seldom used for that purpose. Instead, it has become a favorite of coin collectors all over the world, known as “medal coins.” This was the first coin to be valued at the monetary value of gold. For example, a U.S. silver dollar is worth exactly one dollar unless it is unusual in some way that makes it more valuable to collectors. The krugerrand was originally a one-ounce piece of 22 carat gold with no monetary value imprinted on it; its value is based upon the market value of gold that frequently fluctuates. Today krugerrands are made in a variety of weights, including half-ounce, quarter-ounce and one-tenth ounce. Since the krugerrand is considered to be a form of gold bullion, it was once illegal for American citizens to own them privately. But when the South African government declared them as legal tender, that prohibition ceased. Still, because of the practice of apartheid in South Africa, many Western countries made them illegal to import until South African political changes occurred in 1990-1994. An executive order to this effect was signed into law by President Ronald Reagan.

The krugerrand is easily identified by its picture of Paul Kruger on one side, a Boer resistance leader and four-term President of South Africa. On the other side is a picture of a springbok antelope, one of the national South African symbols. The words “South Africa” and the krugerrand’s gold weight are printed on the coins both in English and Afrikaans.

Buying krugerrands is like investing in any other type of gold. For instance, if you invested in purchasing several krugerrands in the 1980’s, the market value of gold was around $600 per ounce. When gold prices jumped in early 2008, gold ounces sold for around $1,000 per ounce. Your krugerrands, then, will fluctuate in value as gold does. Coin and gold dealers/owners must watch gold prices closely, and decide if it’s time to sell their krugerrands or hold them, anticipating a higher price.

A word of caution: in the 1980’s a silver so-called krugerrand was minted by an unknown source. On these coins, there is no mention of South Africa, and the name on one side of them is Stefans Johannes Kruger. The other side shows the springbok antelope and the words “one troy ounce fine silver.” These are not actual krugerrands since this name is a legal trademark. Collectors are urged to refrain from buying these coins.

The South African krugerrand was the prototype model for other one-ounce coins like the Canadian Gold Maple Leaf, the Australian Nugget, and the United States Golden Eagle.

Heirlooms - A Gift for Generations

24K — Wed, 12 Mar 2008 04:51:56 +0000

I still remember my first Krugerrand- it’s more summers ago than I care to admit, but one day when I was about eight, my grandfather sat me on his knee and told me he was going to give me something. With my eight-year-old mind I thought of all sorts of wonderful possibilities- candy, a new baseball, or maybe that fishing rod he was hinting about. He pulled a shiny gold coin out of his pocket. “What’s that?” I asked. “Sunshine in your future.” You may not understand it yet, but there are some things in this life that are timeless. Gold will always have value. But you don’t get to keep it- your Dad will. “Why?”, I asked. Because someday you’ll need it, and little boys sometimes misplace things. I was indignant, and then distracted by the additional gift he had. Candy. Years go by, and I had forgotten that day- until at my high school graduation my father handed me an envelope with ten Krugerrands in it. Grandpa was gone, but Dad said, “He’s here now, and it’s time you had this.” My Krugerrands went for a car- had I had a little more maturity I might have held on to them. Fortunately for me Dad did have that maturity, and quite more of them went to pay for college. We still have a few in the family, and I look forward sitting my grandson on my knee and doing the same thing- so has sunshine in his future too.