Krugerrands at Auction
You can buy a gold Krugerrand and invest in gold bullion. The Krugerrand was designed from the beginning as an investment vehicle, click the pictures or the headlines below to read about each of the available Krugerrands on the market.
Proof Gold Krugerrands are more the domain of coin collectors than investors. This doesn't mean they don't carry the same intrinsic value from their gold content- rather the rarity of the proof (slightly over 100,000 proofs have been minted in the forty years the Krugerrand has been in existance), as well as the special qualities of a proof Krugerrand add a premium. Many people wonder why a proof Krugerrand stands out (and demands that premium price). Like many things in life, the quality of the result is a direct reflection on the preparation. The gold/copper alloy (11 parts gold to 1 part copper for strength) from the Rand Refinery is specially polished for a proof Krugerrand run. The dies used to stamp the Krugerrands receive a similar treatment. Proofs are typically hand loaded into the presses- and are "double stamped" (stamped twice) to ensure the maximum contrast and clarity in the image. Finally many are specially packaged by the mint, both in distinctive "red boxes" from the South African mint, or encased in plastic by numismatic grading services.
One full troy ounce of pure gold. Krugerrands, which are actually twenty-two carats, are an alloy of gold and copper. There actual ratio is about 91.7% gold to 8.3% copper. To compensate for the copper content, the one ounce Krugerrands are actually a little heavier than an ounce. By doing this, they keep the weight standard, and assure you get what you're paying for - one full ounce of pure gold. Interesting enough, when the original Krugerrands were introduced in 1967, they deliberately left a denomination off them, but made sure they were legal tender. Each Krugerrand is stamped with the weight of the gold bullion inside- clearly marking it as an investment vehicle. This allowed international investors, most notably Americans, to purchase Krugerrands as a means to acquire a personal store of gold.
Weighing in at almost 17 grams, the 1/2 oz Krugerrand is substantial. Second only the the original in weight, it provides a nice balance of affordability and the power of owning the tangible, hard asset of gold. The half ounce has been struck for about thirty years, and available to the international investor for about twenty years (international sanctions had previously prohibited it's purchase). In that time it has come to be synonymous with gold ownership, and the independent spirit of the small investor. They're one of the few gold coins to be well known not only by gold merchants, but the regular public as well. One million dollars in Krugerrands made an appearance in the plot of Lethal Weapon 2, and in real life, $400,000 in gold Krugerrands helped buy a house in Sarasota, Florida in May of 2008. You may never own gold bars like those stored in Fort Knox, but you most definitely can collect Krugerrands.
In good times and bad, man has invested in gold. Over the last decade the price of gold has been steadily climbing up. The 1/4 oz gold Krugerrand offers an attractive investment vehicle for you and I- the smaller size of the Krugerrand puts it within reach of small investors. The South African Mint stamps out these little works of art from gold blanks supplied by the Rand Refinery. When the first Krugerrand was stamped out it didn't have a value printed on, for a good reason. The sole purpose of the coin is as an investment vehicle for gold and owning 1/4 troy oz of gold has never been easier, or more beautiful. What is stamped on coin, next to the Springbok antelope (a national symbol of South Africa), is the weight in gold. The Krugerrand is the most popular gold coin- with more Krugerrands in circulation than all other gold coins combined.
Weighing in at 3.4 grams the 1/10 oz gold Krugerrands are the least expensive way to buy Krugerrands for the small investor. 22 carats of gold (if you're looking for a 24K gold coin, you may want to consider Canadian Gold Maple Leaf coins), yet still a full 1/10 oz of pure gold they make an attractive present for young people, as well as frequently being mounted to jewelry, particularly necklaces, where the natural beauty of the coin is enhanced with a decorative frame. An interesting side note is that there are usually slightly higher premiums on the fractional Krugers than on their larger full 1 oz cousin. Alloyed with copper they have a warm yellow gold color and impart a feeling of security that only gold can give. They were introduced in 1980 after the phenomenal success of their larger 1 oz cousin, and have been popular with coin collectors and investors alike.
So you're comfortable investing in Krugerrands, and have some knowledge about the safety and security of gold. Perhaps you are tired of the chaotic financial markets, and want to own a tangible store of value. Krugerrand sets and lots allow you to purchase multiple Krugerrands quickly and easily. You can find a roll of Krugerrands from the South African mint, or perhaps you are interested in a full proof set. Sets are best purchased by experienced investors, who understand the premiums that they bring, and why. For example Proof Krugerrand sets are more valuable due to their limited mintages, highly polished blanks and the fact that they are double stamped.