How to Safely Buy Krugerrands Online

One way to invest in gold bullion is to buy Krugerrands online. It's fast and easy, but there are some pitfalls to avoid. As with any large purchase, it pays to do your research and be an informed consumer. The most common concern when buying bullion online is fraud. We are going to focus on eBay, as is probably the best known online auction site (and a great source for Krugerrands), but most of this advice also applies equally well for purchasing gold coins online from a dealer, or even a classified ad. You can find some very good deals- and of course like every public market, there are some things to be wary of.

Know Exactly What the Krugerrand is Worth

There are several ways to determine how much a Krugerrand is worth, the easiest would be to check the current Krugerrand price here on Gold Krugerrand Ferret. At the very least you need to know the spot price of gold, you can see the spot price for gold on our gold Krugerrand price page, or in any financial newspaper. Remember that Krugerrands trade above spot, the difference is called the premium, which is assessed for mintage, shipping, handling, and profit. This assumes you are buying a regular Krugerrand for its bullion value, and not a proof Krugerrand, which is valued for additional processing during the mintage.

1-4 oz krugerThe Federal Trade Commission recently put out a guide on bullion coins - with some interesting information for consumers. One item in the report that may not be familiar to novices is "Melt Value" for Krugerrands. This is an easy one- the weight is stamped on each Krugerrand (for example 1 oz), you simply look up the value for 1 troy ounce of gold and you have your melt value.

Interesting Fact: Krugerrands are actually 22K- they are mixed with copper for durability, but are a bit heavier to make sure you get the full amount of gold, so a 1/2 oz Krugerrand has 1/2 oz of gold.

Begin Your Purchase with an Investigation of the Seller

If you are going to bid on a coin on eBay, check out their feedback score. In addition for looking for positive feedback, also take account the number of transactions. For example, we would be much more likely to buy a Krugerrand from a seller with a 98% satisfaction rating and 1000 ratings, than a 100% satisfaction rating and two transactions. The longer they have been around on eBay, the more accurate the feedback.

If you are going to buy a coin from a dealer, go ahead and check them out at the Better Business Bureau. You may also want to check them out at Industry Council for Tangible Assets (ICTA), to which many gold dealers belong.

Ways to Validate Krugerrands Before the Sale

There are a few ways you can increase your confidence that you are, in fact, purchasing a genuine Krugerrand. The eBay policies on coins and precious metals are very specific; for example a replica or copy coin must be marked as such. So your first check is to read the auction carefully. Also, be very wary if the Buy it Now price is set well below spot. Would you sell a Ferrari for the price of a Honda? If it's too good to be true, it probably is.

Look for a certificate from the SAGCE (usually included with proof coins and the red leather case), or coins professionally graded by NGC or PCGS. Peter from PCGS provided the following information about coin grading advantages:

There are many benefits to having your coins graded. Namely, graded coins have more stable pricing which promotes confidence in the buying and selling of graded coins, because both parties have an approximation of what is fair. As a third-party grading company, we do not buy, sell, or appraise coins. The Authorized Dealers may be able to assist you in obtaining the information you are seeking and you may locate a dealer in your area by visiting the attached link: Moreover, you may be interested in the information offered within the price guide: and coin facts links to further research your coins.

If you do decide to have your coins graded, PCGS accepts coins through its network of Authorized Dealers and members of the PCGS Collectors Club. You may send your coins to a PCGS Authorized Dealer in your area who will then submit them to PCGS on your behalf. A list of Dealers is available on this website. If you wish to submit your coins directly to PCGS, you may join the PCGS Collectors Club. Please visit the various links on our website to learn more about how the coin grading process can enhance your coin collection. Once a member the cost of grading can be found here:

Thank You,

Customer Service Lead
Collectors Universe, Inc.
PCGS: 1-800-447-8848

Another neat way you could increase your confidence in the authenticity of an eBay Krugerrand is a new service offered by a company named We Go Look. Here's how it works. We Go Look has over 7,000 independent contractors in all 50 states, called "Lookers". You set up an account on We Go Look, and then coordinate to have a Looker in the area meet the eBay seller. They can take pictures, ask questions, and take measurements. If you have a Fisch (see more below), you could even have the Looker run the tests for you. It's almost like having a friend right there, who can go take a "Look" for you. They also provide the same service for other big ticket items, like cars, houses and boats.
We Go Look eBay Service

Ways to Validate Krugerrands After the Sale

Due to the expense, most Krugerrands are not professionally graded. In the absence of a coin dealer, or a graded, slabbed coin, a simple set of four tests can aid in the detection of fake Krugerrands.

  • Diameter
  • Shape
  • Thickness
  • Weight

You can buy the Fisch Krugerrand tester which tests all of these options for you. Or you can perform a manual check yourself using the mint's Krugerrand specifications, a digital caliper, and a digital scale.

Shipping, and How Not to Lose $1000 on a Claim

Many people don't know it, but there's pretty much one way to ship gold bullion. Registered and Insured from the US Post Office. Why? Because it's signed for and tracked at every stop between the shipper and the buyer. If it's lost, file a claim, and you can get the full value back. Ship it USPS Express? Publication 122 limits the Post Office liability to $15. How about FedEx and UPs? Nope, according to their riders, they're not liable for bullion losses. So be careful, and insist on the right shipping, or it can be a very costly mistake.

Fraud and Scams

Be alert for the warning signs of fraud. The most common forms currently involve a requests to switch payment from PayPal (which offers buyer protection, see below) to a cash transfer service, such as Western Union. Don't do this, it's almost impossible to get your money back. Also, do not switch payment to a foreign location, where asset recovery is much more complicated. Often the scammer will claim to be an intermediary for the seller, and want a "commission". Another common scam is to claim to be going abroad for a couple of week, and request the money be sent to foreign location. Unless you're dealing with a well known dealer, limit your transactions and cash transfers to the United States.

Actions to Take if Things Go Wrong

The vast majority of eBay transactions go just fine, but sometimes things go wrong. If you have a problem, your first action is to contact the seller, and give them a chance to make things right. If that doesn't work, it's time to open up a dispute. eBay has contracted with Square Trade, to handle their dispute resolutions. Here's the link to open up a dispute. Paypal also offers a dispute resolution system. Finally you can contact the Internet Crime Complaint Center (IC3), which takes Internet crime complaints from either the victim or third parties.

You can safely buy Krugerrands online as long as you exercise a bit of care and take the time check the facts.



There is some incorrect information on this page. I was a collected of proof KR’s for years starting in 1967. I was on the SA Mint mailing list which was pretty much the only way to get a boxed proof KR. In later years it was impossible to get more than one, or be added to the mailing list as a maximum of 10,000 yearly ( and often times less) was ever minted. The mailing list had a wait list but very people turned the opportunity down so very few, if any, ever made it from the wait list.
So every year my KR arrived in the red box. However, no certificate was ever sent by the mint. So the statement that “Look for a certificate from the SAGCE (usually included with proof coins and the red leather case)” is incorrect. If you get a red case proof KR, it never had a certificate from the SA Mint. It is easy to remove a proof KR from the red box and replace it with an UNC KR and people who are not aware may not be able to tell the difference. You need a mirror finish on the fields, and 220 reeds to be a proof. (The reeds are hard to count!)
The SAGCE was a commercial enterprise that made a market in encapsulating and grading proof KR’s according to their unique scale and helped increase the hysteria around them in the 70’s and 80’s. They did grade them and issue a certificate (at a price) and if in a SAGCE case should be an authentic proof KR. They were the organization that pointed out the uniqueness of a 1968 frosted proof KR and were selling them for huge premiums.
The issue with buying/selling bullion KR’s on eBay, in my opinion, is that there is a listing fee; a fee for the sale; and usually a PayPal fee for receiving payment. So bullion coins have to be marked up around 10% beyond spot price and the buyer can usually buy it cheaper from a dealer, or at Kitco. Kitco can be trusted .. eBay not so much. Again, my opinion.


Hi Brian,

Thanks for taking the time to write, it’s always nice to hear from fellow Krugerrand fans. Since the time you collected your proof Krugerrands, the South African Mint has started issuing certificates. I believe it was in the mid nineties that they started doing that. Here’s a link to the mint page for 2010 proofs that do explicitly state they issue certificates, in fact the design changes annually.
2010 Proofs

As for the reeds and finish on the proof, you are correct for the later issue coins, although the 1967 run was trial and error on finish. You can read a bit on that on our proof krugerrand page. Today’s proofs do indeed have 220 reeds, but do you know how many are on the standard circulated coins? Here’s a hint, the mint had some flaky numbers, but their reference page has disappeared. I did a post on reeds on a krugerrand, and had one of the bigger dealers in the UK chime in. Also a little non-scientific poll from the readers. I also talk about easier ways to count reeds, but it’s still a lot of work…

As for selling on ebay versus selling to a dealer, it really depends on ebay seller or the dealer. There’s certainly more risk in selling on eBay, but after doing quite a bit of research on it, it can be lucrative. Selling Krugerrands on eBay is covered thoroughly in the Selling Krugerrands eBook, which also includes tips and tricks for selling to a dealer, as well tax consequences. It’s important to have all the facts and make an informed decision. I certainly can’t fault folks for selling to a reputable dealer, but that is not always the most profitable choice, and there are steps you can take in shipping, payment, dispute resolution that ease, but not eliminate the risk.

I love to hear the opinion of knowledgeable collectors- please feel free to chime in if you find any errors or have Krugerrand advice for folks in general. It’s difficult to find experienced collectors of Krugerrands, if you’re interested in writing more on Krugerrands, drop me a line on the contact tab at the top of the page.

Andre van der Westhuizen

Good reading! I am interested in possibly investing in the future (1 oz. Kruger Rands) and appreciate any help i can get off the net. Thank you for your input.

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