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The Krugerrand (; ) is a South African coin, first minted on 3 July 1967 to help market South African gold and produced by
Rand Refinery Rand Refinery (Pty) Limited is the largest integrated single-site precious metals refining and smelting complex in the world. It was established in 1920 to refine gold within South Africa which until that time had been refined in London. History ...
and the
South African Mint The South African Mint is responsible for minting all coins of the South African rand on behalf of its owner the South African Reserve Bank. Located in Centurion, Gauteng near South Africa's administrative capital Pretoria, the mint manufactures coi ...
. The name is a compound of ''
Paul Kruger Stephanus Johannes Paulus Kruger (; 10 October 1825 – 14 July 1904) was a South African politician. He was one of the dominant political and military figures in 19th-century South Africa, and President of the South African Republic (or ...

Paul Kruger
'', the former President of the
South African Republic The South African Republic ( nl, Zuid-Afrikaansche Republiek; the ZAR; also known as the Transvaal Republic, af, Suid-Afrikaanse Republiek) was an independent and internationally recognised state in what is now South Africa, from 1852 to 1902. ...
(depicted on the obverse), and ''rand'', the South African unit of currency. On the reverse side of the Krugerrand is a
springbok The springbok (''Antidorcas marsupialis'') is a medium-sized antelope found mainly in southern and southwestern Africa. The sole member of the genus ''Antidorcas'', this bovid was first described by the German zoologist Eberhard August Wilhe ...

springbok
, South Africa's national animal. By 1980 the Krugerrand accounted for more than 90% of the global gold coin market and was the number one choice for investors buying gold. However, during the 1980s and 1990s, Krugerrands fell out of favor as some western countries forbade import of the Krugerrand because of its association with the
apartheid Apartheid (South African English: ; , segregation; lit. "aparthood") was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 until the early 1990s. Apartheid wa ...
government of South Africa.Bob Secter (02 Oct 1985
Reagan Bans Imports of S. Africa Krugerrand
The Los Angeles Times, accessed 28 June 2018
Although gold Krugerrand coins have no face value, they are considered
legal tender Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in paym ...
in
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. With over 59 million people, it is the world's 23rd-most populous nation and covers an area of . South Africa has three capital cities: e ...
by the South African Reserve Bank Act (SARBA) of 1989. In 2017, the Rand Refinery began minting silver versions, which have the same overall design as the gold coin.


History

The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. It was minted in a copper-gold alloy more durable than pure gold. By 1980 the Krugerrand accounted for 90% of the global gold coin market. That year, South Africa introduced three smaller coins with a half
troy ounce 1 troy ounce (1.097 avoirdupois ounces, 31.1 g) coin example (Platinum Eagle) A Good Delivery silver bar weighing Troy weight is a system of units of mass that originated in 15th-century England, and is primarily used in the precious metals indu ...
, quarter ounce, and tenth ounce of gold. Economic sanctions against South Africa for its policy of
apartheid Apartheid (South African English: ; , segregation; lit. "aparthood") was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 until the early 1990s. Apartheid wa ...
made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. The
United States The United States of America (USA), commonly known as the United States (U.S. or US), or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major self-governing territories, 326 India ...
which had historically been the largest market for the coin, banned imports in 1985; the previous year, over US$600 million of Krugerrands had been marketed in that country. Most sanctions ended in 1991, after the South African government took steps toward ending its apartheid policy. Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.


Variations and imitations

During the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide. Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the
Canadian Gold Maple Leaf The Canadian Gold Maple Leaf (GML) is a gold bullion coin that is issued annually by the Government of Canada. It is produced by the Royal Canadian Mint. The Gold Maple Leaf is legal tender with a face value of 50 Canadian dollars. The market val ...
in 1979, the
Australian Nugget The Australian Gold Nugget is a gold bullion coin minted by the Perth Mint. The coins have been minted in denominations of oz, oz, oz, oz, 1 oz, 2 oz, 10 oz, and 1 kg of 24 carat gold. They have legal tender status in Australia and are one of ...
in 1987, the
Chinese Gold Panda The Chinese Gold Panda () is a series of gold bullion coins issued by the People's Republic of China. The Official Mint of the People's Republic of China introduced the panda gold bullion coins in 1982. The panda design changes every year (with a ...
in 1982, the
American Gold Eagle The American Gold Eagle is an official gold bullion coin of the United States. Authorized under the Gold Bullion Coin Act of 1985, it was first released by the United States Mint in 1986. Because the term "eagle" also is the official United St ...
in 1986, and the British
Britannia coin Britannia coins are British bullion coins issued by the Royal Mint in gold since 1987, in silver since 1997, and in platinum since 2018. The coin patterns feature various depictions of Britannia, a feminine personification of the United Kingdom. ...
in 1987.


Properties

The coin is so named because the obverse, designed by Otto Schultz, bears the face of
Boer Boers () ( af , Boere) refers to the descendants of the proto-Afrikaans-speaking colonists of the eastern Cape frontier in Southern Africa during the 18th and much of the 19th century. From 1652 to 1795, the Dutch East India Company controlle ...
statesman
Paul Kruger Stephanus Johannes Paulus Kruger (; 10 October 1825 – 14 July 1904) was a South African politician. He was one of the dominant political and military figures in 19th-century South Africa, and President of the South African Republic (or ...

Paul Kruger
, four-term president of the old
South African Republic The South African Republic ( nl, Zuid-Afrikaansche Republiek; the ZAR; also known as the Transvaal Republic, af, Suid-Afrikaanse Republiek) was an independent and internationally recognised state in what is now South Africa, from 1852 to 1902. ...
. The reverse depicts a
springbok The springbok (''Antidorcas marsupialis'') is a medium-sized antelope found mainly in southern and southwestern Africa. The sole member of the genus ''Antidorcas'', this bovid was first described by the German zoologist Eberhard August Wilhe ...
, the national animal of South Africa. The image was designed by
Coert Steynberg Coert Steynberg (7 January 1905 – 28 July 1982) was a renowned South African sculptor who worked in stone, marble, bronze, copper and wood. His work is represented nationwide and internationally, including a statue of Bartholomew Dias in South Af ...
, and was previously used on the reverse of the earlier South African five shilling coin. The name "South Africa" and the gold content are inscribed in both
Afrikaans Alaric speaking Afrikaans. Afrikaans (, ) is a West Germanic language spoken in South Africa, Namibia and, to a lesser extent, Botswana, Zambia and Zimbabwe. It evolved from the Dutch vernacular of Holland (Hollandic dialect) spoken by the Dut ...
and
English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national identity, an identity and ...

English
(as can be seen on the pictures of the coin). The word "Krugerrand" is a registered trademark owned by Rand Refinery Limited, of
Germiston Germiston is a small city in the East Rand region of Gauteng, South Africa, administratively forming part of the City of Ekurhuleni Metropolitan Municipality since the latter's establishment in 2000. It functions as the municipal seat of Ekurhul ...
.


Proof Krugerrands

The South African Mint Company produces limited edition
proof Proof may refer to: * Proof (truth), argument or sufficient evidence for the truth of a proposition * Alcohol proof, a measure of an alcoholic drink's strength Formal sciences * Formal proof, a construct in proof theory * Mathematical proof, a co ...
Krugerrands intended to be collectors' items rather than bullion investments. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 edge serrations, while bullion coins have 160.


50th Anniversary Krugerrands

2017 marked the 50th year of issuance (1967–2017) and to commemorate the anniversary, the South African Mint produced "Premium Uncirculated" versions in gold (.916 or 22 carat) and for the first time also in platinum (.999 fine) and silver (.999 fine). The issue limit for these commemorative platinum, gold and silver coins was 2,017 for platinum, 5,000 for gold and 1,000,000 for silver. The commemorative issues are distinguished by a '50' privy seal mark above the springbok design on the reverse for the platinum and silver issues and to the right of the springbok design on the gold issues. In addition to the "Premium Uncirculated" issue, 15,000 silver "Proof" krugerrands were also issued as well as "Proof" krugerrands in gold and platinum.


Export Control

The
South African Reserve Bank The South African Reserve Bank (SARB) is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial condit ...
restricts the exportation of Krugerrands by a South African resident to a non-resident to a maximum of R30,000 (about US$2,100 or 1,870 Euro as of June 2018). Visitors to South Africa can export up to 15 coins by declaring the items to the
South African Revenue Service The South African Revenue Service (SARS) is the revenue service (tax-collecting agency) of the South African government. It was established by legislation to collect revenue and ensure compliance with tax law. Its vision is to be an innovative ...
.


Charitable donations

In the 21st century, Krugerrands have received media attention in the United States after anonymous donors have left the valuable coin in the
Salvation Army Salvation (from Latin: ''salvatio'', from ''salva'', 'safe, saved') is the state of being saved or protected from harm or a dire situation. In religion and theology, ''salvation'' generally refers to the deliverance of the soul from sin and its co ...
's annual "
Christmas Kettle#REDIRECT Christmas Kettle {{R from move ...
" donation jars in various cities around the country.


References


External links


Krugerrand Value.KrugerrandRand RefineryThe South African Mint CompanyGold Ounce (1 oz) Krugerrand, Coin Type from South Africa
{{economy of South Africa bullion coins currencies of South Africa gold coins