The Krugerrand (; ) is a
South African coin, first minted on 3 July 1967 to help market South African gold and produced by
Rand Refinery and the
South African Mint. The name is a compound of ''
Paul Kruger'', the former President of the
South African Republic
The South African Republic (, abbreviated ZAR; ), also known as the Transvaal Republic, was an independent Boer republics, Boer republic in Southern Africa which existed from 1852 to 1902, when it was annexed into the British Empire as a result ...
(depicted on the
obverse), and ''
rand'', the South African unit of currency. On the reverse side of the Krugerrand is a
pronking 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 ( , especially South African English: , ; , ) was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 to the early 1990s. It was characterised by an ...
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 Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...
in South Africa by the South African Reserve Bank Act (SARBA) of 1989.
In 2017, the Rand Refinery began minting silver versions with 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 containing of gold.
Economic sanctions against South Africa for its policy of
apartheid
Apartheid ( , especially South African English: , ; , ) was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 to the early 1990s. It was characterised by an ...
made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s, with the
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, which had historically been the largest market for the coin, banning imports in 1985: the previous year, over
US$
The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
600 million of Krugerrands had been marketed in the country.
Most of these sanctions were removed in 1991 after the South African government took steps to end its apartheid policies. The South African government still found creative ways to circumvent the sanctions.
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 in 1979,
the
Australian Nugget in 1987,
the
Chinese Gold Panda in 1982,
the
American Gold Eagle in 1986,
and the British
Britannia coin in 1987.
Properties
The coin is so named because the obverse, designed by Otto Schultz,
bears the face of
Boer statesman
Paul Kruger, four-term president of the old
South African Republic
The South African Republic (, abbreviated ZAR; ), also known as the Transvaal Republic, was an independent Boer republics, Boer republic in Southern Africa which existed from 1852 to 1902, when it was annexed into the British Empire as a result ...
. The reverse depicts a
springbok, the national animal of South Africa. The image was designed by
Coert Steynberg and was previously used on the reverse of the earlier South African five shillings (1947-51 and 1953-59) and 50 Cents (1961-64) coin. The name "South Africa" and the gold content are inscribed in both
Afrikaans
Afrikaans is a West Germanic languages, West Germanic language spoken in South Africa, Namibia and to a lesser extent Botswana, Zambia, Zimbabwe and also Argentina where there is a group in Sarmiento, Chubut, Sarmiento that speaks the Pat ...
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.
Proof Krugerrands
The South African Mint Company produces limited edition
proof 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 coin's edge. 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 carats) 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 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 ). Visitors to South Africa can export up to 15 coins by declaring the items to the
South African Revenue Service.
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's annual "
Christmas Kettle" donation jars in various cities around the country.
See also
*
Bullion
Bullion is non-ferrous metal that has been refined to a high standard of elemental purity. The term is ordinarily applied to bulk metal used in the production of coins and especially to precious metals such as gold and silver. It comes from ...
*
Bullion coin
*
Economy of South Africa
*
Gold as an investment
*
Inflation hedge
*
Silver as an investment
*
Mosi-oa-Tunya (coin)
References
{{economy of South Africa
Bullion coins of South Africa
Gold bullion coins
Silver bullion coins