The South African Krugerrand is the most traded gold coin worldwide. The coin is worth a lot, especially with the high gold price. The currency was created in the 1960s by the South African government. The Krugerrand was initially intended as a means of payment, but increasingly became a tool in the gold trade. It is possible to buy and sell the Krugerrand at most gold dealers. The Krugerrand is a South African gold coin. It is an important collector’s item. The first coin was minted in 1967. In this way, the South African government wanted to draw more attention to the large gold production in the country. The coin was issued by South African Mint. The coin quickly became popular and by 1980 Krugerrands accounted for 90 percent of gold coin production worldwide. The Rand is the currency of South Africa and the coin is named after Kruger. Kruger was one of the leaders of the peasant uprising against the British. He was also the fifth president of the South African Republic. Kruger is seen as one of the most important politicians in the history of South Africa.
Boycott against the Krugerrand because of apartheid
The Krugerrand was disputed in the west. This was because South Africa’s politics were controversial. At this time, apartheid prevailed in South Africa. The word ‘apartheid’ is one of the Dutch words that has found its way into English. It came down to the fact that the white and black people in South Africa lived separately. The ruling white elite did not think that both groups could live together and thought it would be better for both groups to live separately. In practice it meant that the white population oppressed the black population. They had fewer rights, even though they constituted a majority of the population. South Africa continued to receive a lot of criticism for this, especially from the west. This took place in the sixties and seventies. An economic and cultural boycott was imposed against South Africa. This only ended with the release of Nelson Mandela in the early 1990s.
Trade in the Krugerrand
The Krugerrand was originally intended as a means of payment, but the coin increasingly took on a different role. It became a means for private ownership of gold. The Krugerrand was issued by a country with a reliable economic reputation and therefore investors knew exactly how much gold was in the Krugerrand. Because the Krugerrand was minted in large quantities, it was possible to collect many of them. South Africa was able to distribute the coin in large numbers because it had a lot of gold in the ground and a large mining industry. As a result, a lot of gold was won. Despite the boycott from the west, a large number of the coins still found their way to the west. Nowadays, the rising gold price has also increased the demand for the coin. People can buy and sell Krugerrands at most gold dealers. The coin is worth a lot. You can view the current rate of the Krugerrand online.
Trade gold coins
In the early 1980s, ninety percent of gold coin transactions worldwide involved the Krugerrand. The success of this coin led to several other countries also issuing their own gold coins. Canada introduced the Gold Maple leaf in 1979, Australia in 1981 with the Nugget, the United States in 1986 with the American Gold Eagle and Great Britain with the Brittanica. At the beginning of 2011, there were 46 million Krugerrands in circulation.
Composition of the Krugerrand
The obverse of the coin features an image of President Paul Kruger, while the name of South Africa is written in both Afrikaans and English. The reverse shows an antelope and the year the coin was minted. Each coin weighs 33.93 grams and consists of 91 percent pure gold. The coin is 22 carats. The rest of the coin consists of copper. In 1990, coins were also issued that consisted of half, a quarter and a tenth of gold.