South African Krugerrand Coin: Gold/Silver and Where to Buy

The South African Krugerrand coin is a top investment for gold and silver investors worldwide. This guide explores the history, design, and distribution of the Kruggerand coin.

It offers insights to help you decide if the Krugerrand aligns with your investing goals.

About the South African Krugerrand Coin

First minted in 1967, the South African Krugerrand is the world’s world’s first mass-produced gold bullion coin.

It was designed to promote South Africa’s gold industry by encouraging private ownership of gold.

By 1980, the Krugerrand accounted for 90% of the gold bullion market.

History

The Krugerrand was minted by the South African Mint and Rand Refinery to promote private ownership of gold and combat inflationary policies in the U.S.

This was the only option for gold investors for several years.

Seeing the success of the coin, the Canadian Mint and U.S. Mint released the Gold Maple Leaf and American Buffalo coins, respectively, to compete with the Krugerrand. 

Named for the South African Republic’s fifth president, Paul Kruger, the coin is a portmanteau of his name and the official currency of South Africa, the Rand.

When the coin was introduced it functioned as both legal tender and as an investment.

The Krugerrand was banned in Western countries during the 1980s as a way to protest apartheid in South Africa.

Despite the restrictions, over 22 million coins were shipped to the U.S. between 1967 and 1979.

Once apartheid ended in the early 1990s the Krugerrand regained popularity. To commemorate the 50th anniversary of the Kruggerand, a silver coin was introduced in 2017.

It became an annually released coin beginning in 2018 with a face value of 1 Rand.

Today both the gold and silver coins are top investment options for gold investors.

When the first Krugerrand coins were minted in 1967, they had a face value of 1 Rand and sold at the price of gold which was around $35 per ounce.

Those coins are worth several thousand dollars today.

More than 50 million ounces of gold Krugerrand coins have been sold since 1967. The South African Mint produces Krugerrand annually to keep up with demand.

Design

Both the gold and silver Krugerrand coins feature designs by Otto Schultz and Coert Steynberg.

The obverse features a portrait of Paul Kruger designed by Schultz in 1892. His image is surrounded by the inscriptions ‘SUID-AFRIKA’ and ‘SOUTH AFRICA’ in both Afrikaans and English.

The reverse depicts South Africa’s national animal, the Springbok antelope. Designed by Steynberg in 1947, the reverse includes the inscriptions:

• KRUGERRAND
• Year of issue
• FYNGOUD 1 OZ FINE GOLD 

The silver Krugerrand uses the same design of the gold coin. Instead of being inscribed with ‘FYNGOUD’ on the reverse, the silver coin reads ‘FYNSILWER 1 Oz FINE SILVER R1.’ 

The blend of gold and copper gives the coin a distinct reddish-gold color. The 2018 silver Krugerrand contains 1 Troy oz of .999 pure silver.

The Springbok design on both the gold and silver Krugerrands was previously used on the South African five shillings and 50 Cents coins.

Minting & Distribution

The South African Mint and Rand Refinery collaborate on the production of Krugerrand coins.

Initially introduced in gold, the Krugerrand series expanded in 2017 to include the first ever silver version of the Krugerrand to celebrate the coin’s 50th anniversary.

The celebration also included a Premium Uncirculated version of a 22 carat gold coin, as well as an option in .999 fine platinum.

The 2017 Silver Krugerrand was issued in “Premium Uncirculated” condition and had a mintage of one million coins.

Proof Silver Krugerrands had a limited mintage of 15,000 coins. The Silver Krugerrand is available in plastic tubes of 25 coins or boxes of 500 coins.

Proof coins are distinguished by having 220 serrations on their edge compared to 160 on bullion coins.

Proof coins come with a Certificate of Authenticity from the South African Mint and commemorative packaging. (annual mintage varies)

In 1978 more than 6 million Kruggerrand were minted while production dropped to less than 4,000 in 1992.

In 2024, the South African Mint plans to produce 1,000 1-oz gold coins.

Best Places to Buy Krugerrand Coins

I’ve listed my top 3 favorite places online that I like to buy my Krugerrand coins from.

Goldco

Goldco is a reputable precious metals dealer that offers the South African Krugerrand for direct purchase or inclusion in a gold IRA.

JM Bullion

JM Bullion is a Dallas-based online precious metals retailer with more than a decade of experience. Investors can purchase Krugerrand coins directly from the company’s website.

APMEX

Founded in 2000, APMEX is an online precious metals marketplace offering the Krugerrand.

Are Krugerrand coins a good investment?

The Krugerrand has a long history of being a reliable investment for gold investors. Both the silver and gold coins are legal tender in South Africa, adding to their appeal.

Gold can be a good option for preserving wealth while the silver Krugerrand is a low barrier-to-entry coin that offers diversification.

Evaluate your personal investing strategy to see if the Krugerrand would make a good addition to your portfolio.