The Krugerrand is a modern gold builion coin of South Africa and the oldest modern gold bullion coin in the world. It is extremely popular with investors. More than 50 million have been produced and sold since 2018.
A Quick Overview of the Krugerrand
✔️What is a Krugerrand?
✔️Types of Krugerrands
✔️The manufacturing of Krugerrands
Features of Kruger rand coins
Short history of the Krugerrand
Krugerrands – Trading and investing
Authenticity of Krugerrands
A Krugerrand consists of only 91.67% gold, but it contains one full troy ounce of gold. The word ‘Krugerrand’ is a registered trademark owned by Rand Refinery Limited.
What is a Krugerrand?
The Kruger rand is a South African gold coin that was first minted on July 3, 1967, enabling individuals to own gold and to help market South African gold.
Krugerrands have no face value but are considered to be legal tender in South Africa. However, they are not intended to be used as currency.
The name of the coin is a combination of the surname of the four-term President of the former Zuid-Afrikaansche Republiek (ZAR), also called Transvaal, Paul Kruger, and the name of the South African currency, rand.
Types of Krugerrands
There are two types of Krugerrands: The Bullion Krugerrand and the Proof Krugerrand.
The Bullion Krugerrand
The Krugerrand bullion coin is a trusted bullion coin and is one of the most frequently traded gold coins in the world.
Some characteristics are a matte finish, not easy to scratch, and rounded at the etch.
Bullions Krugerrands attracts capital gains tax (CGT).
Krugerrand bullion coins are in great demand by private and professional investors, wanting to invest directly in gold bullion.
The Proof Krugerrand
Characteristics include a mirror-like frosted finish and very sharp edges.
Proof Krugerrands are not subjected to capital gains tax.
The Proof Krugerrand is a collectors’ item rather than a bullion investment.
The Manufacturing of Krugerrands
The South African Mint Company, commonly known as the South African Mint, manufactures Proof Krugerrands, and jointly manufactures the Bullion Krugerrand with Rand Refinery.
In 2017, Rand Refinery started to mint silver versions, which have the same overall design of the cold coin.
The South African Mint is a wholly-owned subsidiary of the South African Reserve Bank (SARB) and is situated in Centurion, Gauteng.
Rand Refinery in Germiston, Gauteng, is one of the largest refiners of gold globally.
Range of coins manufactured
The South African Mint yearly manufactures a specific range of coins. Each coin is limited to a certain number per year. The following sizes are manufactured:
- 1oz Krugerrand coin
The very first Krugerrand minted in 1967 was a 1oz gold coin.
The SA Mint calls it the ‘flagship product of the Krugerrand family.’
It is available for both Bullion and Proof coins.
- 1/2oz, 1/4oz, and 1/10oz Krugerrand coins
These coins were the first fractional coins to be introduced to the range in 1980.
All of them are also available as Bullion and Proof coins.
- 2oz gold proof Krugerrand coin
The 2oz gold coin was launched in 2018.
- 1/20oz gold proof Krugerrand coin
A coin introduced in 2017 as part of the fiftieth-anniversary range. Although, in the 2025 range it is only part of the ‘Krugerrand Prestige Set.’
- 1/50oz gold proof Krugerrand coin
This the smallest coin available in the Krugerrand range and was also launched in 2017 as part of the fiftieth-anniversary range. It can also be purchased as part of one of the Krugerrand sets.
- 1oz silver proof Krugerrand
This is the first silver proof Krugerrand, first introduced in 2017 as part of the fiftieth-anniversary range.
- 2oz silver proof Krugerrand
The Krugerrand family’s youngest member, which arrived in 2025.
Features of Kruger rand coins
The effigy of Paul Kruger, the former ZAR President after whom the Krugerrand was named, is depicted on the obverse. The design of the obverse was struck from the original die used in 1892 for the historic Kruger half-crown coin.
The reverse features a Springbok, South Africa’s national animal.
The actual weight of a 1oz Krugerrand gold coin is 1.09 troy ounce, equivalent to 33.93 grams. It is minted from 91.67% pure gold (22 carats), meaning that the coin contains precisely one troy ounce of gold, which equals 31.1035 grams of gold.
Copper accounts for the remaining weight (8.33%, 0.09 troy ounce, 2.828 grams). Copper is an alloy that is historically known as crown gold. Copper alloy gives the Krugerrand an orange appearance and creates a more durable coin.
Composition of some other gold Krugerrand coins
Size Weight (grams) Pure gold (%) Pure gold (carat) Gold content (grams) Gold content (troy ounces) Copper content (grams) Copper content (troy ounces)
1/2oz 16.965 91.67 22 15.552 0.500 1.414 0.050
1/4oz 8.482 91.67 22 7.776 0.250 0.707 0.023
1/10oz 3.393 91.67 22 3.110 0.100 0.283 0.009
1/20oz 1.697 91.67 22 1.555 0.050 0.141 0.005
1/50oz 0.697 91.67 22 0.622 0.020 0.057 0.002
Short History of the Krugerrand
As already mentioned, the first Krugerrand was minted in 1967, aiming to improve the sales of South African gold and providing a vehicle for private ownership of gold.
The number of Krugerrands minted have varied over the years, for example:
- From 1967 – 1969: around 40 000 coins.
- 1970: 200 000 Krugerrands.
- 1974: more than one million coins.
- 1978: six million Krugerrands.
Throughout the 1970s, Krugerrands became the prime choice for gold investors worldwide, accounting for 90% of the sales of gold coins globally by 1980.
Prior to 1985, when the United States of America banned the import of Krugerrands due to South Africa’s apartheid laws, the USA imported around 22 million Krugerrand gold coins during 1974 – 1985.
During the 1970s, but specifically during the 1980s, many foreign countries declared the import of Krugerrands unlawful because of South Africa’s policy of apartheid, consequently drastically reducing the sales of Krugerrands.
To boost the sales of Krugerrands locally, smaller coins with respectively a half troy ounce, quarter troy ounce, and one-tenth troy ounce of gold, were issued in 1980.
In the early 1990s, the South African government started political reforms which eventually culminated in a new government in 1994, representative of all the people in the country. This led to the termination of sanctions, resulting in, among other things, an increase in the production of Krugerrands.
Although only just over 23 000 coins were manufactured in 1998. However, investors worldwide began to buy Krugerrands again and their production increased considerably.
In 2017, the fiftieth anniversary of the Krugerrand was celebrated with the issuance of a number of commemorative platinum, gold, and silver coins.
Although the production of Krugerrands has varied over the years, more than 61 million Krugerrand coins have been sold since the first Krugerrand was introduced in 1967.
Undeniably, the Krugerrand is a trusted bullion coin and certainly worth its weight in gold. Indeed, one of the world’s most widely traded coins.
Worth mentioning, the enormous success of the Krugerrand inspired many other countries to mint their own gold bullion coins, such as:
- the Canadian Gold Maple Leaf (1979),
- the Chinese Gold Panda (1982),
- the American Gold Eagle (1986),
- the Australian Gold Nugget (1987), and,
- the British Britannia coin (1987).
Krugerrands – Trading and Investing
Krugerrands are the most globally recognizable and extensively traded gold coins in the world. It became the first ounce-denominated gold coin in the world to be considered legal tender, implying that it could be exchanged for products, goods, or services.
New Krugerrands are issued by the South African Reserve Bank (SARB).
Bear in mind, if you intend to trade Krugerrands you should have a secure place in which to store and protect them.
Ways to trade Krugerrands
- Through the Johannesburg Stock Exchange (JSE), which provides trading in Krugerrands through a well-regulated secondary market in the same way as any listed equity market instrument, with quoted prices based on the various weights of the coins. To be able to trade in this way, you will be required to open a brokerage account with a JSE Equity Market member.
- Through authorized dealers of Rand Refinery and the South African Mint. The names of many specialist outlets are to be found on the internet. Certain banks are also authorized to trade Krugerrands.
The value or price of a Krugerrand
Krugerrands were never assigned the value of a South African rand (ZAR). Their value is exclusively based on the spot price of one ounce of fine gold at the time they are traded. This means that when the price of gold changes, the value of a Krugerrand change.
When buying, you need to take the broker/dealer commission, which can vary from dealer to dealer, into account.
Krugerrands as investment
Generally, there are various reasons why investors are attracted to Krugerrands as an investment vehicle, such as its reliability, global liquidity, durability, timeless and iconic design, proven tradability, affordability, and high gold purity.
Being liquid, Krugerrands can be easily bought and sold, allowing quick access to cash.
In addition, Krugerrands offers accessibility to gold, making it easier to own gold. Their small size makes for easy storage.
During times of uncertainty and volatility, such as the Covid-19 pandemic, the Krugerrand offers peace-of-mind, providing financial security that it will retain its value even in an economic cave-in.
Krugerrands appeal to private and professional investors who want to directly invest in gold bullion, diversify their investment portfolios, or to hedge their portfolios.
The true measure of any type of investment’s merit is its historical performance. Regarding the performance of the Krugerrand, the following figures are quite significant, specifically the ones during 2025, the year of the Covid-19 pandemic.
The following Krugerrand prices were obtained from the website of Monex Precious Metals:
- October 27, 2025 – 1 984.90 USD/toz
435.60 USD/toz (28.11%) up from January 1, 2025.
459.50 USD/toz or 30.12% rise on a year-to-year basis.
An increase of 464.70 USD/toz or 30.57% since March 20, 2025, a week before the implementation of a hard lockdown in the country.
- August 6, 2025 – 2 158.60 USD/toz
This was the highest price ever for a one-ounce Krugerrand. The price was mainly supported by uncertainty and anxiety about the world economy, impacted by the Covid-19 pandemic and ensuing lockdowns in order to control the effects of the pandemic.
An increase of 609.30 USD/toz or 39.33% from the beginning of 2025, 231.32 USD/toz (12%) from the previous highest on September 5, 2011 and 1 059.44 USD/toz (96.39%!) from the lowest price the past ten years on December 14, 2015!
- March 20, 2025 – 1 520.20 USD/toz
The price at the initial stages of the lockdown in South Africa.
- January 1, 2025 – 1 549.30 USD/toz
- October 28, 2019 – 1 525.40 USD/toz
- December 14, 2015 – 1 099.16 USD/toz
The lowest price the past ten years.
- September 5, 2011 – 1 927.28 USD/toz
This was the highest price before the high of August 6, 2025.
Some features of gold that could be valid reasons for investors to invest in Krugerrands
The JSE website (www.jse.co.za/trade/equity-market/krugerrands) cites the following features.
- The gold market is very liquid.
- The price of the Krugerrand changes when the gold price changes.
- Gold serves as a rand hedge against the US dollar.
- Your investment is in physical gold and is not dependent on the performance of a gold mine.
- Gold has a positive track record in terms of returns and has increased in value because it is a non-renewable natural resource.
- Gold has a low to negative correlation with other asset classes, making it an effective portfolio diversifier.
In addition, gold is recyclable and a store of value.
How much of an investment portfolio to be represented by gold?
The composition of your investment portfolio depends on, among other things, your risk-profile and availability of cash. However, a combination of gold and other asset classes is the perfect balance to an investment portfolio.
Some gold experts recommend that a portfolio comprise 15% to 25% of gold as an asset.
Authenticity of Krugerrands
The world of Krugerrands trading is not safeguarded per se. You should be wary of scammers and suspicious trading opportunities. Rand Refinery warns that ‘coin fraud has been an unfortunate reality in the investment market, as well as the coin collecting marketplace for decades and is very difficult to manage.’
Rand Refinery describes six methods to enable investors to verify the authenticity of a Krugerrand, namely, size, weight, magnetic, visual, X-ray, and ultrasound. Google ‘Testing the authenticity of a Krugerrand coin’, and you will find the document.
RECOMMENDED JSE BROKER
🛡️ Trust Score
97%
Avatrade - #1 JSE Trading Platform
- Time to open Account - Only 12 Hours
- Low Commissions
- Invest in any JSE Top 40 Share
RECOMMENDED JSE BROKER
🛡️ Trust Score
97%
Avatrade - #1 JSE Trading Platform
- Time to open Account - Only 12 Hours
- Low Commissions
- Invest in any JSE Top 40 Share
Top 4 Brokers
