The South African Krugerrand is one of the most iconic coins in history. In fact, it’s so popular that its name is synonymous with gold bullion. The Krugerrand has also become one of the most popular investments in the world today. Here we’ll explore how this unique coin came into being and why so many people love purchasing them.
Gold mining in South Africa dates back thousands of years; archaeologists have found evidence that humans have been mining for this precious metal there since prehistoric time. South Africa had been the world’s largest producer of gold up until 2006.
The South African Krugerrand was first minted in 1967. It was supposed to introduce the world to South African gold. They were the first gold coins to be minted by the South African Mint and they were made of 22 carat gold and featured a portrait of Paul Kruger on one side, who was president of the country from 1883 – 1900. The Krugerrand was the first bullion coin to be used for investment purposes by the general public.
US Banned Import of the South African Krugerrand
The Krugerrand does also have its controversies. As they gained more popularity worldwide, people from other countries started taking notice of South Africa’s apartheid polices throughout the country. Because of this, countries started placing sanctions on South Africa and the US even banned the import of Krugerrands in 1985.
Around this time the US also introduced their American Eagle coin in 1986 to compete with the South African Krugerrand. It has taken off since then and they are a very popular investors item. A modern example is the 2020 1 OZ Gold American Eagle BU is the 35th issue. It’s composed of 1 Troy ounce of actual gold. Its obverse side features Lady Liberty holding a torch in her right hand and an olive branch in her left.
However around 1991-1994 sanctions and import bans started being lifted on South African Krugerrands. Today you can buy and sell them freely. The South African Mint releases new versions each year such as the 2020 South African Silver Krugerrand 1 OZ Silver. The obverse depicts Paul Kruger, a former president of South Africa, facing the right. The reverse side portrays a springbok, South Africas national animal, in the savannah.
These days most people know about Krugerrands because they’re popular investments among collectors or investors who want to invest their money safely without losing too much value over time. Do you own any Krugerrands?
