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One Ounce of Gold
The South African Chamber of Mines had an inspired idea to help market South
African gold. It was to issue a one ounce bullion coin, to be sold at a very
low premium over the intrinsic gold value.
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Back in 1967
Krugerrands were first minted and issued in 1967,
and have been produced every year since. They have legal tender status in
South Africa,
which allowed them to be imported into many, but not all, countries without
import taxes, duty or VAT.
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The Krugerrand Family
Originally only one size was issued, which contained one full troy ounce
(31.1035 grams) of fine gold. This was originally known as a krugerrand, or kruger, for
short. From 1980, three other sizes were introduced, namely a half, quarter,
and tenth ounce size. Because of these, the original krugerrand
is sometimes referred to as a "full" or "one ounce" kruger or krugerrand, although
within the trade, the word kruger or krugerrand is understood to be the full sized original
one ounce version.
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British Investors
Missed Out
At the time of the kruger's introduction, it was
not legally possible for British residents to acquire bullion gold coins, so
that the krugerrand was almost unknown in
Britain until
1971.
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Low Premium Over
Gold Content
According to the publicity at the time, the kruger
was to be made available to world bullion dealers at a 3% premium over the
current gold fix, so that after distribution costs, the coins would be
available to investors in quantity at about 4% to 5% over intrinsic gold
values, and possibly 10% premium for single pieces.
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Higher Premium on
Smaller Sizes
The fractional sizes were issued at higher premiums to bullion dealers of 5%,
7%, and 9% respectively. The fractional coins have never been as popular as
the full one ounce coins, usually only being purchased as singles, so that in
practice, it would usually cost 10% to 15% premium for the half and quarter
ounce, and from 20% to 50% premium for the tenth ounce, most of which seem to
have been used in jewellery. Most bullion houses do not want the bother of
handling small quantities of low value coins.
As an example of this, in the 1970's we, as a small provincial dealer, would
frequently handle 500 krugerrands in a single day,
but a purchase of 100 tenth krugerrands was a major
event, yet it was only 1/50th the size of deal!
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Not a Pretty Sight
Krugers were never
intended to be an aesthetically pleasing coin, just a lump of gold with a
known weight and value. They certainly cannot be called pretty.
Collectors seeking aesthetically attractive coins would be better looking at
British gold sovereigns, or some of the newer bullion coins.
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Technical
Specifications
The following tables summarise the specifications of all the sizes.
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Size
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Face Value
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Weight
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Fineness
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Gold Content
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Gold Content
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Rands
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Grams
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/1.000
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Grams
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Troy Ounces
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Full
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10
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33.9305
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.917
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31.104
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1.0000
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Half
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5
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16.9653
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.917
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15.552
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0.5000
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Quarter
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2.5
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8.4826
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.917
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7.776
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0.2500
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Tenth
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1
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3.3931
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.917
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3.110
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0.1000
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Size
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Remedy (Grams)
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Min Diam (mm)
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Max Diam (mm)
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Min Thick (mm)
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Max Thick (mm)
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Edge
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1 oz
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+ 0.07
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32.61
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32.77
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2.74
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2.84
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180
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1/2 oz
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+ 0.035
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26.93
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27.07
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2.115
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2.215
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150
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1/4 oz
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+ 0.02
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21.94
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22.06
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1.788
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1.888
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140
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1/10 oz
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+ 0.01
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16.45
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16.55
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1.25
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1.35
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115
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Table Notes
We understand "remedy" to mean the excess weight which the coins
are designed to have to allow for any manufacturing tolerances.
The 1/12th of the alloy which is not gold,
is copper.
Min. = minimum.
Max. = maximum.
Diam. = diameter.
Thick. = thickness.
Edge = number of edge serrations
If you ever get bored with counting your wealth in krugerrands,
you can always check the number of edge serrations!
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Prices
Gold bullion prices fluctuate constantly. We don't try to maintain a current
price quotation on our website.
Please contact us if you wish to buy or sell krugerrands.
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Procent-påslagen, baserat på Londonbörsen s.k.
am-fix. Vi bekräftar Ert inköpspris per tel, mail eller fax. Våra priser
och villkor är mycket konkurrenskraftiga internationellt.
Dagsaktuellt pris kan Ni själva räkna ut genom att
klicka på vår länk till DEGUSSA
(Europas största guldleverantör) i Frankfurt. http://www.allgemeine-gold.de/content/allgemeine.php?id=edelmetallkurse
Baspriset för finguld är redan klart i €Euro / gram (x 1000 gram =
kilopriset i €Euro). Se på ”Fixingpreise: Verkaufpreis Unverarbeitet” dvs
Fixpris för obearbetat finguld. Lägg till 10% beroende på inköpskvantitet
samt för omkostnader.
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Postage
& Packing
Please contact Mirol Gold Invest for exact information
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REGISTRERINGSPLIKT:
Skattemyndigheten
ställer inga krav på kontroll av köparen
eller säljarens identitet eller att denne skall registreras.
PLACERA
ALLTID EN DEL AV DINA TILLGÅNGAR I GULD.
KONTANTER
LIGGER MYCKET SÄKRARE I GULD OCH ÄR DÅ INTER-NATIONELL VALUTA = GÅNGBAR ÖVER
HELA VÄRLDEN.
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Half Ounce
