What are Krugerrands and important facts related to it?

Posted by Jessica Beak on June 4th, 2018

Krugerrands are South African gold coins which were first minted in 1967. The name of the coin is derived by combining Paul Kruger's surname with the word “rand” which is South Africa's national currency. The purpose of doing so was to help market South African gold. Though these coins have a legal tender notice status in South Africa, they cannot be used as a currency. Krugerrands are trademarked by Rand Refinery Limited.  One can trade in these gold coins and for this; they need to check for Best prices for Krugerrands. 

What makes Krugerrands so popular? 

• They have legal tender value since they were minted for the first time in South Africa. Though it does not have any monetary face, it can be used for the exchange of cash value which is equivalent to 1oz of gold. 

• You can buy Krugerrand coins by paying less than what is required with American Gold Eagle and Canadian Gold Maple Leaf. 

• They are officially issued by the government. It means that they are recognizable across the world and you can sell them anywhere, without facing any difficulty related to verification of its authenticity. 

• One the biggest advantage associated with Krugerrand is its popularity. It is world widely traded bullion coin. It means that with full confidence you can buy them as you will find a significant number of buyers for it when you want to sell it. 

Some important features of Krugerrands are discussed below: 

• Investment in physical gold is never dependent on the performance of a gold mine. 

• It is an effective portfolio diversifier as it has a really less negative correlation with other asset classes.
• The gold market is highly liquid and if the price of gold changes then price of the Krugerrands will also change. 

• As it is a non-renewable natural resource it holds a positive track record in term of returns it can offer. 

If you want to get Krugerrands then you need have a brokerage account. Krugerrands are the best choice for those looking for advantageous gold coins as these 22-carat gold coins are most famous South African coins. It is a secured form of investment. You can make an investment in it but try to keep your portfolio diversified by investing in other asset classes as well.  best price for selling krugerrands must be known for making a wise investment in it. South African gold Krugerrands are equally suitable for making an investment like other forms of gold coins are.