The South African Krugerrand is a 1oz gold bullion coin which contains exactly one troy ounce of gold. The bullion coins are manufactured by the Rand Refinery and minted by South African Mint.
Gold Krugerrands were designed specifically as investment gold coins in the 1960s and from in the global gold market.
GoldCore has supplied the Krugerrand to investors in Ireland for more than ten years. We are also the biggest suppliers of gold bullion coins and bars in Ireland.
Krugerrands can be purchased by Irish investors at low premiums due to the vast global marketplace which keeps prices competitive. Furthermore, GoldKrugerrands are VAT free in Ireland since they are classified as investment gold by EU law.
The Krugerrand is a durable coin that contains exactly 1oz of gold.
It small from 22 carat gold with a fineness of .9167 or 11/12 gold. It contains 11 parts of gold to 1 part of copper. It creates an alloy known as a crown coin, which provides strength and durability to the coin.
The Krugerrand contains exactly one troy ounce of fine gold (31.103grams) and a gross weight of 1.0909 oz or 33.93 grammes. Its diameter measures 32.77mm with a thickness of 2.84mm and 180 serrations on the rim.
The obverse of the coin has the profile of Paul Kruger while the back bears the image of the Springbok, South African’s national animal.
The Krugerrand is a legal tender in South Africa with a nominal face value of 10 Rand.
History of The South African Gold Krugerrand
The Krugerrand is named after a former president of the South African Republic (Transvaal Republic), Paul Kruger. He presided in the late 1800s and is famous as the South African leader of the Boer Republics who declared war and fought the British during the 1899-1902 Boer War.
Irish Regiments in the British Army such as the Munster Fusiliers, Dublin Fusiliers, The Royal Irish Fusiliers and the Connaught Rangers fought in the Boer war. These units were brought together to form the Irish Guards by order of Queen Victoria as a way to commemorate the Irishmen who fought in the Boer War.
Irishmen also fought alongside the Boer against the British during the famous Irish Transvaal Brigade commanded by Major John Macbride. This brigade was initially made up of Irish and Irish-American gold miners from the Transvaal. Volunteers from Ireland and America travelled to join the Irish Brigade swelling its ranks to 500 men at its height. It is one of the few conflicts where Irishmen fought against each other.
Remarkably, the grandfather to Stephen Flood (a director at GoldCore), Commandant Sean O'Neill, served during the Boer War in MacBride's columns.
The name "Rand" in the coins name comes from the South African currency, which is in turn named after the world's largest gold-producing area in the world- the Witwatersrand gold reef in the Transvaal.
The South African Chamber of Mines devised the Gold Krugerrand as a means of marketing South African gold to investors globally. Although the first coins were minted in 1967, mass production for the international market commenced in 1970.
Four leading South African gold mining companies namely Goldfields, Harmony, AngloGold Ashanti, and DRDGOLD own Rand Refinery, which is a private corporation. The refinery is located in Germiston in the east of Johannesburg and is the single largest gold smelting and refining site in the world. It has refined more than ¼ of all the world's mining output.
Rand Refinery is considered by the global gold market as one of the world's top precious metal refineries. The factory produces the coin blanks for the Krugerrand coins, after which the South African Reserve Bank authorises the South African Mint Company to refine and sell the bullion coins through a network of distributors in South Africa and internationally.
The South African Mint Company is a wholly owned subsidiary of the SARB and retirement in Centurion, which is between Pretoria and Johannesburg.
It is critical for Irish investors to consider where to store their gold investments carefully. The compact size, portability and durability of Krugerrand bullion coins make them easy to store. However, their high value demands secure storage considering the rising risk of home burglaries in Ireland.
For gold bullion investors, two major options can an excellent
- Storing the Krugerrand bullion coins at your address but only after ensuring you have adequate security and insurance.
- Utilising a little insured and secure storage options from a third party.
Irish investors benefit from GoldCore's fully insured and safe facilities in global locations such as USA, Switzerland, Asia and UK. We have partnered with Sentinel Vaults, the leading document storage safe deposit box company in Ireland to provide secure storage at a discounted price. The Sentinel vault facility is located in Ballsbridge, Dublin 4.
The Krugerrand coin was specifically intended to be a globally traded investment gold bullion coin. It has a simple design and contains exactly one ounce of gold, which makes it both low cost to mint and comes with a small premium over the spot gold price. It is also easy and affordable for investors to follow its value using the international spot price of gold.
Since 1970, more than 47 million Gold Krugerrands have been sold worldwide. It creates a highly liquid and extensive secondary market. The Rand Refinery under exclusive authorization by the SARB refines and sells the coins through a sophisticated network of distributors in South Africa and around the world.
Krugerrands are issued to the market through the Johannesburg Stock Exchange in South Africa. In the international market, the coins are issued through authorised distributors by the Rand refinery, from where local banks and dealer can then purchase them.