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Why Invest in Krugerrands?

Author: Ian Davis - Chief Operations Officer

Published: 1 Aug 2016

Last Updated: 19 Jan 2024

Synopsis

With the introduction of the Krugerrand in 1967, South Africa became the first country to issue a modern, low-premium bullion gold coin. The most obvious attribute of the Krugerrand, which clearly contributed to its success, was its convenient and easy-to-remember gold content exactly one ounce.

Nearly all previous gold coins contained irregular amounts of gold, making it more challenging to quickly determine or calculate the precise value of one's investment. The success of the Krugerrand, or Kruger as it is commonly known, led to the production of many millions of coins. In 1980, South Africa introduced fractional sizes containing half an ounce, a quarter of an ounce, and one-tenth of an ounce of fine gold. Numerous other countries also followed South Africa's lead and created their own versions of one-ounce gold bullion coins, often including fractional sizes as well.

What Is a Krugerrand?

Named after the esteemed former South African President Paul Kruger and the country's currency, the RAND, this coin quickly became a legend. Following its rapid rise to legendary status, this iconic coin has now been in circulation for five decades, with sales surpassing 60 million ounces, equivalent to an impressive 1558 tons of gold. Today, it remains the most trusted and globally recognised gold bullion coin.

The Gold Krugerrand

The Krugerrand was the first modern one ounce bullion coin and it took the world by surprise. Produced by the Rand Refinery in South Africa, the Krugerrand was a brilliant way to utilise the huge amounts of gold that the mines were producing by bringing investment gold bullion in the form of coins to the average man in the street. Suddenly, everyone could be a gold investor.

With a full troy ounce of 22-carat gold, weighing 33.93 grams, the Krugerrand gold coin has maintained its identical obverse and reverse designs since 1967, and there are no indications of this changing in the foreseeable future.

For additional insights, please visit our blog on the History of the Gold Krugerrand.

The Silver Krugerrand

Despite its relatively recent introduction in 2017, commemorating the 50th anniversary of the gold Krugerrand, the silver Krugerrand coin has quickly established itself as a prominent 1 oz silver bullion investment.

Featuring a face value of R1 (1 Rand) and containing 1 troy ounce of 999 fine silver, weighing 31.107 grams, it provides a tangible and popular option for collectors and investors looking to incorporate silver into their portfolios.

The 2024 Krugerrand Range

If you're interested in investing in the new 2024 Krugerrands, we have partnered with the South African Mint, allowing us to provide you with these newly released 2024 Krugerrand bullion coins. Given the high demand for these coins, we recommend purchasing our 2024 Krugerrand coins as soon as possible to avoid longer waiting times.

2024 Krugerrand 1 oz Gold Coin

Reasons Why To Invest in Gold Krugerrands

For investors, gold Krugerrands are often considered one of the better buys due to several key advantages.

  • They are readily available
  • They are VAT free
  • Their value is easy to monitor
  • The most traded 1 oz gold bullion coin
  • They are easy to buy
  • They are easy to sell
  • They can be bought at low premiums over the gold price
  • They can be sold at small discounts below the gold price 
  • As 22ct gold, they are more durable than 24ct.

Do I Pay Tax on Krugerrands?

In the United Kingdom, all investment gold is VAT free. However, as Krugerrands are not legal tender sterling they are liable for Capital Gains Tax (CGT) in the UK if - and only if - your profit exceeds the CGT threshold for the tax year in which you come to sell them. Do not let the CGT put you off. If you are unlikely to exceed the capital gains tax threshold then the low premiums on Krugers makes them a very attractive investment.

Where Can I Buy Krugerrands?

If you're interested in purchasing Krugerrands and are looking for the lowest premium options, our Best Value 1 oz Gold Krugerrand coin range is the ideal choice. These coins represent our most budget-friendly 1 oz South African Krugerrands, and they include a variety of Krugerrand dates in secondary market condition (pre-owned), randomly selected from our available stock.

Furthermore, investors have the option to choose our Krugerrand 1 oz Minty Gold coins, which are part of our Krugerrand range and are in near-mint condition. These coins will be randomly selected from our in-stock Krugers, though investors should anticipate a slightly higher premium compared to our best value range.

Krugerrand collectors can also look forward to benefiting from our extensive range of proof Krugerrand coins, offered in various formats: as individual coins in capsules, presented in boxes with certificates of authenticity, or available as multiple-coin Krugerrand sets, catering to the diverse needs of coin collectors.

All our coins on our website can be bought easily online. if you do not see what you are looking for or would like assistance, call our team on 01253 343081  and we will be happy to talk you through the process.

1 oz Krugerrand Gold Coin Best Value - Secondary Market

1ozkrugerrandbestvalue500-B-1

Quantity Premium % Total
1
2
£1,952.41

Price Per Item:
£1,952.41

Est UK Delivery
£7.00
5
1.95
£9,757.30

Price Per Item:
£1,951.46

Est UK Delivery
£12.00
10
1.9
£19,505.00

Price Per Item:
£1,950.50

Est UK Delivery
£19.00
25
1.85
£48,738.50

Price Per Item:
£1,949.54

Est UK Delivery
£38.00
50
1.8
£97,429.00

Price Per Item:
£1,948.58

Est UK Delivery
£75.00
100
1.75
£194,763.00

Price Per Item:
£1,947.63

Est UK Delivery
£155.60
200
1.7
£389,334.00

Price Per Item:
£1,946.67

Est UK Delivery
£285.60
500+
1.65
£972,855.00

Price Per Item:
£1,945.71

Est UK Delivery
£689.20

Gold 1 oz Krugerrand Bullion Coin - Minty

1ozkrugerrandbestvaluenew500-B-1

Quantity Premium % Total
1
2.4
£1,960.07

Price Per Item:
£1,960.07

Est UK Delivery
£7.00
5
2.35
£9,795.55

Price Per Item:
£1,959.11

Est UK Delivery
£12.00
10
2.3
£19,581.50

Price Per Item:
£1,958.15

Est UK Delivery
£19.00
25
2.25
£48,930.00

Price Per Item:
£1,957.20

Est UK Delivery
£38.00
50
2.2
£97,812.00

Price Per Item:
£1,956.24

Est UK Delivery
£76.00
100+
2.15
£195,528.00

Price Per Item:
£1,955.28

Est UK Delivery
£156.60

What Is the Price of a 1 oz Krugerrand?

When you are buying Krugerrands, the price of a one ounce Krugerrand is:

Live Gold Price + Premium = The Price You Will Pay

Based on live gold price right now the price you will pay will be from £1,923.87 with premiums starting from 0.5%

This price fluctuates with the live gold price and the premium may change. The more you buy, the less you will pay per coin. At Chards, we display the premiums on our website. We believe this transparency helps you compare our prices and also to monitor the price of gold whilst you are choosing the right time to buy. Premiums do change and if you are on our mailing list you will receive emails with timed special offers that may not be available on our website!

What Price Can I Sell My Krugerrand for Today?

Our typical purchase price for Krugerrands usually reflects a discount of around 2% off the current live gold price. However, variations in supply and demand can result in slight fluctuations, leading to discounts that may be slightly higher or lower. Given the continuous fluctuation of the live gold price throughout the day, it is advisable to compare discounts based on percentages rather than relying solely on the price at any given moment.

We are currently offering £1,856 per coin. 

How Can I Sell Krugerrands in the UK?

We are based in the UK, so all of our advice is tailored to the UK and the answer to this question is very easily!  We try and make our buying and selling procedures as easy and transparent as possible.

To sell your Krugerrands, all you need to do is either bring them to our Blackpool showroom or send them via post. Once received, we will promptly provide a price quote and proceed with payment. Full instructions can be found on our 'Sell To Chard' page. Payment options include bank transfer, cheque, or cash, and we typically process payments on the same day the deal is finalised.

Chard are always interested in buying Krugerrands and other world bullion coins, regardless of whether you have a single coin or a large quantity.

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