How the Krugerrand Revolutionized the Global Gold Market: Origins, Influence & Investment Benefits

How the Krugerrand Revolutionized the Global Gold Market

First Gold Bullion Coin, and Its Origins

The well-known Krugerrand first made its debut in South Africa in 1967. Designed to streamline ownership for people hoping to buy gold, this helps demonstrate gold attractiveness in South Africa. With about 75% of all the gold reserves in South Africa, the nation ranked highest among gold producers worldwide in 1970. This coin dominated the gold coin market by 1980, accounting for 90%.

Specifications & Krugerrand Designs

The Krugerrand is different from other gold coins in both how it looks and how it is formed. There is one troy ounce of pure gold and copper used to make this 22-karat gold piece, which is made to last. The coin is a bright reddish-gold colour because of its unusual metallic composition. The portrait of Paul Kruger, who served as the first President of South Africa, is shown on the face of the coin. South Africa's state animal, the springbok, is shown on the back of the coin.

Krugerrands were initially produced as a 1-ounce coin that weighed 33.9 grams. As fractional coins, they came out in 1-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce sizes to make them easier to get and cheaper.

Influence of Krugerrand on the International Gold Market

When the Krugerrand was introduced in 1967, it changed the world's gold market. Gold coins with a one-ounce gold content and the status of legal currency in South Africa have established a new benchmark for bullion coins across the world. Following the Krugerrand's success, several governments produced gold bullion coins. The introduction of gold coins increased the level of competition and liquidity in the market for precious metals. Krugerrands are also valuable because:

• Krugerrands were first made in 1967, and only 40,000 were made, so these versions are very rare.

• In 2017, to mark the 50th anniversary, the South African Mint released Silver Krugerrand coins with both an Uncirculated and a Proof finish.

• The Krugerrand had a significant impact on the history of coins because it is the gold coin that is traded the most.

Heritage and the Krugerrand's Popularity

As an investment in gold , the Krugerrand continues to be a lighthouse. Popularity can be attributed to both its historical significance and its practical benefits. When there is a broad global market, buying and selling are simplified, which is something that investors want. At AU Bullion, you have the option of purchasing Krugerrands either in person or online.

Purchase and invest in Krugerrand

Bullion buyers still like Krugerrands as an investment because they are valuable and small. Investors use Krugerrands to hedge their portfolios against the United States dollar or to further diversify their portfolios. It is possible to diversify your holdings of precious metals using Krugerrands. Because of their widespread use and high liquidity, these currencies are appealing to both inexperienced and experienced investors alike. Because it is a non-renewable natural resource, gold has a history of return and has gone up in value. Krugerrands should be considered a long-term investment strategy.