Gold Krugerrands
Gold Krugerrands are a 1 oz gold coin from South Africa. They were first introduced in 1967 as a means of marketing South African Gold. For Gold Coin Collectors, Gold Krugerrands are a must-have for any collection. Unlike gold coins of many other countries, gold Krugerrands do not have a face value on them as they were never intended to be used as currency.
What's unique about the Krugerrand is that is was the first gold bullion coin that could be sold for the market value of it's gold weight. The original Krugerrand contained exactly one ounce of 22 karat gold, meaning that if gold was selling for $1000 per ounce, then the Krugerrand would also have a value of $1000 plus a premium of between 1 and 5 percent. Currently they sell for about 1% above the price of gold.
When Krugerrands were first introduced they were given legal tender status which helped with their sale in the United States as it was illegal for US citizens to own gold bullion, however was not illegal to own foreign coins.
Krugerrands are not 100% gold, but have a tiny percentage of copper which gives them a slightly different color than 100% gold would. The copper aids in making the coin harder and more scratch resistant.
In the 1980's, Krugerrands were also made in other sizes of half, quarter and tenth ounce and silver Krugerrands are also produced.