Coin Review: South African Krugerrand
The South African Krugerrand coin is one of the most widely recognised, and traded, gold bullion coins in the world. First minted in 1967 by the South African Mint and the Rand Refinery, the coin was introduced to promote the nation’s vast gold reserves. With a rich history and an enduring design, the Krugerrand stands as a symbol of South Africa’s gold mining heritage and it is a testament to the enduring value of precious metals. The name Krugerrand is a portmanteau, with the word combining the last name of former President, Paul Kruger, and the Rand, which is the basic unit currency in South Africa.
Paul Kruger was a leader of the Boers, who were descendants of Dutch settlers that had migrated to South Africa in the 17th century. Kruger, who was President of the South African Republic from 1883 to 1900, was an influential figure in seeking to maintain the nation’s independence from British colonial expansion.
In the late 19th century, significant gold deposits were discovered in the Witwatersrand Basin, which was a region within the South African Republic. This discovery led to a gold rush within the state, where miners flocked the area in search of the metal. The influx of wealth in the nation due to the boom within the gold mining industry transformed the economy.
The immense wealth that was being generated from the Witwatersrand Basin created interest from foreign powers, particularly the British Empire. The success of the region led to the British attempting to take control of the whole region and the valuable resources that were there. In 1895, an unsuccessful raid against the South African Republic was carried out by a British colonial administrator. This was known as the Jameson Raid, and was the British Empire’s first attempt in gaining control of the region. This led to the outbreak of the Second Boer War from 1899-1902, a conflict between the British Empire and the two Boer Republics (which included the South African Republic), which ultimately ended in the success of the British forces. The British Empire eventually completed a takeover of the region.
Kruger became an internationally recognised figure during the Second Boer War as a leader who stood up and fought for his country against the British Empire. Despite his political fall, Kruger remains an iconic figure in Afrikaner history and culture.
Background of the Coin:
The Krugerrand boasts a design that is instantaneously recognisable. The obverse of the coin features a depiction of former President Paul Kruger flanked by the words ‘SUID-AFRIKA’ and ‘South Africa’. The image is a tribute to a leader who witnessed the incredible economic success of the South African mining industry.
The reverse features the Springbok, a native species of South Africa. The words ‘1oz Fine Gold’ are seen on the reverse which is an indication of the size and purity of the coin. The image of the Springbok represents pride and identity, and it is a national emblem of South Africa.
The Krugerrand is crafted from 22-karat gold and employs a mix of gold and copper. This alloy enhances the coin’s durability and contributes to the distinctive colour of the coin. The coin strikes a balance of purity and resilience making it one of the most sought after and traded coins around the world.
The Krugerrand as an Investment:
The Krugerrand can be a reliable long-term investment for precious metal enthusiasts. Krugerrands are available in multiple sizes, namely: 1/10 of an ounce, ¼ of an ounce, ½ of an ounce, and the full ounce coin. It is an ideal investment for investors who wish to start out in gold, hedge portfolios, or further diversify their investments. The Krugerrand can also be bought in silver as a full ounce coin.
If you would like to find out more about this particular coin, or other coins that Merrion Gold has to offer, then contact our trading team directly, either by phone: 01 254 7901 or by email: [email protected].
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