|
|
The South African Chamber of Mines had an inspired idea to help market South African gold. It was to issue a one ounce bullion coin, to be sold at a very low premium over the intrinsic gold value.
Back in 1967
Krugerrands were first minted and issued in 1967, and have been produced every year since. They have legal tender status in South Africa, which allowed them to be imported into many, but not all, countries without import taxes, duty or VAT.
The Krugerrand Family
Originally only one size was issued, which contained one full troy ounce (31.1035 grams) of fine gold. This was originally known as a Krugerrand, or Kruger, for short. From 1980, three other sizes were introduced, namely a half, quarter, and tenth ounce size. Because of these, the original Krugerrand is sometimes referred to as a "full" or "one ounce" Kruger or Krugerrand, although within the trade, the word Kruger or Krugerrand is understood to be the full sized original one ounce version. The Krugerrand gets its name from the fact that the obverse shows the face of Paul Kruger, a prominent Boer resistance leader against the British and eventually the fifth, and last president of the old South African Republic holding that office for four terms. The reverse depicts a springbok antelope, one of the national symbols of South Africa that was designed by Coert Steynberg and used on the reverse of the earlier 5 shilling South African coinage for King George VI and Queen Elizabeth II. The name "South Africa" and the gold content are inscribed in both Afrikaans and English.
The word Krugerrand is a registered trade mark owned by Rand Refinery Limited, a South African corporation of Germiston, South Africa.
The success of the Krugerrand led to many other gold-producing nations minting their own bullion coins, including the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1981, and the American Gold Eagle in 1986.
British Investors Missed Out
At the time of the kruger's introduction, it was not legally possible for British residents to acquire bullion gold coins, so that the Krugerrand was almost unknown in Britain until 1971.
Low Premium Over Gold Content
According to the publicity at the time, the Kruger was to be made available to world bullion dealers at a 3% premium over the current gold fix, so that after distribution costs, the coins would be available to investors in quantity at about 4% to 5% over intrinsic gold values, and possibly 10% premium for single pieces.
Higher Premium on Smaller Sizes
The fractional sizes were issued at higher premiums to bullion dealers of 5%, 7%, and 9% respectively. The fractional coins have never been as popular as the full one ounce coins, usually only being purchased as singles, so that in practice, it would usually cost 10% to 15% premium for the half and quarter ounce, and from 20% to 50% premium for the tenth ounce, most of which seem to have been used in jewellery. Most bullion houses do not want the bother of handling small quantities of low value coins.
Not a Pretty Sight
Krugers were never intended to be an aesthetically pleasing coin, just a lump of gold with a known weight and value. They certainly cannot be called pretty.
Collectors seeking aesthetically attractive coins would be better looking at British gold sovereigns, or some of the newer bullion coins.
Silver Krugerrand
During the 1980s, a silver Krugerrand was struck; however, this was struck privately. The most common dates that have been seen are the 1982 and 1983 issues, but other dates have been reported. The 1982 issue commemorates the 15th anniversary of the gold Krugerrand, and the 1983 issue commemorates the 16th anniversary of the gold Krugerrand. It is interesting to note that there is no reference to South Africa anywhere on these coins. Like the gold Krugerrand, the silver Krugerrand is traded based on its bullion value. The silver Krugerrand is arranged in coinage alignment, as opposed to the medallic alignment of the gold Krugerrand. Like the gold Krugerrand, the silver Krugerrand also has a milled edge.
As the word krugerrand is a trademark, it is not correct or legally sound to refer to these silver discs as "silver krugerrands", they are medallions which merely purport to be silver krugerrands, in breach of the intellectual property rights of the trademark owner. It may be noted that there is no indication on these medallions of who issued them.
The obverse has the portrait of President Kruger in high relief. His name is inscribed as 'STEFANS JOHANNES KRUGER'.
The reverse depicts Coert Steynberg's pronking springbok design, just like that on the gold Krugerrand. Above the springbok is the inscription 'ONE TROY OZ .999 FINE SILVER' in three lines. Around the design is the inscription 'KRUGERRAND COMMEMORATIVE' and the double dates '1967-1982', '1967-1983' and so on.
|
|