Krugerrand gold coins are the oldest of all of the present day gold bullion coins. Launched in 1967 by the South African government, their level of popularity grew to be so great that it resulted in the mintage of other well-known gold bullion coins including the Canadian Gold Maple Leaf and the American Gold Eagle.
I covered the Krugerrand’s basic history and information in my previous article entitled, “Krugerrand Gold Coins – The 1st Contemporary Gold Bullion Coins”. I also covered some interesting facts and trivia about the coin in a follow-up article, entitled, “Krugerrand Gold Coins – 10 Fun Nuggets Of Information”. If you’re interested in reading them, just do a search on EzineArticles or Google by title!
In this article, I’d like to talk about the advantages of buying Krugerrand gold coins versus other modern gold bullion coins.
1. High Durability
The 22k Krugerrand contains a gold alloy combination of 91.67{a61c4e1b991c7f3a090c87cb66410712d4121fe18ab0f6421d85cbe80290558f} gold and 8.33{a61c4e1b991c7f3a090c87cb66410712d4121fe18ab0f6421d85cbe80290558f} copper. The inclusion of copper makes them more durable than other 24k modern gold bullion coins. The coin is highly resistant to scratches, dents, and nicks!
2. Low Price
The Krugerrand generally has the lowest premium over the spot price of gold. At the time this article was written, the coin was trading at $9.00 over spot compared with $16.00 for the Canadian gold maple leaf, $34.00 over spot for the American Gold Eagle, and $50.00 over spot for the gold Buffalo!
3. Instant Liquidity
Because the South African Krugerrand is so well-known, it is super easy to buy and sell them both locally and internationally.
4. Easy To Store
Like most gold bullion coins, the compact size of the Krugerrand makes it convenient to store and transport. Most Krugerrands are packed in three inch plastic tubes that fit nicely inside home safes or safety deposit boxes in banks.
5. Better Than Bars
While it’s true that the premium on gold bars is generally lower than that of gold coins, unlike Krugerrand gold coins, it’s a pain to store and transport them. Plus, most bars must be assayed when sold, an additional cost that you don’t have to worry about when selling the Krugerrand!
Whether you are just starting to purchase gold bullion coins or are looking to add to your collection, I think you’ll agree that the gold Krugerrand is not only a great deal but a high-quality bullion coin that should be the cornerstone of any investor’s portfolio.
