The 1980 Krugerrand gold coin is a prized coin for many collectors. Considering that the coin was the first of its kind, it’s no surprise that it’s one of the world’s most widely recognized gold currencies.
But what’s the actual value of the gold Krugerrand coins? In this article, we’ll answer that question. We’ll also take a look at the history and features of the coin and other similar coins on the market. So let’s get started.
The Krugerrand coin doesn’t have any monetary value of its own. However, its value is based on the current value of gold in the market. This means that it’s legal to exchange it for a cash equivalent of 1 ounce of gold.
Currently, one gold Krugerrand is sold for around $1,820. However, the price may differ based on the variation of coins available on the market. For instance, the smallest Krugerrand coin with 916.7 purity goes for $240.10.
Moreover, the value of the Krugerrand is embedded in its popularity as the most coveted coin globally. Hence, it makes it a great asset to own, and you’re likely to have a high return if you decide to sell it.
In 1967, the South African Republic introduced the gold Krugerrand coin, the world’s first modern bullion coin. The name of the coin is a combination of the name of the South African President at the time, Paul Kruger, and the rand, the country’s currency.
The coin features a portrait of Paul Krugger on the front and the pronking springbok, South Africa’s national animal, on the reverse.
The Krugerrand was first issued as a means of selling gold in South Africa. Rand Refinery and the South African mint collaborated to create it. Only 50,000 Krugerrands were issued annually in the early years of manufacture.
On the other hand, the demand for the coin grew significantly, especially after the United States legalized gold ownership in 1974. As a result, approximately 3 million Krugerrands were in circulation worldwide by the end of 1974. In the 1980s, it was so popular that it accounted for about 90% of the global bullion coin market.
However, many Western countries banned the Krugerrand due to an institutionalized racial discrimination regime known as apartheid. For example, the United States President, Ronald Reagan, issued an order forbidding the importation of the coin in 1985.
However, after the end of the apartheid system, the ban was lifted by President George H.W. Bush in 1991.
The Krugerrand was originally created in 1 ounce of gold.
Over time, the manufacturing of coins has expanded. As a result, there are now different coins according to the gold weight. For example, there are versions with 5 ounces, 2 ounces, 1/2 an ounce, 1/4 an ounce, 1/10 an ounce, 1/20 an ounce, and 1/50 an ounce of gold. There’s also the huge 50 ounces gold coin.
The gold versions present in the Krugerrand coins are similar to the ones in the British gold coins. The coins are 22-carat gold alloyed with copper, giving them a lustrous orange shimmer compared to those alloyed with silver.
On top of that, they’re also tougher and more scratch and wear-resistant than solid gold coins.
Other Gold Coins
When the gold Krugerrand coin became illegal in the U.S because of South Africa’s apartheid in South Africa, other countries began to create coins. Below are some of those coins.
Gold Maple Leaf Coin
In 1979, the famed Gold Maple Leaf Coin of Canada gained popularity, particularly in the United States. Since the 19th century, gold deposits have been abundant in Canada. Investors eventually persuaded the Canadian government to produce gold bullion coins from the gold produced in the country.
Gold Maple Leaf coins were initially issued in 1-ounce variants. However, 14 and 1/10th ounce pieces were put into the market in future years. The coin featured an image of Queen Elizabeth created by Arnold Machin on the obverse and a single maple leaf on the reverse.
In 2007, the gold content/purity was raised to a .99999 fineness, making it the world’s finest coin. Furthermore, the currency recently got the world’s most advanced security measures. Currently, 1 ounce of the coin is going around for $2000 on the market.
American Eagle Gold Coins
The American Eagle coin debuted in the same year that the Canadian Gold Maple Leaf coin was the king of the market. Gold Eagles have a lot in common with the Krugerrand coin from South Africa.
Like the Krugerrand, it had to be minted from gold mines in America. Furthermore, the Gold Eagle, like the Krugerrand, was made of the same gold-copper alloy, and both coins have a purity level of .917.
Gold Eagles were first issued in 1 ounce, 12 ounces, 14 ounces, and 1/10th ounce sizes, with proof editions in each size.
Moreover, despite the popularity and rise in the value of the Gold Eagles, the Canadian Gold Maple Leaf quickly took over due to the growing demand for pure coins by Japanese and Hong Kong investors.
The obverse had the Saint-Gaudens double eagle design, while the reverse featured the Family of Eagles. $1,903.50 is the current asking price for a 1-ounce American Gold Eagle
After all these years, the gold Krugerrand coin remains one of the most valuable coins in the world. If you’re already an owner, study the market and trends before deciding to sell it. That way, you can get a good return.
Fortunately, there are a wide array of coins available at different price ranges you can purchase, depending on how much you’re willing to spend. So there are always possibilities for you, regardless of your budget.