Krugerrand

The Krugerrand is a South African coin, first minted on 3 July 1967 to help market South African gold and produced by Rand Refinery and the South African Mint. By 1980, the Krugerrand accounted for 90% of the global gold coin market. The name is a compound of Paul Kruger, the first South African president of the Transvaal, depicted on the obverse, and rand, the South African unit of currency. During the 1970s and 1980s, some western countries forbade import of the Krugerrand because of its association with the apartheid government of South Africa, most notably the United States, which was the coin's largest market in 1985.

Production levels of Krugerrands have significantly varied since its introduction. From 1967 to 1969, around 40,000 coins were minted each year. In 1970, the number rose to over 200,000 coins. More than one million coins were produced in 1974, and in 1978 a total of six million were produced. The production dropped to 23,277 coins in 1998 and then increased again, although not reaching previous levels.

Although Krugerrand coins have no face value, they are considered legal tender in South Africa by the South African Reserve Bank Act (SARBA) of 1989.

In 2017, the Rand Refinery began minting silver versions, which have the same overall design as the gold coin.

Kruger was affectionately known as 'Oom Paul'(uncle Paul), one of the highest designations anyone can be given in South Africa. The reverse side of the Krugerrand is a Springbok, South Africa's national animal. By 1980 the krugerrand accounted for more than 90% of the global coin market and was the number one choice for investors buying gold. During the economic sanctions against South Africa in the 1980s, krugerrand sales dropped, but more than 20 million coins were imported into the USA alone.

History
The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. It was minted in a copper-gold alloy more durable than pure gold. Economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. Hence the largest markets were the Middle East, Iran, Turkey, Thailand, Hong Kong, Taiwan and Latin America. These sanctions ended when South Africa Apartheid Government was forced to abandoned apartheid policy by the Black Majority in 1991.

By 1980 the Krugerrand accounted for 90% of the global gold coin market. That year South Africa introduced three smaller coins with a half troy ounce, quarter ounce, and tenth ounce of gold.

Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.

Variations and imitations
During the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide. Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1987, the Chinese Gold Panda in 1982, the American Gold Eagle in 1986, and the British Britannia coin in 1987.

Private mints have also attempted minting gold and silver bullion rounds (the term coin denotes legal currency) in the style of the Krugerrand. The rounds often depict Paul Kruger and a springbok antelope, some even blatantly copying the design of the Krugerrands themselves, though the inscriptions are altered. These bullion rounds are not offered by the South African Mint or the Government of South Africa, and are therefore not official, have no legal tender value, and cannot technically be considered coins.

Properties
The Krugerrand is 32.77 mm in diameter and 2.84 mm thick. The Krugerrand's actual weight is 1+1/11 ozt. It is minted from gold alloy that is 91.67% pure (22 karats), so the coin contains 1 ozt of gold. The remaining 8.33% of the coin's weight of 1/11 ozt is copper (an alloy known historically as crown gold which has long been used for British gold sovereigns), which gives the Krugerrand a more orange appearance than silver-alloyed gold coins. Copper alloy coins are harder and more durable, so they can resist scratches and dents.

The coin is so named because the obverse, designed by Otto Schultz, bears the face of Boer statesman Paul Kruger, four-term president of the old South African Republic. The reverse depicts a springbok, the national animal of South Africa. The image was designed by Coert Steynberg, and was previously used on the reverse of the earlier South African five shilling coin. The name "South Africa" and the gold content are inscribed in both Afrikaans and English (as can be seen on the pictures of the coin).

Since September 1980, Krugerrands have also become available in three additional sizes containing 1/2 ozt, 1/4 ozt and 1/10 ozt of gold. The word "Krugerrand" is a registered trademark owned by Rand Refinery Limited, of Germiston.

Proof Krugerrands
The South African Mint Company produces limited edition proof Krugerrands intended to be collectors' items rather than bullion investments. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the edge of the coin. Proof coins have 220 edge serrations, while bullion coins have 160.

50th Anniversary Krugerrands
2017 marked the 50th year of issuance (1967–2017) and to commemorate the anniversary, the South African Mint produced "Premium Uncirculated" versions in gold (.916 or 22 carat) and for the first time also in platinum (.999 fine) and silver (.999 fine). The issue limit for these commemorative platinum, gold and silver coins was 2,017 for platinum, 5,000 for gold and 1,000,000 for silver. The commemorative issues are distinguished by a '50' privy seal mark above the springbok design on the reverse for the platinum and silver issues and to the right of the sprinbok design on the gold issues. In addition to the "Premium Uncirculated" issue, 15,000 silver "Proof" krugerrands were also issued as well as "Proof" krugerrands in gold and platinum.

Export Control
The South African Reserve Bank restricts the exportation of Krugerrands by a South African resident to a non-resident to a maximum of R30,000 (about US$2,100 or 1,870 Euro as of June 2018). Visitors to South Africa can export up to 15 coins by declaring the items to the South African Revenue Service.

Charitable donations
Depositing Krugerrands in Salvation Army donation kettles has become an annual tradition of one or more anonymous benefactors in several cities around the United States, including Daphne, AL, Atlanta, GA, Denver, CO, Seattle, WA, Spokane, WA, Fargo, ND, Bay City, MI, St. Clair Shores, MI, Kokomo, IN, Tulsa, OK, Tallahassee, FL and Stuart, FL.