Krugerrand gold coins are the oldest of all gold bullion coins today. Issued in 1967 by the South African government, their level of popularity became so great that it resulted in the minting of other popular gold bullion coins, including the Canadian gold maple leaf and the American golden eagle.
I covered the history and basic information of Krugerrand in my previous article entitled, “Krugerrand Gold Coins – The First Coins with Gold or Silver Bullion”. I also covered some interesting facts and little things about currency in a subsequent article, entitled, “Krugerrand Gold Coins – 10 Fun Pieces of Information.” If you are interested in reading them, just do a search on EzineArticles or Google by title!
In this article, I would like to talk about the advantages of buying Krugerrand gold coins over other modern bullion coins.
1. High durability
The 22k Krugerrand contains a gold alloy combination of 91.67% gold and 8.33% copper. The inclusion of copper makes them more durable than other modern 24k gold coins. The coin is very resistant to scratches, abrasions and ticks!
2. Low price
Krugerrand generally has the lowest price above the spot price of gold. At the time of this writing, the coin was trading at $ 9.00 locally compared to $ 16.00 for the Canadian gold maple leaf, $ 34.00 above the spot for the American Golden Eagle and $ 50.00 above the spot for the Buffalo golden!
3. Immediate liquidity
Because the South African Krugerrand is very popular, it is very easy to buy and sell them domestically and internationally.
4. Easy to maintain
Like most bullion coins, the Krugerrand compact size makes it convenient to store and transport. Most Krugerrands are packaged in three-inch plastic tubes that fit snugly inside home safes or bank deposit boxes.
5. Better than rods
While it is true that the premium of gold bars is usually lower than that of gold coins, unlike Krugerrand gold coins, it is a pain to store and transport them. Plus, most bars need to be valued when sold, an additional cost you do not have to worry about when selling Krugerrand!
Whether you have just started buying bullion coins or are looking to add to your collection, I think you will agree that Krugerrand gold is not just a big deal but a high quality bullion coin that should be the foundation of any portfolio investors