History
The Kruggerand is by far the most famous gold ounce coin. The first Krugerrand was minted in 1967, and ever since, the South African coin has remained a favorite of investors.
South Africa’s iconic bullion coin is the cornerstone of private gold ownership and transformed the industry.
Krugerrand became so popular around the world that it inspired other nations to mint their own 1 ounce gold coins, such as the Canadian Gold Maple Leaf, Australian Nugget, Chinese Gold Panda, American Gold Eagle, and British Britannia coins.
One of the important assets of Krugerrands is their history and popularity. It is the most traded and collected bullion coin in the world. If you are interested in investing in gold, the South African Krugerrand is the right and safe way to go!
In general, gold coins have a common advantage over gold bars and jewelry. For starters, they are issued by governments, which makes them recognizable around the world. This means you can sell your 1 oz coins almost anywhere in the world without authenticity verification issues.
legal tender value
South African coins have been legal tender since they were minted. Krugerrands do not have any monetary face value, which means that their legal tender is valued at the market price of gold. Therefore, you are legally within your rights to exchange a Krugerrand coin for the equivalent cash value of 1 ounce of gold.
cost
Krugerrand has a slight advantage over the other 1 ounce bullion coins because they offer slightly lower prices than the American Gold Eagle and Canadian Gold Maple Leaf. 1 ounce bullion coins are generally the most profitable gold investment and the slightly lower prices give the Krugerrand an added advantage over other coins.
Sustainability
Krugerrand consists of a 22-carat alloy with more than 90% gold and small amounts of silver and copper. This mixture gives the Krugerrand its characteristic golden-orange glow and also makes it more durable because pure gold is quite soft and easily damaged.
The 22-carat Krugerrand coin has a stronger compound than other bullion coins and is not easily damaged.
6 reasons to own gold
A history of keeping its value
Gold is volatile, but the value of gold will never be zero. Unlike paper money, coins, or other assets, gold has held its value over the centuries. People view gold as an asset to keep in the family and pass down their wealth from one generation to the next.
US dollar weakness
When times are uncertain, people look for alternative options to invest. The US dollar is one of the most important reserve currencies in the world, but when the dollar weakens compared to other currencies, people tend to invest more in gold and that pushes up gold prices; a perfect example is the time period between 1998 and 2008, when the price almost tripled. Gold reached the $1,000 per ounce milestone in early 2008 and nearly doubled between 2008 and 2012.
Inflation
The simplest way to say it: when the cost of living increases, the price of gold tends to increase as well.
uncertainty in the world
When times in the financial/political sector are uncertain, the stock market is falling, businesses can’t get loans as easily as before, and trust in government is weakening, then the price of gold usually goes up. Because? New investors are getting in on gold price rallies as investors are confident that gold is a good investment.
Anonymity
Investors can buy and own physical gold privately and anonymously.
Other than that…
Gold is universal money, a tangible store of value and protection of wealth.
Physical gold cannot go bankrupt or bankrupt. Gold bars will never breach promises or obligations.
The bottom line
Although gold prices can fluctuate in the short term, it has always held its value in the long term.