The South African Krugerrand is the most common and widely recognised of all gold bullion coins throughout the world. Since its inception in 1967 many countries from all continents have followed its lead and minted their own gold bullion coins. Here we look at the history of the Krugerrand and how it has impacted on gold bullion coins worldwide.
Origins of the coin
The coin is named after and depicts the 5th President of the South African Republic Paul Kruger, who gained renown by leading the resistance against the British in the Second Boer War. The coin was used to promote South Africa’s gold and gold mines, with Kruger’s presence used to demonstrate its strength and independence. The Krugerrand gold bullion coins were initially intended to be used as currency, but it soon became the most frequently traded gold coin across the world and is seen as the first used for investment purposes. In 1980 the ability to invest in gold coins was opened up to lower scale investors in the form of smaller coins; with half ounce, quarter ounce and tenth ounce of gold.
Jumping on the bandwagon
The Western world’s stance against apartheid meant that it was actually illegal to import Krugerrand gold bullion coins – although it did still happen. Having witnessed the popularity of the coin and recognising a gap in the market, many countries sought to follow the lead of South Africa and begin minting their own gold bullion coins.
New options
Canada was the first country to follow suit and began producing Maple Leaf gold bullion coins in 1979. By 1986 Australia had released the Australian Nugget, USA the American Gold Eagle and the United Kingdom the Britannia coin. Whilst they have all seen relative success, none have been able to match the popularity of the Krugerrand; with over 46 million ounces of gold bullion coins being sold.
At UK Gold Bullion we offer a selection of the very finest gold bullion coins, including the famous Krugerrand. For more information on any of our gold products please call our helpful staff on 01923 856 729. Alternatively you can email us at sales@ukgoldbullion.co.uk for a prompt response.