The first minting of the Gold South African Krugerrand coin was on July 3, 1967. The rationale for its introduction was to aid in marketing the gold from South Africa. In other words, the Gold South African Krugerrand was a private gold ownership vehicle. However, South Africa’s apartheid policy led to the illegalization of the importation of the Krugerrand in numerous countries in the West during the seventies and eighties. This left Latin America, Thailand, Middle East, Taiwan, Hong Kong, and Turkey as the biggest markets until the abandonment of apartheid in 1991.
The name of the coin draws from Paul Kruger’s face effigy on the obverse of the coin. Paul was president of the then South African Republic. On the reverse of the coin is the springbok, which is a national symbol of South Africa. The coin’s design was by Otto Schultz while Coert Steynberg designed the image. The inscription, “South Africa” appears in both Afrikaans and English on the obverse while “Krugerrand” mint year and the gold content in Afrikaans and English.
The durability of the Gold South African Krugerrand coin was enhanced beyond gold’s by minting it with an alloy of copper and gold. Its thickness is 2.84 millimeters and its diameter is 32.77 millimeters. It weighs in at 33.93g and has a 22-karat purity of .9167. Hence, the Gold South African Krugerrand comprises 31.1035g of gold with the remaining percentage being the copper that gives it an orangish look. From 1980 September, Gold South African Krugerrand’s minter, the South African Mint Company, released the denominations of a quarter, half, and tenth. Respectively, they have diameters of 22.06, 27.07, and 16.55 millimeters, widths of 1.888, 2.215, and 1.35 millimeters, and gold content of 0.250, 0.500, and 0.250 respectively.
Investors and collectors do not pay VAT on purchases because the Gold South African Krugerrand is legal tender. However, the Capital Gains Tax is imposed on sales within the UK. This could be seen as a hindrance by some investors especially those in the UK market. All dealers intending to sell the Gold South African Krugerrand must complete a specific pre-application form.