The Krugerrand is a one-ounce bullion coin made of gold. This is the original and most-recognized bullion coin produced from a mine in South Africa — one of the world’s largest. While most of the Krugerrands are available as one-ounce coins, you can also get them in lower weights of half, quarter and even one-tenth of an ounce. Instead of being 24-carat gold, this bullion coin is a 22-carat one and exists as a copper alloy that enhances its durability.
This one-ounce gold bullion coin was first developed around six decades ago to make it easier for people to invest in the yellow metal. Many people today are confused when it comes to putting their money in a gold coin as small as just an ounce. Here’s a brief discussion from Atkinsons Coins and Bullions on the “3 L’s” that make investing in Krugerrands worthy.
On the outset, ever since its creation, the one-ounce gold coin has been looked at as a legal tender. This means that wherever you go, you can carry it without a worry. What’s more, should you choose to, you can even sell it anywhere in the world in return for direct cash.
Those who deal with gold often know that its shining appearance and other associations, including interests, usually lead to an added premium the metal above its original value. If the gold coins have historical value, expect the premium to be higher. But in the case of the Krugerrands, the premium is much lower than other gold coins.
Less security and storage troubles
As the Krugerrand is a small gold coin, it’s much easier to store and secure, especially when compared to huge-sized gold bars. You can even buy them in bulk and still avoid running the risk of becoming too obvious as a purchaser. Moreover, when you buy Krugerrands in bulk, you can enjoy lower rates as wholesale purchases reduce overall costs for the suppliers.
Check for the genuineness of the coin, the price of gold on the day of purchase, the dealer’s reputation, and the weight of the coin you’re purchasing. By doing this, you can be sure that you’re making a wise investment by buying Kruggerrands.