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Krugerrand Value

Krugerrand coins are basically investment coins that were introduced with intention to promote South African gold. Krugerrand value is therefore closely linked to the value of gold that fluctuates frequently and has been growing for the last decade. Krugerrand value reflects the gold price that is increased for a low premium over the value of contained gold. It can be easily determined at any time, since the gold price is quoted internationally in troy ounces.

Premiums on Krugerrand coins:

 

Premiums [%]

*

Premiums [%]

**

 One Ounce

3

4.75 – 7

Half Ounce

5

7 – 12

Quarter Ounce

7

9 – 15

Tenth Ounce

9

12- 20

* Premiums for bullion Krugerrand coins. Source: SA Mint. ** Some coin dealers offer different premiums that depend on various factors. Premiums in the second column depend on quantity of Krugerrand coins bought (1-100 coins) and other. Source: Popular UK Coin Dealer

Besides that Krugerrand value depends on other factors such as size of Krugerrand coins, quantity bought, rarity and availability of  coins, collector value. Factors that influence Krugerrand value:                                      

  • Value of Gold: Fluctuates frequenty and has been growing for the last decade – the same goes for the Krugerrand value.
  • Size of Krugerrand Coins: Full one ounce Krugerrand coins have lower premiums than fractional coins (1/2 oz, 1/4 oz and 1/10 oz).
  • Quantity: Single coin orders come with higher premiums than bigger orders, since coin dealers usually rather deal with higher quantities.
  • Bullion or Proof Krugerrand Coins: Proof Krugerrand coins are made in limited quantities, with more details than bullion coins, so they have higher premiums. Mark-ups on proof Krugerrands can exceed 40% above the gold price.
  • Rarity and Availability: In some years Krugerrand coins were struck with lower mintages so they are more difficult to obrain, which influences their value.
  • Demand: If certain Krugerrand coins are very desirable, their prices can go up. This is very well visible on auction websites, where higher demand generates higher Krugerrand value.
  • Condition: Condition of coins is usually important when it comes to collectible coins. Therefore it is mostly important for proof Krugerrand coins, designed for collectors. Even so, collectors are also showing interest in certain issues of bullion Krugerrands, so condition of coins is not a negliglible factor in either case.
  • Taxes: Krugerrand coins can have tax exemptions – for example they can be imported in some (but not all) countries without import taxes, duty or VAT.

Some factors that influence Krugerrand value, fluctuate more than others. Value of gold for example, depends on factors such as demand, economical and political movements, that can change very quickly and unpredictably. On the other hand, size of Kruggerand coins is predictable factor that often comes with fixed premium.

Before you buy Krugerrands you should consider all the factors mentioned above and choose the righ time to catch the best offer you can get.

10- Year Chart of Krugerrand Value:10 Year Close

Source: Monex.com

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One Response to “Krugerrand Value”

  1. 1
    Keith S Says:

    I did not know that the premium value for proof Krugerrand coins could run so high. I’ve always liked the Krugerrand as an investment and wondered about the mark up above the basic gold price. It always pays to keep researching to find out as much about an investment as possible.

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