A few fun interesting facts about krugers. Because 24K gold would be easy to bend and scratch, the Krugerrand is 22K- eleven parts gold to one part copper, mixed together. It is sought by numismatologists and everyday people like you and me looking to buy gold. Discover the people behind the coin, and what makes its appearance unique.

Fifty years ago South Africa need a way to turn it's vast deposits of gold into cash. In 1967 the South African mint's press first rolled out the 1 oz gold krugerrand.  It marketed as legal tender, which took advantage of a law that allowed Americans to own foreign currency (they couldn't own bullion). This allowed Americans to own krugerrands, but there were other complications we'll discuss shorty.

The kruger has become the defaut gold bullion coin for world investors. Krugerrand history includes many firsts- such as the fact that this coin is the first one to be traded on the weight of gold it contains, not on a value stamped on the face. If you look a United States penny, it is worth exactly one cent (unless it has a special value for a coin collector due to scarcity or quality). Krugerrands are traded differently based on the prevaliing gold price. The kruger doesn't have a rand value stamped on it- rather it is stamped with exactly how much pure gold is contained in the coin.

The humble krugerrand is at its heart gold bullion, which was once prohibited for citizens of the United States to own. When the Republic of South Africa made them legal tender, US citizens could now purchase the gold bullion coin as a foreign currency, rather than bullion. So krugerrand gold coin ownership was legal, but still prohibited by executive order, due to the continued practice of Apartheid, until this was changed in the mid nineties.

Let's talk about the coin itself. On the obverse side of the coin, there is Paul Kruger, President of the Transvaal. On the reverse of the coin, there is a springbuck antelope. If you have bought a one ounce gold krugerrand coin in the 1980s, you could sell that same coin for almost double- since gold prices have gone from $600 to almost $1000 in the last twenty five years. Gold prices will go up and down, and the kruger follows suit. Pay attention to the fluctuations of the spot gold price, and you can tell the best time to buy or sell.

A word of caution: in the 1980s a silver, so-called kruger, was stamped out by an unknown source. Although they have a springbuck antelope, the silver krugerrands lack the correct name of Paul Kruger, the name of the Republic of South Africa, and are of course constructed from silver. The South African Mint did not stamp out these coins, and the government did not authorize their release. Collectors are urged to refrain from buying these coins. The surprising success of the Krugerrand encouraged many other entries into the gold bullion market- the Chinese introduced their Panda, and the United States has the Gold Eagle.

The South African gold Krugerrand is one of the most valuable coins you can collect. But how can collectors accurately determine their Kruggerands’ value?   You don’t want to sell your gold Krugerrands for a price that is too low. But if you set your prices too high, you’ll turn away potential buyers. Fortunately, there are some simple steps you can take to accurately determine your Krugerrands’ value.

First, it’s important to understand why gold Krugerrands are prized so highly among coin collectors. The coins, first minted in 1967 in South Africa, are unique among bullion coins because they are minted with 22-karat gold. Because this type of gold is more durable, so are South African Krugerrands.  The first key to determining your Krugerrands’ value is to know exactly how the gold market is faring when you’re ready to sell your coins. That’s because the price of Krugerrands is tied directly to the current market price for gold.  By studying the gold market, you will easily recognize when someone offers you a good price. Just as importantly, you’ll recognize when someone offers you a bad price, too.  All you need to do is do an online search for the "spot price" of gold.

Once you have that, head on over to eBay and see what your size of Krugerrand is selling for.  You'll notice there's a difference in price.  This difference, or premium, comes from additional fees tacked on for shipping, handling and mintage. 

Armed with this knowledge, one of the best places to sell your gold Krugerrands is at a local, reputable dealer. Of course, “reputable” is the key word here. You want to work with a dealer who is fair and knowledgeable.  Check, then, with the Better Business Bureau before doing any business with a local dealer. You can also visit the online home of the U.S. Mint to find a list of well-regarded coin dealers in your area.

Once you do find a reputable coin dealer, bring in your Krugerrands and see what price the dealer quotes you. If you’re happy with the price, you can sell your Krugerrands with a clear conscience. If you’re not, it’s perfect OK to walk away without making a deal.

Online auction sites such as eBay are also good ways to help determine Krugerrand value. When you place your coins on eBay – with plenty of photos so that buyers know what they are bidding on – you’ll see fairly quickly just how much money shoppers are willing to spend.

Maybe the bids will come in higher than any offers you received from coin dealers. But maybe they’ll come in lower, too. If it’s the latter, you’ll know that your local dealer was offering a fair value for your Krugerrands.  Determining Krugerrand value doesn’t have to be a stressful process. In fact, it takes just a bit of research from coin collectors to set the right asking price for their gold Krugerrands.