When demand for gold bullion increased in the mid-1960s, there were few options available to the individual investor. The South African government saw an opportunity to serve this market and introduced Krugerrand in 1967. Demand for gold remained strong over the next decade and the Krugerrand enjoyed special status as the only readily available one-ounce gold coin. At the height of the gold market in 1979-1980, it was the best-selling gold investment coin in the world. As awareness of South Africa`s apartheid policies grew, interest in the Krugerrand waned; Especially since new competitors have entered the market. Finally, in 1985, the United States banned the import of Krugerrand. Many investors misunderstood this ban and thought Krugerrand was illegal to possess in the US (the import ban has been lifted, so it is now legal to import Krugerrand again). As a result, the premiums on Krugerrand fell below those of other competing investment coins. Krugerrand is still preferred by many people who were active buyers of gold in the 1970s because of their familiarity with the coin.

Since Krugerrand are still widely used, they are a good choice for buying investment coins. However, they cannot be included in precious metals IRAs. In the 1970s and 1980s, economic sanctions were imposed on South Africa for its apartheid policies. The purchase of Krugerrand at this time could be considered an endorsement of this practice, and so some Western countries like Britain made Krugerrand an illegal import during this period. Economic sanctions against South Africa for its apartheid policies turned Krugerrand into an illegal import into many Western countries in the 1970s and 1980s. The United States, which has always been the largest market for coins, banned imports in 1985; The previous year, more than $600 million had been marketed to Krugerrand in that country. [4] Most sanctions ended in 1991 after the South African government took steps to end its apartheid policy. [10] [11] [12] [13] If you have information about infringing goods illegally imported into the United States, CBP recommends that you file an electronic invoice. The electronic claim provides the public with the opportunity to anonymously report to CBP alleged violations of trade laws or regulations related to the importation of goods into the United States. The coins are legal tender in South Africa, although Krugerrands has never received a value in rand (ZAR). Krugerrand are designed to derive their value solely from the price of gold at the time of trading. When the price of gold changes, the price of Krugerrand also changes.

The Johannesburg Stock Exchange (JSE) trades Krugerrand on a well-regulated secondary market like any listed stock exchange instrument, with quoted prices based on the weight of the coins. New Krugerrand are issued by the South African Reserve Bank (SARB), where they can be repurchased. Due to its legal tender status in South Africa, the Krugerrand was minted to carry more durable than the 24k gold coins used for decorative medals. Krugerrand is composed of 22 carats or 91.67%, gold, with 8.33% copper alloy. 2017 was the 50th year of issue (1967-2017) and to mark the anniversary, the South African Mint produced “Premium Uncirculated” versions in gold (.916 or 22 carats) and, for the first time, platinum (.999 fine) and silver (.999 fine). The spending limit for these platinum, gold and silver commemorative coins was 2,017 for platinum, 5,000 for gold and 1,000,000 for silver. Commemorative editions feature a secret “50” seal above the springbok design on the back for the platinum and silver editions and to the right of the springbok design for the gold editions. In addition to the “Premium Uncirculated” edition, 15,000 Krugerrand “Proof” Krugerrand silver were also issued. [14] Krugerrand can be purchased from coin dealers in person or online. All Krugerrand coins, including those minted during the period when international sanctions were imposed on South Africa, are now legal to own, buy or sell. Although gold Krugerrand coins have no face value, they are legal tender in South Africa under the South African Reserve Bank Act 1989 (SARBA). [6] The obverse of a Krugerrand coin bears the image of Paul Kruger, President of the Republic of South Africa from 1883 to 1900.