Krugerrand Gold Coins

The gold krugerrand is from South Africa and was first minted in 1967. It gets its name from Paul Kruger who was the old South African president. The Gold Krugerrand is said to be the first gold coin that contained 1 ounce of gold in it. Gold Krugerrands were meant for the purpose of private ownership by the people. It was even given the status of legal tendership. Thus it enabled the citizens of the United States to buy Gold Krugerrands. This was a good thing for them because they were not allowed to buy bullion at that time. The Krugerrand is considered as legal currency but people hardly use it for that purpose.

This coin is also know as "Medal Coin" and is quite popular among the coin collectors. One side it has the picture of the old president and on the reverse of the gold krugerrand depicts a spring book antelope. This is one of the national symbols of the South Africa. On it the name "South Africa" and the gold content are shown in both English and Afrikaans languages. One Troy Oz of this coin is 32.6 mm in diameter, its thickness is 2.75 mm and the purity is .917. Besides this the coin is also available in half, one fourth and even one tenth Troy Oz.

This coin became so successful that other nations also started minting their own gold coins. Some such nations were Canadian Maple Leaf 1979 and the American Eagle in 1986. The minimum purchase of this coin is 5 ounces. As far as the price of this coin is concerned it depends on "spot price" and additional premium per every Gold Krugerrand. This spot price of gold changes every day and so is reported. One can find it in news papers, radio, TV and even online. The current rate is $939.33 weighing 33.930 grams. By buying gold krugerrand one is investing in gold. In case of an increase in the price of gold the value of the coins will also increase and it will result in gain for investors.

We live in uncertain times. The more prudent investors have recently been turning to one of the safer forms of investment - gold, and gold coins in particular. Gold prices hit $1000 on ounce earlier this year as investors plied their savings into stocks of the precious metal. According to the World Gold Council total investment in gold rose by 163% in the first quarter alone.

One of the most popular ways to invest in gold is to buy gold coins such as Krugerrands or Sovereigns. Items such as Krugerrand coins, which individually are 1oz of pure gold, are easily available from such diverse places as on-line auction site EBay.. Many industry commentators are openly suggesting that investors buy stocks of gold coins as safe, long term investments.

When comparing your options for buy gold coins there are several factors to consider depending on which coin you are buying.

The main factor is to compare the percentage over the standard market gold price for each type of coin.

Gold Sovereigns

Experts believe that Sovereigns are often worth paying the slight extra premium for. Their small size and historic significance make them very attractive to most investors.. Sovereigns are better known that some other types of gold coins, Krugerrand coins for example, and have the added advantage of being exempt from Capital Gains Tax if you live in the UK. It is suggested that if you can buy sovereigns within 2% of the price of Krugerrands coins that this makes them a better long term buy.

Krugerrand Coins

Krugerrand gold coins are the best known of all the modern gold bullion coins. These one ounce solid gold coins are more easily available in greater quantities and can generally be bought at lower prices than any other. In comparison to sovereigns, Krugerrand coins do not look as nice, nor are they of such historical significance, but as a solid investment they are still extremely popular. What they lack in looks, however, they make up for in high production quality and they are a cost effective way for small investors to buy gold.