What makes the South African Krugerand so popular?

History

The Kruggerand is by far the most famous ounce of gold coin. The first Krugerrand was minted in 1967, and since then the South African coin has remained a favorite choice for investors.

Iconic ingots in South Africa are the cornerstone of private ownership of gold and transformed industry.

The Krugerand became so popular around the world that it inspired other countries to coin their own ounce gold coins, such as the Canadian Gold Maple Leaf, the Australian Nugget, the Chinese Golden Panda, the American Golden Eagle and the British Coin Britain.

One of the important assets of Krugerrands is its history and popularity. It is the most traded and collected bullion in the world. If you are interested in investing in gold, then the South African Krugerand is the safest and right way!

In general, gold coins have a general advantage over ingots and jewelry. For starters, they are issued by governments, making them known around the world. This means you can sell your 1 ounce coins almost anywhere in the world without any authentication issues.

Legitimate payment account

South African coins have been legal tender since their inception. The Krugerrands have no cash denomination, which means that their legal tender is valued at the market price of gold. Therefore, you are legally entitled to exchange a Krugerand coin for a cash equivalent to 1 ounce of gold.

Price

Krugerand has a slight advantage over other 1-ounce ingots because they provide slightly lower prices than the American Golden Eagle and the Canadian Golden Maple Leaf. 1-ounce bullion coins are usually the most cost-effective investment in gold, and slightly lower prices give Krugerrand an added advantage over other coins.

Durability

Krugerrand consists of a 22-carat alloy with more than 90% gold and a small amount of silver and copper. This blend gives Krugerrand a signature golden-orange glow and also makes it more durable because pure gold is quite soft and easily damaged.

The Krugeranda 22-carat coin has a stronger connection than other ingots and is easily damaged.

6 reasons why you need to own gold

A story of preserving its value

Gold is volatile, but the value of gold will never be zero. Unlike paper currency, coins and other assets, gold has retained its value for centuries. People view gold as an asset that needs to be kept in the family and passed on from one generation to the next.

The weakness of the US dollar

When times are uncertain, people look for alternative investment options. The US dollar is one of the world’s most important reserve currencies, but when the dollar weakens against other currencies, people tend to invest more in gold, and this raises gold prices – a great example – between 1998-2008. When the cost is almost three times. In early 2008, gold peaked at $ 1,000 an ounce and nearly doubled between 2008 and 2012.

Inflation

The easiest way to say: if the cost of living increases, then so do gold prices.

Uncertainty in the world

If times in the financial and political sector are uncertain, the stock market falls, businesses cannot get loans as easily as before, and confidence in the government weakens – then usually the price of gold rises. Why? New investors are entering rising gold prices as investors see gold as a good investment.

Anonymity

Investors can buy and own physical gold privately and anonymously.

In addition, …

Gold is universal money, a tangible reserve of value and protection of wealth.

Physical gold cannot go bankrupt or spoil. Gold bars will never fulfill promises and commitments.

Bottom line

Even though gold prices may vary in the short term, it has always retained its value over time.