Editing Krugerrand

{{Short description|South African gold coin}}
{{Use dmy dates|date=April 2018}}
{{Infobox Coin
| Country          = South Africa
| Denomination     = Krugerrand
| Value            = 1 troy oz. fine gold
| Mass             = 33.93
| Mass_troy_oz     = 1.09
| Diameter         = 32.77
| Diameter_inch    = 1.28
| Thickness        = 2.84
| Thickness_inch   = 0.11
| Composition      = Gold (91.67%&nbsp;Au, 8.33%&nbsp;Cu)
| Years of Minting = 1967–present
| Obverse          = File:1 oz Krugerrand 2017 Bildseite.png
| Reverse          = File:1 oz Krugerrand 2017 Wertseite.png
| Obverse Design   = 1892 by Otto Schultz – Profile of [[Paul Kruger]] with "SUID‑AFRIKA · SOUTH AFRICA" in the legend
| Reverse Design   = 1947 by [[Coert Steynberg]] – A [[Stotting|pronking]] [[springbok]] [[antelope]] with the mint date in the field. The legend is inscribed with "KRUGERRAND" and the gold weight.
}}

The '''Krugerrand''' ({{IPAc-en|ˈ|k|r|uː|ɡ|ə|r|æ|n|d}};<ref>{{cite web|title=Krugerrand - definition|url=http://dictionary.reference.com/browse/krugerrand|publisher=Dictionary.com, LLC|access-date=11 August 2012}}</ref> {{IPA|af|ˈkry.ərˌrant|lang}}) is a [[South Africa|South African]] coin, first minted on 3 July 1967 to help market South African gold and produced by [[Rand Refinery]] and the [[South African Mint]].<ref>{{cite web |title=Products |url=http://www.randrefinery.com/products/ |website=Rand Refinery |access-date=19 April 2019 |quote=produced by Rand Refinery and the SA Mint |archive-date=29 May 2020 |archive-url=https://web.archive.org/web/20200529000225/http://www.randrefinery.com/products/ |url-status=dead }}</ref><ref>{{cite web |title=Bullion |url=http://www.samint.co.za/collectable-coins/bullion/ |website=The South African Mint Company |access-date=19 April 2019 |quote=The South African Mint Company manufactures Proof Krugerrands, and jointly manufactures the Bullion Krugerrand with Rand Refinery.}}</ref> The name is a compound of ''[[Paul Kruger]]'', the former President of the [[South African Republic]] (depicted on the [[obverse]]), and ''[[South African rand|rand]]'', the South African unit of currency. On the reverse side of the Krugerrand is a [[Stotting|pronking]] [[springbok]], South Africa's national animal.

By 1980, the Krugerrand accounted for more than 90% of the global gold coin market and was the number one choice for investors buying gold. However, during the 1980s and 1990s, Krugerrands fell out of favor as some Western countries forbade import of the Krugerrand because of its association with the [[apartheid]] government of South Africa.<ref name=":3">Bob Secter (02 Oct 1985) [https://www.latimes.com/archives/la-xpm-1985-10-02-mn-16058-story.html Reagan Bans Imports of S. Africa Krugerrand], The Los Angeles Times, accessed 28 June 2018</ref><ref>{{Cite web|title=KRUGERRAND LUSTER DIM FOR LOCAL COLLECTORS|url=https://www.orlandosentinel.com/news/os-xpm-1985-09-10-0330000236-story.html|last=Staff|first=Robin Foster of The Sentinel|website=OrlandoSentinel.com|date=10 September 1985 |language=en-US|access-date=2020-05-01}}</ref>

Although gold Krugerrand coins have no face value, they are considered [[legal tender]] in South Africa by the South African Reserve Bank Act (SARBA) of 1989.<ref>17 (2) (a) "[...] ''the value of each gold coin so tendered shall be equal to the net amount at which the bank is prepared to purchase that gold coin on the day of such tender thereof'' [...]" [https://www.resbank.co.za/AboutUs/Legislation/Pages/default.aspx], South African Reserve Bank Act, 1989</ref>

In 2017, the Rand Refinery began minting silver versions with the same overall design as the gold coin.<ref>{{cite web |title=The Silver Krugerrand has arrived |url=http://www.lbma.org.uk/assets/Alchemist/Alchemist_90/Alch90Collocott.pdf |website=Alchemist Issue 90 |publisher=[[London Bullion Market Association]] |access-date=24 August 2019}}</ref>

==History==
[[File:2022 South Africa 1 oz Silver Krugerrand Obverse.jpg|thumb|2022 South Africa 1 oz silver Krugerrand obverse]]
The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. It was minted in a [[crown gold|copper-gold alloy]] more durable than pure gold. By 1980, the Krugerrand accounted for 90% of the global gold coin market.<ref>{{cite news | title = Crazy as a Gold Bug | author = Tom Bethell | work = New York | date = 4 February 1980 | volume = 13 | issue = 5 | page = 34 | publisher = New York Media | url = https://books.google.com/books?id=6OUCAAAAMBAJ&pg=PA34 }}</ref> That year, South Africa introduced three smaller coins containing {{convert|1/2|,|1/4|, and|1/10|ozt|g|lk=on}} of gold.<ref>{{cite web |url = http://www.samint.co.za/index.php?option=com_content&view=article&id=111&Itemid=122 |title = 2010 Krugerrand Series |year = 2010 |work = www.samint.co.za |publisher = The South African Mint Company |location = South Africa |access-date =30 July 2011 }}</ref>

Economic sanctions against South Africa for its policy of [[apartheid]] made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s, with the [[United States]],  which had historically been the largest market for the coin, banning imports in 1985: the previous year, over [[United States dollar|US$]]600 million of Krugerrands had been marketed in the country.<ref name=":3" />

Most of these sanctions were removed in 1991 after the South African government took steps to end its apartheid policies.<ref>{{Cite book | title = Yearbook of the United Nations | edition = Volume 45 | year = 1991 | publisher = United Nations | pages = 114 |oclc = 1768016 }}</ref><ref>{{Google books|BTdmYFgvyi0C|Yearbook of the United Nations, Volume 45|page=114}}</ref><ref>{{cite web |url = http://www.morganlewis.com/pubs/374AF2F4-613C-4CCF-9FCB1D5813BBDD0D_Publication.pdf |title = Most South African Sanctions Lifted: ML&B White Paper - Morgan Lewis |year = 1991 |work = www.morganlewis.com |publisher = Morgan, Lewis & Bockius LLP |location = Philadelphia, PA |page = Page 2 |access-date = 30 July 2011 |archive-url = https://web.archive.org/web/20110929013616/http://www.morganlewis.com/pubs/374AF2F4-613C-4CCF-9FCB1D5813BBDD0D_Publication.pdf |archive-date = 29 September 2011 |url-status = dead }}</ref><ref>{{Cite news|last=Friedman|first=Thomas L.|date=1991-07-11|title=Bush Lifts a Ban on Economic Ties to South Africa|language=en-US|work=The New York Times|url=https://www.nytimes.com/1991/07/11/world/bush-lifts-a-ban-on-economic-ties-to-south-africa.html|access-date=2020-05-01|issn=0362-4331}}</ref> The South African government still found creative ways to circumvent the sanctions.

Over 50 million ounces of gold Krugerrand coins have been sold since production started in 1967.<ref name=":0">{{Cite web|url=http://www.silverseek.com/commentary/global-interest-silver-investment-expands-south-africa-adds-new-silver-krugerrand-16066|title=Global Interest In Silver Investment Expands As South Africa Adds New Silver Krugerrand|website=SilverSeek.com|access-date=12 November 2016}}</ref>

==Variations and imitations==

During the bull market in gold of the 1970s, the gold Krugerrand quickly became the primary choice for gold investors worldwide. Between 1974 and 1985, it is estimated that 22 million gold Krugerrand coins were imported into the United States alone. This huge success of the Krugerrand encouraged other gold-producing countries to mint and issue gold bullion coins of their own, including the [[Canadian Gold Maple Leaf]] in 1979,<ref name=":1">{{Cite news|title=Swiss Gold Bug Cleans Out S Africa Krugerrand Coin Maker: COMMODITIES|date=28 August 2008|work=Evening Standard|page=33}}</ref> the [[Australian Nugget]] in 1987,<ref name=":1" /><ref>{{Cite news|title=Australian Coins Offer 'nuggets' to Gold Buyers: FIVE STAR SPORTS FINAL Edition]|last=Rochette|first=Ed|date=31 January 1988|work=Chicago Sun-Times|page=34}}</ref> the [[Chinese Gold Panda]] in 1982,<ref name=":2">{{Cite news|title=U.S. GOING GOLD WITH EAGLE COIN: [SPORTS FINAL, C EDITION]|last=Leckey|first=Andrew|date=12 September 1986|work=Chicago Tribune|page=1}}</ref><ref>{{Cite news|title=Dealer Asks for U.S. Ban on Panda Coins: [FINAL EDITION, C]|last=Boye|first=Roger|date=13 August 1989|work=Chicago Tribune|page=11}}</ref> the [[American Gold Eagle]] in 1986,<ref name=":1" /><ref name=":2" /> and the British [[Britannia coin]] in 1987.<ref name=":1" />

==Properties==

The coin is so named because the obverse, designed by Otto Schultz,<ref name="Association1997">{{cite book|author=American Numismatic Association|title=The Numismatist|url=https://books.google.com/books?id=RWAaAAAAYAAJ&q=otto+schultz+krugerrand|access-date=30 November 2011|volume=110|year=1997|publisher=American Numismatic Association|page=765}}</ref> bears the face of [[Boer]] statesman [[Paul Kruger]], four-term president of the old [[South African Republic]]. The reverse depicts a [[springbok (antelope)|springbok]], the national animal of South Africa. The image was designed by [[Coert Steynberg]] and was previously used on the reverse of the earlier South African five shillings (1947-51 and 1953-59) and 50 Cents (1961-64) coin. The name "South Africa" and the gold content are inscribed in both [[Afrikaans language|Afrikaans]] and [[English language|English]] (as can be seen on the pictures of the coin).

The word "Krugerrand" is a registered trademark owned by [[Rand Refinery|Rand Refinery Limited]], of [[Germiston, Gauteng|Germiston]].

==Proof Krugerrands==

The South African Mint Company produces limited edition [[Proof coinage|proof]] Krugerrands intended to be collectors' items rather than bullion investments. These coins are priced above bullion value, although non-proof Krugerrands also have a premium above gold bullion value. They can be distinguished from the bullion Krugerrands by the number of serrations on the coin's edge. Proof coins have 220 edge serrations, while bullion coins have 160.<ref>{{cite web|title=2008 Krugerrand Series |publisher=South African Mint Company |access-date=6 June 2009 |url=http://www.samint.co.za/index.php?option=com_content&view=article&id=13&Itemid=96 |url-status=dead |archive-url=https://web.archive.org/web/20090310043710/http://www.samint.co.za/index.php?option=com_content&view=article&id=13&Itemid=96 |archive-date=10 March 2009 }}</ref>

==50th Anniversary Krugerrands==

2017 marked the 50th year of issuance (1967–2017), and to commemorate the anniversary, the South African Mint produced "Premium Uncirculated" versions in gold (.916 or 22 carats) and, for the first time also in platinum (.999 fine) and silver (.999 fine). The issue limit for these commemorative platinum, gold, and silver coins was 2,017 for platinum, 5,000 for gold, and 1,000,000 for silver. The commemorative issues are distinguished by a '50' privy seal mark above the springbok design on the reverse for the platinum and silver issues and to the right of the springbok design on the gold issues. In addition to the "Premium Uncirculated" issue, 15,000 silver "Proof" Krugerrands were also issued, as well as "Proof" Krugerrands in gold and platinum.<ref name=":0" />

==Export control==

The [[South African Reserve Bank]] restricts the exportation of Krugerrands by a South African resident to a non-resident to a maximum of [[South African rand|R]]30,000 (about US$2,100 or €1,870 {{as of|June 2018|lc=true}}). Visitors to South Africa can export up to 15 coins by declaring the items to the [[South African Revenue Service]].<ref>[https://www.resbank.co.za/en/home/what-we-do/financial-surveillance/FinSurvFAQ Financial surveillance and exchange controls  FAQ]</ref>

==Charitable donations==

In the 21st century, Krugerrands have received media attention in the United States after anonymous donors have left the valuable coin in the [[Salvation Army]]'s annual "[[Christmas Kettle]]" donation jars in various cities around the country.<ref>{{Cite web|url=https://www.wtxl.com/news/local-news/salvation-army-of-tallahassee-receives-rare-south-african-krugerrand-coin|title=Salvation Army of Tallahassee receives rare South African Krugerrand coin|date=2019-12-26|website=WTXL|language=en|access-date=2019-12-26}}</ref><ref>{{cite news|url=http://seattletimes.com/html/localnews/2017075882_salvationarmy23.html|title=Krugerrand dropped into Salvation Army kettle|last=Glenn|first=Stacia|date=22 December 2011|newspaper=The Seattle Times|access-date=8 August 2019 |archive-url=https://web.archive.org/web/20141220205247/http://seattletimes.com/html/localnews/2017075882_salvationarmy23.html |archive-date=20 December 2014 |url-status=dead}}</ref><ref>{{cite web|url=https://news.yahoo.com/blogs/sideshow/mystery-person-drops-another-gold-coin-in-salvation-army-kettle-183145530.html|title=For fifth year in a row, mystery person drops a gold coin in Salvation Army kettle|date=13 December 2013|publisher=AP|access-date=14 December 2013}}</ref><ref>{{cite web|url=http://www.wday.com/event/article/id/72797/|title=Gold Krugerrand appears in a Salvation Army red kettle|date=20 December 2012|publisher=WDAY|access-date=26 June 2013}}</ref>

==See also==
* [[Bullion]]
* [[Bullion coin]]
* [[Economy of South Africa]]
* [[Gold as an investment]]
* [[Inflation hedge]]
* [[Silver as an investment]]
* [[Mosi-oa-Tunya (coin)]]

==References==
{{Commons category}}
{{Portal|Money|Numismatics|South Africa}}
{{reflist}}

{{economy of South Africa}}

[[Category:Bullion coins of South Africa]]
[[Category:Gold bullion coins]]
[[Category:Silver bullion coins]]