Krugerrands – Still The King of The Hill?

The last few weeks have seen a glut of Krugerrands coming into our possession. Obviously with the price of gold bumping up against historic highs the temptation to offload these coins and convert them into cash in the bank is very tempting and we, of course are happy to oblige!

Arguably the Krugerrand was the great granddaddy of gold investment coins. Up until their arrival gold coins were primarily coins of the realm first and items for investment, second. It was only when the South African government decided to capitalise on the fact that they mined about 70% of the world’s gold that the concept of a coin as an investment came about.

Weighing in a just short of 34g they contain 31.1g (or a Troy Ounce) of solid gold padded out with a bit of copper to make them the full 34g of 22ct. The addition of the copper gives them the characteristic coppery orange glow and the particular “feel” that only a Krugerrand seems to have. These attractive coins are highly negotiable anywhere in the world. Now available as whole coins or fractional – half, quarter and tenth Krugerrands reduce the barrier to entry to this type of investment and have spawned endless signet rings , charm bracelets and necklaces as a small stash of emergency value.

Latterly the concept was copied by Mints around the world – Canada, Australia, China and our very own Royal Mint who struck the Britannia 10z gold coin in all it’s glory. Luckily for us the Britannia has one golden advantage over the Krugerrand in that, as a coin of the (UK) realm, it is legal tender and therefore completely devoid of Capital Gains Tax; unlike the Krugerrand.

So, if you are looking to sell or buy Krugerrands please do get in touch – remember we come to you and we cover all of Plymouth, South Hams, Torbay, South East Cornwall and West Devon.