What is Krugerrand?

Defining Krugerrand is quite simple, but understanding its importance may require accidents in the world economy and international politics.

Krugerrand is a gold coin erased by South Africa, but it would never be used to buy food or gas. Unlike other gold coins, Krugerrand has no real nominal value except for its rare metal content. On the front of the coin is the profile of Paul Krugera, the first President of South Africa. African words Suid Africa appear, along with the English South Africa . Krugerrand contains male Springbok, a national symbol of South Africa. There is also a date stamped in two parts on both sides of Springbok. Krugerrand has serrated edges. The actual weight is just over 1 troy ounce, because a small amount of Copper, about 1/12 of the total weight, is added to make the coin more resistant to damage. Because Krugerrand is considered to be a statutory payment, it does not have to bet after another sale melted to ingot. In 1980, three smaller sizes of Krugerrands, weighing 1/2 ounce, 1/4 ounce and 1/10 ounce.

Here is a place where politics and economics enter the picture. The United States and other countries supported their currency with the equivalent contributions of gold - economic practice known as the gold standard. Over time, the US cash register ceased to use gold as a deposit for the currency and relied more on circulation control. The government still had huge reserves of gold, but a private individual had to rely on the stability of the national economy. Private gold ownership in the form of bricks or ingots was strictly monitored or even prohibited by law.

Meanwhile, the Republic Aafrika discovered huge golden veins and eagerly sold it to the world. Since the private ownership of the golden ingots was illegal, the South African government decided to make a gold coin and giveeats "status" status. It was not unlawful to buy foreign coins for US citizens, no matter what metals were used. South African Krugerrand could be sold for only 5% at the current price of gold. The South African government would benefit from the sale of its gold and investors would have a hedge against economic collapse. Krugerrand can be easily disposed of into the currency in most countries due to its special content.

The main problem with the sale of Krugerrand is the controversial history of South Africa. The white minority, especially European shares, has practically maintained the black majority under the decades through a segregation plan called Apartheid. Krugerrand was first driven at a time when black workers were very badly treated in diamond and golden mine, although racial conditions in South Africa have improved in recent years. Purchase Krugerrands on the days of active apartheid can be considered a silent agreement.

Another gold coin has now appeared to zPoKrugerrand, made with 24 carat gold and without copper alloy. It is much easier to buy gold ingots as an investment today than at the age of 60. Since 1967, an estimated 54 million+ Krugerrands sold worldwide has been sold, but its days as the only legitimate source of private investment gold ended.