Krugerrand

A 916.7 fine legal tender coin with no declared face value, minted in South Africa since 1967, containing exactly one troy ounce of fine gold (actual weight 1.09 ounces). The Krugerrand pioneered the concept of the bullion coin; as it contained precisely one ounce of gold, its price could be related directly to the gold price. It was sold initially to distributors at a 3% mark-up over the gold price.

The pioneering bullion coin from
South Africa, of which over 44
million were sold world wide

(Credit: World Gold Council)

Aided by an active marketing campaign, the Krugerrand achieved wide circulation in the 1970s, particularly in the former West Germany and the United States. Smaller half, quarter and one-tenth troy ounce coins were also introduced; over 44 million one-ounce and 10 million smaller sized Krugerrands have been minted. Worldwide marketing of the coin ceased after 1984 because of economic sanctions against the marketing of South African goods but minting for the home (South African) market continued. Active international marketing has not been resumed since South Africa’s new multi-racial government was installed because of lack of interest generally in bullion coins.