In order to improve the marketability of its gold, South Africa, in 1967 minted its first gold krugerrand. Though a legal currency in Africa, it is generally not used in that manner. Rather it has become a collector’s item world over and also goes by the name of medal coins. Worldwide, it is the first coin that comes at the current value of gold and not at a pre-fixed rate. It was first minted as a one-ounce coin of 22-carats, but today is minted in several weights.
If you are planning on investing in Krugerrands for monetary security over a longer period. There are a few things that you will need to keep in mind. For starters, remember that krugerrands are 22-carat and not 24-carat. 24 carat is gold in its purest form and this can make it too soft to mint. Many novice collectors make the mistake of comparing its rates with jewelary pieces of 18, 14 or even 12 carat gold. If you buy anything that claims to be 24-carat Krugerrand, rest assured that it is cut with some other metal.
If you are a coin collector or dealer then you will be able to get krugerrands through estate sales. How much you pay for it will depend on what the going market rate is that day. What effectively happens is that the price you buy it at today will be the same price that it can be sold at whenever you choose to. The only drawback here is that you have go with the risk that when you actually need to sell the coins, then the rate you bought them at will not be the current rate. This could result in your investment being a loss rather an a return of investment like you hoped it to be.
The Krugerrand was the forerunner for other coins such as the Canadian Gold Maple Leaf or the Australian Nugget and even the Mexican Gold Peso or the US Golden Eagle. Because these are not as easily available for investment as the Krugerrand, they have been subject to counterfeiting. No matter what kind of coin that you are investing in, it would be good to have an expert look over the coin before you actually buy it. Check for authenticity and weight.