During the late 1960s and early 1970s, South Africa mined 75 per cent of the total gold output in the western world. Seeking a way to market and promote gold to increase demand, the South African government backed the idea to produce the Krugerrand gold coin.
Whilst some countries disallowed the Krugerrand coin due to its association with the apartheid in South Africa, it was still the most popular gold bullion product across most of the world in the 1970s.
What’s the value of a Krugerrand gold coin?
As with the vast majority of investment gold products, the Krugerrand coin is priced according to the content of gold in the coin, with a small premium (commonly known as a ‘fashion charge’) added to cover production and packaging costs.
This means that the South African Krugerrand doesn’t have a face value, with its value instead based on the fine gold content as priced twice per day by the London Bullion Market Association (LBMA).
The LBMA announces its gold price fix at 10.30 and 15.00 daily.
When the Krugerrand coin achieved top-seller status in 2016, Richard Collocott, executive head of marketing at the Rand Refinery said: “It’s more than exceeded any expectations that could have been had at the outset.“We anticipate and we have every intention for Krugerrands to remain, if not the top-selling gold coin in the world, in the top three.”
Source: Gold Bullion
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