The gold Krugerrand is a very popular way in which to invest in gold bullion. It is universally accepted throughout the world. This is because it is both pure and authentic.
Introducing The Krugerrand
Krugerrands are gold bullion coins that come from South Africa. They have been minted since 1967. As such, they are the world’s longest continuously minted gold bullion coin. On the front there is the portrait of the State President of the South African Republic: Paul Kruger, then on the back there is a Springbok antelope, which is a type of gazelle. The South African Mint Company mints these in South Africa but they are then sold throughout the world It measures 32.77 in diameter and is 2.84 mm thick. The Krugerrand is made of 22 karat gold, which means that it is 91.67% pure gold. There is a combination of both copper and silver added to the coin in order to make the bullion hard.
How To Purchase The Krugerrand
The first thing you must decide is what size of Krugerrands you wish to purchase. One-ounce is the original size and it is also the most commonly traded size. However, there are also ½ ounce Krugerrands (27 mm in diameter, 2.24 mm thick), ¼ ounce Krugerrands (22 mm in diameter, 1.52 mm thick) and 1/10 ounce Krugerrands (16.46 mm in diameter, 1.19 mm thick).
It is also vital to take a look at your budget. Krugerrands’ price will depend upon gold’s spot price plus an additional 5% for production costs and merchant profit. For this reason, you may want to shop around a little. However, you only want to make a purchase from reputable dealers who can guarantee authenticity since counterfeits do exist.
You should also not be afraid to ask the gold dealer whom you are working with for a better deal. Whenever you do so though you do need to keep in mind that dealers really like to sell gold bullion in bulk. This means that if you are purchasing a large quantity of Krugerrands you should be able to negotiate a better price for yourself. At the very least you should receive both free shipping and insurance too. It is also important to note that a lot of states are willing to waive the sales tax whenever you make a gold transaction of over $1,000. Not every dealer will tell you this though.